What to do with pension money

Question: I have worked for the same international company for 14 years. I recently moved on to other opportunities and I will be in a situation where I can leave my pension money with the company that I previously worked for or cash it out and put it into my own RRSP portfolio.  What is the smart thing to do?  I am concerned because my own RRSP portfolio has been losing money. – S.M.

Answer:

If the pension plan is of the defined benefit type, my general advice is to leave the money where it is. That way, you have a guarantee of the amount you will receive when you eventually retire, plus the money will be managed professionally. There is no guarantee from an RRSP. – G.P. (July 2003)