Parenthood and pension planning

Currently on a maternity leave, Koryn is Plannera’s Manager of Marketing & Communications. Koryn and her husband, Edward, have carefully managed their finances to allow them to buy a house and raise two children while pursuing their passion for travel. We caught up with Koryn upon her family’s return from Istanbul, Turkey, to ask about their pension planning.

What is your approach to retirement planning and savings as you raise a young family?

I was fortunate to be told early in my career that a large earnings gap between me and my husband could occur if I didn’t contribute to my pension during maternity leave. Although you can’t contribute while on a maternity or paternity leave, you’re allowed to make up for missed pension contributions upon your return to work. For me, this was a huge priority. If I didn’t make up for the missed contributions, I would miss out on my employer’s matching contributions and potential investment returns – amounting to thousands of dollars by the time I retire.

Making a lump-sum payment or opting for payroll deductions upon your return are two options. However, a third option is to transfer existing RRSP investments to your PEPP account. For me, this was an easier way to boost my retirement savings with the least impact on my income when I return to work.

What would you tell people in mid-career with regards to retirement planning? 

The earlier you start planning the better. However, by mid-career, don’t think your ship has sailed! Today is always the right time to learn more about your pension and boost your retirement. PEPP is a great pension plan for early and mid-career members because it is a defined contribution plan. Unlike defined benefit plans with a set retirement payment, your PEPP pension amount is based on you and your employer’s contributions, as well as your PEPP investment choices. There is more flexibility in this account to allow you to dream up your ultimate retirement goal and achieve it!

How can a member in mid-career use PEPP to their best advantage? 

Make sure you’ve attended at least one PEPP workshop by mid-career. My husband and I attended a PEPP workshop together to better understand my pension and how it will work with his retirement accounts.

>> Workshop information is found on the Learning Events section of the PEPP website.