Advice-only planning for people deciding what to do with a package, a pension election and a set of deadlines that arrived at the same time, whether the next step is another job or retirement.
Pension, tax, stock options, benefits and the timing of your next move all pull on each other.
We compare a lifetime indexed income against a lump sum, including the portion that must come out as taxable cash, survivor benefits, longevity and how much investment risk the choice transfers to you.
Lump sum, salary continuance or an allocation split across two tax years each land differently on your marginal rate, benefit continuation and EI.
Part of a retiring allowance can often be rolled into an RRSP based on years of service, on top of regular contribution room. We work out what applies to you before the paperwork is signed.
Stock options and RSUs usually have a short post-termination window, are taxed as employment income when exercised, and can require cash you have not received yet.
We model whether the package and your existing assets bridge you to retirement, or how many more working years the plan actually requires, so the job search has a target.
Group life, disability and health coverage end on a date. Conversion options are time-limited and usually do not require new medical evidence, which matters more than most people expect.
Pension elections, option exercise windows and benefit conversions all close on fixed dates, often while you are still deciding whether to sign.
It is a trade between a lifetime indexed income and a lump sum you control and carry the investment risk on. The comparison has to include the portion of a commuted value that must come out as immediately taxable cash, survivor benefits, longevity, and how much market risk the choice moves onto you. It is modelled against your own numbers, because the answer genuinely differs from person to person.
It depends on how the package is paid. A lump sum, salary continuance, or an allocation split across two tax years each land differently on your marginal rate, on benefit continuation and on EI. Where there is any choice in the structure, that choice is usually worth more than anything else in the negotiation.
Part of it often can. A retiring allowance can frequently be rolled into an RRSP based on years of service, on top of your regular contribution room. How much qualifies depends on your service history, and it is worth working out before the paperwork is signed rather than after.
They usually have a short post-termination exercise window, are taxed as employment income when exercised, and can require cash you have not received yet. Because the window closes on a fixed date, this is often the most time-critical item in a package.
Group life, disability and health coverage end on a date. Conversion options are time-limited but usually do not require new medical evidence, which matters more than most people expect - particularly if anything in your health history would make new coverage expensive or unavailable.
That is worth answering before the job search starts rather than during it. The plan models whether the package and your existing assets bridge you to retirement, or how many more working years are actually required, so the search has a target instead of a deadline.
Email us directly at [email protected], or book a call to start the conversation.