Choose your pension option
This important decision will determine the amount of your lifetime monthly pension payments and the amount your spouse or beneficiaries may receive when you die.
Buying a temporary annuity
If you retire before age 65, you can buy a temporary annuity to increase your monthly pension payments until you reach age 65 or die, whichever comes first. Although your initial pension payments will be higher until you turn 65, buying a temporary annuity will permanently reduce your lifetime monthly pension.
You can buy a temporary annuity no matter which pension option you choose (single life or joint life).
Why choose this option?
- Buying a temporary annuity may help you meet the initial expenses of retirement, such as paying off a mortgage before you turn 65.
- A temporary annuity will reduce the amount of income from your pension after age 65. You may need to replace your pension income with other sources of income, such as an RRSP. Talk to an independent financial adviser about whether this is an appropriate choice for you.
Important things to keep in mind
- Consider how you will manage the drop in your pension income at age 65