@calmmoneycoach: JUST HANDED A SEVERANCE PACKAGE? What to do before you sign, piece by piece Being let go late in your career is hard, and the money can take years to recover. Stats Can found long-service workers were often still earning 18 to 35 percent less 5 years later. Here's what I'd do, piece by piece, using Dana: 56, in Ontario, 33 years at one company, $104,000 salary, offered 12 months of pay. 1. Check the offer before you sign. Most provinces top out at 8 weeks of pay, $16,000 for Dana. Ontario adds severance pay on top, so her minimum is about $68,000, and courts have given people with her years up to about 24 months. Have an employment lawyer read it. You can deduct the fee. 2. Plan for the tax. Her employer holds back 30 percent, but a year of pay on top of 6 months of salary is taxed at about 45 percent at the top in Ontario, 38 in Alberta and 47 in Quebec. That's about $6,500 more owing in April. 3. Keep 6 to 12 months of cash, then use the RRSP. $36,000 sent straight from her employer to her RRSP cuts her tax bill by about $15,800. She pays tax when it comes out later. 4. Split it over 2 years if next year's income will be lower. $26,000 paid on 2 January saves her about $2,700. 5. Apply for EI within 4 weeks. A temporary rule lets EI start right away, so her money lasts 4.5 to 6.5 months longer. Ottawa has announced another year past October, so check it's still on when it's you. Been through a layoff? What do you wish someone had told you? The severance planner and the full guide are in my paid community at calmmoneycoach.com General education only. Dana is a made-up example. 2026 rules, and your province changes the numbers. #severance #layoffs #employmentinsurance #rrsp #personalfinancecanada

Brian | Calm Money Coach

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Monday 05 October 2026 23:00:00 GMT