Expert guidance for one of the most important financial decisions you’ll ever make

Pension decisions are important and impactful. Whether you are leaving a job mid-career, considering a retirement offer, or reviewing your pension benefits, understanding your options and how they fit into your long-term financial strategy is essential.

At Ross Taylor Financial Corporation, we help Canadians make informed, confident choices about commuting their pensions. Our personalized guidance helps you evaluate the key considerations, tax implications, and how each option aligns with your goals – today and for years to come.

Every pension decision is unique. It’s a key moment in your financial journey, and we’re here to support you every step of the way.

What is pension commuting with a Defined Benefit plan?

Pension commuting means taking a one-time lump sum payment now, instead of receiving monthly income from your pension plan in retirement. This option applies to Defined Benefit (DB) pension plans and is usually available when you leave your employer.

The lump sum – called the commuted value – can often be moved into a Locked-In Retirement Account (LIRA) or a locked-in RRSP to keep it tax-deferred for retirement. In some cases, it can also go into a Life Income Fund (LIF) or be used to buy an annuity from an insurance company.

If the amount is higher than government transfer limits, the excess will be paid to you in cash and taxed. Depending on your available RRSP room, some of it may still be eligible for transfer to a regular RRSP.

Pension commuting gives more control over how and when retirement funds are used — but it also comes with important considerations. That’s why it’s essential to understand the options before making a decision.

Can a Defined Contribution plan be transferred?

When you retire or leave your employer, you may choose to transfer the savings from your Defined Contribution (DC) pension plan into a personal retirement plan. Depending on your situation, options may include a Locked-In Retirement Account (LIRA), locked-in RRSP, a Life Income Fund (LIF) or locked-in RRIF, a regular RRSP or RRIF if the amount is small, or purchasing an annuity for guaranteed income. Your pension plan administrator will outline the options available.

Working with our team can help ensure your choice aligns with your long-term retirement goals.

Who we help

We support Canadians at all life stages, including:

  • Mid-career professionals leaving a job and evaluating pension options.
  • Workers in their 40s and 50s considering whether to commute their pension.
  • Pre-retirees and retirees weighing income options and long-term needs.

Whether you’re nearing retirement or making a career change, we help you navigate the decision with clarity and care.

Our services

1. Pension benefit analysis

Providing you with a clear, personalized explanation of your pension plan type, options, and projected outcomes.

2. Commutation decision support

We help you assess whether commuting is right for you – considering cash flow, tax, longevity, flexibility, and estate needs.

3. Commuted value transfers

If you choose to commute, we manage the process of moving your lump sum into appropriate accounts while maximizing tax efficiency.

4. Retirement income strategy

We design a sustainable, tax-aware income plan that fits your retirement timeline, lifestyle, and broader financial goals.

5. Tax planning and estate integration

Our approach includes long-term tax planning and considers how your pension decision affects your ability to support a spouse, leave a legacy, or manage changing needs in retirement.

6. Ongoing advice and adjustments

As your life evolves, so will your plan. We’re with you for the long term – reviewing, adjusting, and staying aligned with your goals.

Why it matters

Deciding how to access your pension is a big step – one that can shape your income, flexibility, and lifestyle in retirement.

We’re here to make it easier. We’ll walk you through your options, focus on what matters most to you, and help build a plan that supports your next chapter with confidence.

Ready to explore your pension options?