Age 51 - Firefighter
Brent is approaching 30 years working as a firefighter in northern Ontario. In addition to his OMERS defined benefit pension, Brent has prepared for retirement by buying several investment properties. During his firefighting career, Brent banked a number of sick days and expects to collect about $15,000 in sick-leave gratuity when he retires. He is considering investing that lump sum in an AVC account. When he retires next November, Brent plans to put his $15,000 in an RRSP account with his bank, because he has contribution room, then transfer the amount to his AVC account. He doesn't expect to need the funds for at least 10 years, and understands he can access some or all of the funds in his AVC account during the first six months after retirement and during the annual March/April withdrawal window thereafter. The fact that the fees and expenses are offered on a cost-recovery basis is a key factor in Brent’s decision, as he considers it well worth the trouble of setting up an RRSP account, then later making the transfer to an AVC account. What may be right for Brent may not be right for you, so carefully consider how the AVC option may fit your plan to save for retirement.