Personal Finance

Retirement option opinions

  • Last Updated:
  • Jan 7th, 2019 11:42 am
[OP]
Deal Addict
Sep 19, 2005
2838 posts
47 upvotes

Retirement option opinions

Once retirement date is chosen, have some choices to make. Get 1 days pay for every year worked which can be taken in cash payout or time off with pay prior to going off the books and onto pension. In this case its 30 days pay which equals 2 months wages . Also can use vacation or take it in cash payout. Vac is 7 weeks
Any pros or cons ? Or 1 more beneficial then other?
2 replies
Deal Fanatic
Feb 15, 2006
7941 posts
2262 upvotes
Toronto
If you take the vacation pay, it adds on top of your pay for the year and you'll have to pay tax on that. That may or may not be good, depending on what other income you have that year. Taking vacation days is preferable to some people, because it adds to the length of time working, and into the pension calculation.

Everyone's situation and preferences is different. Good luck in your decision.
Deal Fanatic
User avatar
Jun 26, 2005
9205 posts
1377 upvotes
Toronto
IMO the best is take vacation, and during that time off, earn money , preferably something that "usually" no one claims on their tax return (eg. Tutoring, baby sitting)

Win win. Hehe

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