If you have a Group Registered Retirement Savings Plan (Group RRSP), you can keep saving in the plan until the end of the year in which you turn 71. You can convert that money to income when you retire.
For other types of pension plans, it depends on what you do after you leave. Here's a quick look at what happens.
What happens to my pension if I retire?
You may get your pension right away. It depends on your age, or your age and how many years you have been in your plan. For example, you may be able to retire early with a smaller pension.
What happens to my pension if I am not able or ready to retire?
You may be able to take your pension benefits with you. There are clear rules about your rights. You may have to be a plan member for a certain amount of time, for example.
There are also clear rules about what you can do with your pension money until you retire. You might be able to:
- Transfer your pension to your new company's plan
- Leave your money in the old plan
- Buy an annuity to get monthly income for life
- Transfer your pension to a special account
- Take cash.
Remember: There are rules that may protect your pension
Make sure you find out your options before you leave your company. You may want to get professional advice about what to do with your pension money.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.