Transition Toward Retirement
More than ever, the transition toward retirement is carried out progressively. It is not necessary to completely stop working to retire. You have various options. For example, you can reduce your working hours or choose another job at the end of your career.
The benefits of phased retirement
Here are some of the reasons why workers choose phased retirement:
- make a smooth transition between work and retirement;
- combine employment earnings with a retirement income;
- continue to work while making use of their expertise.
Phased retirement made-to-measure
Whether it is related to the Québec Pension Plan (QPP), your workplace pension plan, your personal savings and/or your employment earnings, there are many possibilities for phased retirement.
Québec Pension Plan
Before applying for your retirement pension under the
QPP, you can decide when you want to receive it:
- At age 65, you will receive 100% of your pension.
- After age 65, your pension will be higher for life.
- Before age 65, your pension will be lower for life.
It is an important decision that is final. It is worth thinking about because the payment amount you will receive for the rest of your life depends on it. Think about it: you could receive your pension for more than 30 years. When you feel the time is right for you, you can
apply for your retirement pension.
Good to know
After age 65, you can stop working, reduce your working hours or choose a job that pays less without lowering the average earnings used to calculate your pension.
You can work less and still contribute as much to the
QPP! If you are a worker aged 55 or over, you can make an
agreement on contributions during phased retirement.
Are you already receiving your retirement pension under the QPP?
Workplace pension plan
A pension plan can be offered by your employer. Often called a "pension fund", the plan can offer different measures, which vary depending on the type of plan:
Your personal savings and/or your employment earnings
Those sources of income can help you meet your financial needs during retirement. They can also help with your phased retirement by allowing you to wait before applying for your retirement pension under the QPP.
What is your withdrawal plan?
Before retiring, it is important to plan how and when you will receive your various incomes. This is what we call a withdrawal plan. The aim of the plan is to generate as much income as possible while minimizing the
financial risks related to retirement. A well-thought-out plan can earn you a lot of money and ensure greater financial security.
Talk to a financial planner who can help you make informed decisions based on your personal situation, needs and goals.
Other useful information