Does Cashing Out Your Pension Make Financial Sense?
If you've left a job or will be retiring soon, you may have the option to cash out your pension and put your pension's commuted value into a LIRA or an RRSP. Getting a lump sum will provide you with some investment opportunities, but it also comes with the risk that you'll be tempted to overspend early in your retirement. To help you make this decision, it's essential to be aware of critical factors – such as when your pension will start and what kind of income you may be able to earn if you take a lump sum.