# Non-indexing Define Benefit Pension Plan vs Locked-RRSP



## Crazy Chester (Dec 15, 2011)

I left my government job and have to decide what to do with the pension. Leave it there or move it to a locked-RRSP. The plan in no longer indexing. Advice?

Thanks.


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## Daniel A. (Mar 20, 2011)

You need to provide some real information for anyone to offer an opinion. 

Large amount or small, your age or planning how many more years of working.
Even without indexing the government plan is safer than the market.

How many years do you have in the plan?


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## the-royal-mail (Dec 11, 2009)

Leave it in the DBP. The payouts, however small they may be are guaranteed. You'll never get the kind of performance and guarantee in your own RRSP. Leave the money exactly where it is and then start collecting at 65. That's what I would do. It's a no brainer really.


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## Brian Weatherdon CFP (Jan 18, 2011)

Yet if it's not indexed, 3% inflation will eat away at purchasing power so you've only got 73 cents on the dollar after 10 years. ...54 cents on the dollar after 20 years. 

Meanwhile the inflation that is hitting health -- and health services for aging in particular -- is far higher than 3%. 

I'm not ready to believe your govt plan has no indexing. I also know nothing of your personal circumstances. However I fully believe you'd help yourself by discussing your particulars with a financial professional in your community.

BTW... Risk of running out of money by non-indexing is probably higher than the risk of investing in a responsible dividend-and income focus.

Best to you!


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