April : Career Transition: Prepare Yourself Financially

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Your financial security is important to your well-being. A stable situation, with sufficient resources, is a goal to achieve or maintain for peace of mind.

However, military personnel change their sources of income after their career transition and risk a reduction in pay. They need to find a sufficient regular employment income to cover their expenses.

That’s why it’s so important to understand the financial consequences of career transition, so that you can prepare for changes in your income and maintain your quality of life in civilian life.

Identify the income gap to prepare your financial options and adapt your standard of living

You need to be aware of the financial consequences of your career transition BEFORE you start, especially by identifying the gap between your military income and your anticipated civilian income. So, before your transition, it’s important to be aware of this income gap, but above all to analyze it carefully.

You should start by comparing the total net monthly income deposited in your current account with what will be deposited as net income from the military pension(s). This difference is probably smaller than you think, since there will be no withholding at source from your pension income for social programs.

Once you’ve quantified this gap, you’ll be able to calculate the number of hours of work paid at minimum wage required to fill it. This very important information will enable you to identify and control the financial repercussions of your transition on your family’s budget and your standard of living.

By following this simple procedure, you’ll reduce your anxiety. You’ll also be able to take the necessary steps to maintain the same quality of life you enjoy with the Forces.

The transition is different for everyone. So is the planning. Personalized support from your financial advisor at this important stage in your life can go a long way: less stress, less time spent researching online, and fewer unfortunate oversights.

Patrice Bergeron, General Manager of the Caisse Desjardins des militaires.

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