# Lump sum or bi-weekly payments?



## Lindyloowho (Apr 10, 2015)

I am going to retire at the end of June 2017, when I will be 64 in the August of that year, at which point my employer is going to pay me 27 months salary (one month for each year I have worked for them). 

Would I be better off to:

a)	Take it as a lump sum, pay the taxes, put it into RRSP’s and receive my state pension a year early.

OR

b)	Carry on getting paid for 27 months, where the taxes would be taken off, as well as any state pension contributions, and apply to receive my one state pension when this stops.

My husband will already be receiving his state pension at that point, albeit at a reduced amount because he will have been on a Disability Pension for the previous 7 years due to ill health.

We own our home, and will have no large amounts of debt. We will have approx. $400,000 in RRSPs and TFSA's etc.

Thank you, Linda


----------



## Just a Guy (Mar 27, 2012)

Umm, you'd probably have to do some math based on a few details you've left out...

Some factors which may affect your decision:

What is your tax rate?
Will your benefits be affected by a larger income in your final year?
How are your investments doing?
What would happen if you died during the 27 months to the payout?
Do you need the money?

Those are a few thing to consider to start, there are probably more.


----------



## pooja.majorgainz (Apr 7, 2015)

Hey Linda,

Firstly, All the best for your retirement.

I think you should take lump-sum salary and do what you think you should do


----------

