Living the good life in 2029
January 31, 2012 2:38 AM Subscribe
[Brainy accountant-type filter] 37yo expat Canadian has a public service pension plan and too many options!
The options are (a) Take a lump sum now, which is $35,000, taxed at ~50%. (b) Move it to an RRSP (currently ~4% interest), pay no tax until it is withdrawn after age 55 (then probably minimal tax as withdrawing gradually while living overseas), or (c) Take the pension plan instead, yielding $277/month from 55-65yrs old, then $194/month thereafter (fixed, not indexed to inflation). We are thinking option (b) is the best, are there any reasons why it wouldn't be? Or any other solutions? This is not going to make or break our retirement, but we want to get it right.