I am a Canadian teacher who wants to get back my pension early. I know that 50% to 55% of my pension will be taken as penalty. Before starting the process I have several questions. I am 43 years old and have spent almost 15 years on my pension, teaching in Alberta, Nova Scotia and Nunavut. Most of my teaching was in Nunavut.
I am wondering what is the process to get access to my pension. I am currently on hold with Pensions Canada and am wondering if I should hang up, as I am not sure what to say. I am concerned that they may deny my request based on what I say. If they do not like my reasons for withdrawing it so soon, do they reserve the right to deprive me of my pension? Or is it none of their business? This is not for medical reasons, only for financial/personal reasons.
I have also heard that the pension needs to go through a third party like RRSP with my bank before it is released to me and it is a good idea to start this process two to three months before when I want a lump sum amount, Because it is estimated processing time. I don’t currently have an RRSP, but I can gain access to my pension or do whatever I need, or do what has been recommended.
Thanks in advance for any advice you can give!
Withdraw your pension early in Canada
Teachers are complete unicorns. As a mother of four, I want to say with all my heart: Thank you!
Before we go any further, let’s look at how pensions work in Canada. There are limits on withdrawal from pension. Regardless of what you choose to do with the fund, the main factor is age — the funds aren’t available until you’re 55.
Each province and territory has its own teacher pension plan, so before you take any other steps, you’ll need to collect all of your individual plan information from Alberta, Nova Scotia, and Nunavut.
Defined Benefits vs Defined Contributions: The Difference Between Pension Plans