7 Tips On Giving Notice Of Retirement That Save Thousands

➡️Fee For Service Planning: www.parallelwealth.com/planning
Retiring isn't as simple as sending an email to your boss. There is actually a lot of planning that needs to go into it, and this planning could potentially save you thousands in taxes. We'll go through 7 tips in this video that'll help you on giving notice of retirement.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement plan on track.  You can learn more about our services at www.parallelwealth.com/planning
Financial Resources I personally recommend:
➡️Retirement Income for Life: Getting More without Saving More (Second Edition): amzn.to/3tvIdVN
➡️Parallel Wealth Masterclass: www.parallelwealth.com/education
➡️Future Value Calculator: amzn.to/3EA6Qqv
➡️Neo Mastercard - no annual fee and average 5% back! - join.neo.cc/parallelwealth
➡️Free Credit Report with Borrowell: bit.ly/borrowellPWFG
➡️Maximize your Savings with EQ Bank - bit.ly/EQBankPWFG
The above affiliate links are provided for your convenience. If you click on a link and end up purchasing a product or service, this channel may receive compensation for the referral. We have personal vetted each product and service we provide links to.
OUTLINE
0:00 - Review Employment Contract
1:07 - Meet With Manager
2:08 - Written Notice
3:20 - Communicate With HR
7:21 - Plan For Transition
8:21 - Timing
8:50 - Seek Professional Advice
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
-----------------------------------------
DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

[@jeanjasinczuk7543]

I would be careful about a too early retirement notice, especially if nothing is in your contract like it is common in the US. Once the company has found the replacement, they might ask you to leave quickly and not let you finish your "6 month of early notice". Before giving your retirement notice, be prepare to leave quickly if requested. Do not assume a company will always be grateful to you for giving an early notice. You might discover that you are not as irreplaceable as you thought!

[@paulinetayen9559]

When you are “at will” it’s better to go. I’m front line supervisor and I’ve seen my colleagues give two weeks notice and have been dismissed within a week. I’m going to retire and will do the same.

[@tmm4782]

The last several weeks and months of your job may also require you to train others to carry on after you’re gone. Be prepared to help with that process.

[@bobb7918]

I am not giving any notice. One day I will walk in and say I am leaving.

[@faltio69]

I love it! 😂

[@edprior2821]

I think you advocate for much more loyalty to an employer than many deserve. My former employer gave me zero notice of my "retirement" at age 54, with no option of when to receive my accumulated time off and minimal payment in lieu of notice. Only option was to make maximum contribution to RRSP, but it was still a big tax hit. Happily, my 3 month experiment in self-employment has lasted 12 years and now I'm going to retire for real this year.

[@ParallelWealth]

Seems to be common nowadays too. Can't disagree. Almost always large corp

[@murraytown4]

I gave over 90 days notice but that included some unused vacation time. I found my replacement who shadowed me for a few weeks which is rare. I had no love lost with my employer of 30 years but nonetheless wanted to take the high road on my way out the door.

[@ddavidson5]

I gave my retirement notice in mid-January and I retired in mid-May. I was in a situation where I could have stayed another year and perhaps have received a severance package (or maybe not) but when you've had enough, you've had enough. The company was good about it and I was able to transition my work to someone else, it all went smoothly. I can say though that getting my DC pension funds out was more of a problem than I had anticipated. After I left I contacted the outsourced company that managed the employee DC pension funds and they had no process for people retiring of their own accord without a termination. I was in my 60s got to the end of the road and had just retired, I hadn't been downsized and they didn't know what to do with me. Apparently no one had ever made it to retirement before without being packaged out to early retirement since the DC plan was set up about 15 years earlier -- I was the one and only. A few calls back to HR at the company got this sorted out but was not something I expected.

[@nickyfurlano8531]

My father taught me when I was very young the government will take all your money. I worked 18 years and even that was too long for me.

[@Markevans36301]

White collar video all the way! I just searched my CBA tonight by coincidence and not one word and not one thing they can do to me. All my prep with be with my union plan and with the SSA. You are right about timing though, I was about to retire in October but found out that putting it off 7 months until May will pay me many thousands more in retirement benefits by giving me another good year with my retirement plan and short term gains with Social security due to the special rules about year of full retirement. Still not sure if I'll give two weeks or just walk out.

[@wrongwayconway]

In a hospital and the nurses who have retired said you need to give HR at least 30 days notice, not because it's polite but our HR is so incompetent that it will take them 30 days to get all your paperwork together and process it on time so you get your first pension payment on time.😆

[@markjustinthompson]

If you have a DB pension, check the details for how length of service is calculated. In my case, retiring on the 1st of the month gave me credit for that entire month and increased the commuted value by nearly $10k.

[@lynnrush7166]

Another great video! I’d just like to warn people to get their pension information (if they have one) and are retiring early in writing. I had a problem with what they thought I should be receiving because of a computer glitch. I had previous documentation to prove my calculations.

[@bluetocop]

I handed my notice and then went sick had holidays and more sick and never showed up again.

[@churchofpos2279]

My former employer threatened to terminate me, when I refused to get the Jab. I put my retirement in and quit 2 days later. HR complained that I didn't give them 2 weeks notice. I told them that they didn;t give me 2 weeks notice, when they threatened to fire me , so I was showing them the same respect they had shown me.

[@GORetireandGOGrey]

I had a discussion with my boss earlier this year to let him know that my plan was to retire this year but I did not set a date on it. This way the company was aware of my plans and they could proceed as they best saw fit. I submitted my official notice of retirement to both my boss and HR on May 29/23 disclosing my final day as Jul 4/23. I decided that I would not make it official months in advance as I did not see how that would be to my benefit. I've got a week to go and it has gone as smooth as I could have hoped for.

[@evadeanu1]

Lots of great points in this video. Thanks Adam.

[@vickidenouden3480]

I had accumulated a lot of professional development funds due to covid. So, I applied to go to a destination conference and used up the whole amount. A month later, I gave my notice and retired a month after that. It was worth it. Even though I should have stayed a few months longer, I wasn't going to leave that on the table too.

[@nickyfurlano8531]

Guess who paid for them? Me. All these lowlife downtrodden weasels should be paying every last cent of that money back to the government and in turn the government back to me as a rebate for funding these pathetic creeps they call Canadians.

[@paulinetayen9559]

I’ve vested and stayed four years so when I retire, I get 💯 percent

[@paulpoco22]

The employer health/dental is way better than the pension health/dental. They say do not take the dental benefit. They are correct. Put that dental amount in your own HISA account and just pay for your cleaning with that. Pension Dental benefit costs 125/month for 3 people & max payout per person is $1000 per year.

[@Moluccan56]

I may have to mention this to my financial adviser.

[@scribbler60]

Hi Adam, great video, you always generate good quality content. I'm just wondering about giving more than a few month's notice, however. In my personal experience, and the experience of those around me who have done this sort of thing, in every case - 100% - the company in question always delayed and delayed and delayed the process for onboarding/training the replacement. Then, at the very last minute, like within a week of the employee's last day, the company comes to the soon-to-be- retired worker and says, "You've really left is in a bind here. Can't you stay on for another few months?" And when the employee says, "Uh, no. I gave you X month's notice," generally the management gets in a snit and makes life difficult, sometimes even delaying or shortchanging final paycheques. Again, to be clear, every single person I know of who has given extra notice has run into this problem. It is not up to the employee to manage the company's HR or recruitment systems. (HR is wholly dysfunctional; the entire HR industry is a mess, but perhaps that's another discussion for another time.) If an employee is approaching retirement, there really isn't any benefit to them to give the company extra notice. It's never appreciated. Let's put it this way: if an organization wanted to terminate an employee, they'd do so without giving extra notice. So why should an employee give extra notice to such an organization?

[@deepak2496]

I completely agree. I am in the same boat. I have told my employer about two years ago of my decision and that can I get my replacement to start working with me so I can start working with the person and properly hand over the reigns. The employer wasn’t able to recruit anyone from within the company as my job is a bit complicated and full of headaches and multiple bosses so now they have started the process outside recruitment which is not going well. I have made my decision to leave 2 weeks before I turn 65 and the employer is in a bind. I can’t feel guilty for this because they knew of my intention way in advance. There is a stock option we were given as profit sharing which doesn’t mature until next year in October and I have no intention of staying on until then, also the stock has dropped 50% since we received them and keep on sliding.

[@sweetart9905]

I'm an HR Manager. No one is indispensable. When you're ready to retire don't procrastinate, just do it and leave on a high note.

[@vistaww]

While your suggestion of giving abundant notice is commendable it also can be one of the worst financial decisions you make. Example .. if you hope/plan to retire Nov 1 and give you notice 3 months earlier (Aug 1) and then get in to a car accident (for example) Sept 1 that is going to require months, or a lifetime, of assistance/physio then you’ve basically kindly given your employer notice to make their lives easier to replace you (although the accident changed that anyway) but you also lose access (as of Nov 1) to sick time, medical benefits and maybe even disability pay that is far superior to EI, that you would have still had if you had not given early notice. Is it likely, no, but is it possible yes. I am surrounded by coworkers looking out for #1 so to not look out for yourself at a time when money is really important is just stupid. I’ve given every indication that i hope to retire but i have to,d them that i will retain my right to not give early notice.

[@James_48]

It really depends on your letter of employment / contract. Many of these documents don’t stipulate anything around notice for retirement. In this case your approach is a good one. But, when there is language stipulated about notice, not following it can be costly. Ultimately, that’s the advice here - to make sure you understand if there is required notice, or not.

[@ParallelWealth]

I have seen this example play out a few times and it's always worked to delay retirment and keep the benefits. I would assume if you had an employment lawyer get involved they would agree with this result

[@captcruel]

if you have room, can a commuted value (or a portion) go straight into an RRSP?

[@tracyreaume6451]

Yes.

[@rshinde6338]

This is all fine if you are a top level player.

[@user-ho4nw5sf3w]

Leave, just pack your shit and get. Skip the cake in the break room, and the hands shakes and hugs. I will guarantee, you will not be missed. Enjoy retirement it's all yours, and as Time goes by you will find you don't miss the job, or, sadly the people.

[@Dom.Perignon123]

I should’ve included this question in one of your cpp videos, so apologies for going off topic > I’m born mid year and have always felt that I would begin collecting in January; so 61.5, 62.5, 63.5... > is there a preferred month to begin cpp in terms of indexing, ympe, ampe, etc or it just doesn’t matter? Thanks for your invaluable insight Adam!

[@ddavidson5]

Generally they talk about taking CPP on your 60th, 65th or 70th birthday just for convenience but you can of course start CPP any month after you turn 60. When exactly to start CPP is up to you though Adam, and others, point out that for many deferring to age 70 (whatever that month is for you) is often the best choice but it's not a "one size fits all" kind of thing. You might want to work with a qualified financial planner to determine when is best time for you to start CPP.

[@ParallelWealth]

Typically no there isn't. Last year was an anomaly as Dec 2022 was better than Jan 2023. Was more of a one off, so it can happen. But generally answer would be no

[@Dom.Perignon123]

​@@ParallelWealth Thanks kindly for your response Adam > didn't want to make my statement/question too long but essentially I was either watching video or reading article on Money Sense re that exact anomaly you mention, hence mentioning ympe/ampe Seeing as I have a DB, there are optimal timings for beginning based on a person's specific situation but it's good to know that there isn't an optimal MONTH for cpp in terms of indexing, etc altho there are optimal YEARS to begin cpp, depending on a person's specific situation Love and appreciate the content!

[@Dom.Perignon123]

@@ddavidson5 thanks for your insight and congrats on being the one and only retirement without being packaged out!

[@nickyfurlano8531]

You always take your CPP in December because January is the rate increase for the entire year. If yiou take it a month early and they louse it up which they will you have a month to have things fixed.

[@joebot9309]

Those follow me plans are a joke. I was paying about 100$ a month for my plan (Sunlife Canada Post) and they wanted over 400$ a month for the same plan lmao no!

[@brickman_]

I have some business with Sun Life. Can you explain what you are referring to.

[@bluetocop]

yah thats what i found

[@ParallelWealth]

The follow me type health plans have no underwriting, so they assume you have health issues. And yes, all medical plans are costly! Benefits employers give that many don't appreciate.

[@ddavidson5]

@@ParallelWealth I suppose if you do have some serious health issues at retirement it might be worth the $400 a month or whatever but I do agree though that in general buying a post retirement health plan isn't worth the money. I know a lot of education workers (I'm in Ontario) do buy the retirement extended health care plans through their union and it's the same $300-$400 a month cost. That said, many teachers are retiring in their 50s a decade before the provincial health plan for over 65s kicks in (adding prescription drugs, vision exams, physiotherapy and a few other things). For most it's probably still not worth buying the coverage but it is something I see a lot of education workers do.

[@MrCPPG]

Are you Canadian?

[@ParallelWealth]

Sure am

[@nickyfurlano8531]

He doesn't live in rat infested Ontario.

[@MrCPPG]

@@nickyfurlano8531 I am not Canadian. I only asked because I detected the accent and wondered if his advice applied outside Canada. Never been to Ontario.

[@FoyLo]

He lives in Alberta if I remember well.

[@ParallelWealth]

@@FoyLo just outside Vancouver

[@TacticalStrudel]

Unless the company has been exceptionally good to you, I see not reason to give more than a standard 2 weeks. Retirement is not special from any other resignation (reason is irrelevant as far as giving notice), and there’s no upside to a long lame duck period.

[@frederickb416]

promo sm 😝