Before the weather improves and we all want to be outside for the summer, get out the snacks because it’s time for one more personal finance movie night.

First of all, we feature the ever-engaging Bridget Casey from Money after Graduation. She explains why even in Calgary where public transportation is poor, she prefers to manage without a car. She says it saves her over $10,000/year and she is much healthier because she walks almost everywhere.

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TED Talks are influential videos from expert speakers on education, business, science, tech and creativity. Below we present videos of four excellent personal finance TED talks that are posted on YouTube.

Alexa von Tobel is the founder and CEO of LearnVest.com, the leading personal finance and lifestyle website that brings financial literacy to women. Since launching LearnVest, Alexa has been widely quoted as a personal finance expert and entrepreneur.

She takes you through the life of a very average new college grad, Jessica, and explains the pitfalls in each of the poor financial decisions Jessica makes and the way in which they affect her future.

Economist Shlomo Benartzi is a behavioral economist interested in combining the insights of psychology and economics to solve big societal problems. He talks about how we tend to want to spend money instead of saving which is fun in the present but causes major problems in retirement. In his talk, he asks: “How do we turn this behavioral challenge into a behavioral solution?”

The way people speak affects the way they save money. So many people view the future as a distant thing so they end up not saving for it right now. However, futureless language leads to the view that to get the future, it is important to think about the now. Saving money for the future is only possible if the money is managed properly right now. Keith Chen covers the whole topic extremely well. He explains just how those who use futureless language view the present and future as the same thing. It helps them take control of their finances right away.

So many parents give their children allowances, but it doesn’t really help them with their finances. This teaches children to think about a job, rather than expand their business ideas and build on their entrepreneurialism. Skills gained in younger years serve adults well when they’re looking into managing their finances.

Cameron Herald covers  how parents can help children become better entrepreneurs. He says that instead of expecting a set amount of money each week, it’s time to teach kids to start looking for the jobs that need doing around the house. The more they manage to do, the more they will make. They also get to negotiate the pay for doing the certain jobs.

*** Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

In 2017 the life expectancy for the total Canadian population is projected to be 79 years for men and 83 years for women. Of course, some people will die younger and others will live into their 90s and beyond. However long you live, eventually your funeral expenses and other debts must be paid for before your executor can distribute your estate to beneficiaries. 

How much does a funeral cost?
Canadian Funerals Online (CFO) notes that historically the funeral industry has not openly disclosed funeral prices, and many funeral home websites do not even publish a price list. However, these days you can find more funeral homes providing open disclosure of the cost of various funeral packages. Nevertheless, the cost of a funeral can still vary significantly depending on where you live and which funeral services provider you use.

There are two corporate funeral companies operating in Canada – Service Corporation International [Branded as Dignity Memorial] and Arbor Memorial.  Although not a rule, CFO reports that typically corporate funeral homes can be more expensive than family-owned funeral homes and that in the funeral industry, economies of scale do not always operate in favour of consumers.

Therefore, it is highly recommended that you investigate prices from more than one funeral home. Of course, this may not be practical or possible in the stressful period following the death of a loved one.

In a recent article on lowestrates.ca, Rebecca Lee discussed how much it costs to die in Canada. She reported that there’s no one-size-fits-all solution for the dozens of after-death decisions you’ll have to make. There’s also no one-size-fits-all price tag.

In an interview with Lee, Founder and CEO of Basic Funerals, Eric Vandermeersch, said that after-death costs can be as low as $1,500 or as high as $20,000. And while he pegged the average overall cost at $8,500, he admitted that the number varies wildly based on each person’s preferences, values, and culture.

“It’s like saying I want to buy a car, what should I budget for.” Vandermeersch explained. “There are a lot of options. There are people looking for just the basics and there are people looking for more traditional ceremonies.”

Lee enumerated some of the after-death arrangements you or your family will have to decide on. Some are required and others are mandatory. All costs are approximate and will vary based on city, province, and personal preference.

1. Death certificate ($15-$22) and registration (about $55).
2. Transfer services ($100+).
3. Shroud, casket, or urn ($0-$3,000+).
4. Body preparation ($125-$525)..
5. Formal ceremonies (visitation, memorial, funeral) plus staffing fees ($2,000 and beyond).
6. Burial plots and niches ($1,000 and beyond).
7. Burial or cremation services ($1,000 and beyond).

Burial vs. Cremation
According to CFO, as a very general guide a cremation is likely to cost a quarter of the cost of a burial.  A simple, direct cremation in Canada can start at around $600, whereas a cremation with a service, and extra disbursements (obituary notice, viewing, funeral flowers, etc), may cost in the region of $4,500.  As mentioned above, cremation service costs will vary depending upon your province and area. The cremation rate in Canada is at 65% making cremation by far the popular choice for families today.

Direct cremation is becoming more popular.  A direct cremation is when the deceased is simply collected from the place of death and transferred to the funeral home or crematory for an immediate cremation.  No service is conducted prior to the cremation [although sometimes a brief family viewing is conducted].

The cremated remains are returned to the family within a few days in a basic urn.  This is the least expensive means by which to conduct a funeral.  It can even be arranged online today, without the need to visit a funeral home.  Family can then arrange their own memorial at a later date at a place that suit the family.  This also puts the family in control of the memorial process, instead of paying a funeral home for this service.

CPP Death Benefit
The Canada Pension Plan death benefit is a one-time, lump-sum payment to your estate that can help to pay for funeral costs. The amount of the death benefit depends on how much and for how long you contributed to the CPP.  In January 2016, the average death benefit paid was $2,296.85 and the maximum was $2,500.

To calculate the amount of the death benefit, Service Canada first calculates the amount that the CPP retirement pension is or would have been if the deceased was age 65 at the time of death. The death benefit is equal to six months’ worth of this calculated retirement pension up to a maximum of $2,500.

If an estate exists, the executor named in the will or the administrator named by the Court to administer the estate applies for the death benefit. The executor should apply for the benefit within 60 days of the date of death.

If no estate exists or if the executor has not applied for the death benefit, payment may be made to other persons who apply for the benefit in the following order of priority:

• The person or institution that has paid for or that is responsible for paying for the funeral expenses of the deceased.
• The surviving spouse or common-law partner of the deceased.
• The next-of-kin of the deceased.

The death benefit is equal to six months’ worth of this calculated retirement pension up to a maximum of $2,500.

Also see:
Saskatchewan Funeral Costs Guide
The Prepaid Funeral: Advantages & Disadvantages

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

On April 10, 2018 the Saskatchewan government tabled its 2018-19 budget. It forecasts revenues at $14.24 billion, with spending at $14.61 billion, leaving a $365 million deficit.

Provincial sales tax remains steady at 6% but the PST exemption has been eliminated for used light vehicles with the exception of used vehicles sold privately and purchased for less than $5,000. Exemptions will also be made for used vehicles gifted between family members.

However, the budget does restore the trade-in-allowance when determining PST. This means PST is only applied to the difference between the value of the trade-in and the selling price of the vehicle being purchased.

The PST exemption on Star Energy Appliances has also been discontinued effective April 11th. PST will also be applied to the retail sale of cannabis, although revenue generated from this has not been included in the budget because there is still considerable uncertainty as to how much will be raised.

The Saskatchewan Party government announced a 3.5% wage reduction to public sector employee compensation in last year’s budget, amounting to a projected savings of $250 million, but that plan does not appear in this year’s budget.

The government is aiming for $70 million in compensation savings over the next two years. It says this will be achieved through “efficiency initiatives” and “overtime management.” Saskatchewan Finance Minister Donna Harpauer told CBC, “There are no layoffs related to this budget.”

There will be $5.77 billion more for health care spending in the new budget with the biggest chunk for the newly created Saskatchewan Health Authority. The province is also committing $11.4 million in new money for mental health initiatives, which the province said will cover the cost of hiring 40 new full-time positions. Furthermore, HIV medications will now be 100%  covered at an additional cost of $600,000. In addition, children under the age of six with Autism Spectrum Disorder are now eligible for $4,000 in government money per year, which is a total investment of $2.8 million.

The Saskatchewan Rental Housing Supplement designed to help low income families and people with disabilities pay their rent will be replaced by a program co-developed with the federal government slated for implementation in 2020. As of July 1, 2018, the province will stop taking applications, but clients enrolled before then will continue to receive benefits.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

If you are anticipating a large tax return you may have filed your income tax return as early as possible once you received all of your tax slips. The deadline for filing is April 30, 2018, but for Canadians who ran a business, or whose spouses ran a business, during the 2017 fiscal year, the tax deadline is pushed out to June 15.

However, for those of you who are still wading through the piles of paper on your desk to assemble the documentation you need to complete your 2017 income tax return, we present Part 2: Tax deductions, credits you need to know about. You can find Part 1 here.

1. 1. Line 212 – Annual union, professional dues: Claim the total of the following amounts related to your employment that you paid (or that were paid for you and reported as income) in the year:
      • Annual dues for membership in a trade union or an association of public servants.
      • Professional board dues required under provincial or territorial law.
      • Professional or malpractice liability insurance premiums or professional membership dues required to keep a professional status recognized by law.
      • Parity or advisory committee (or similar body) dues required under provincial or territorial law.
   2. Line 214 – Child care expenses: Canadian taxpayers can claim up to $8,000 per child for children under the age of 7 years at the end of the year, and $5,000 per child for children aged 7 to 16 years. For disabled, dependent children of any age who qualify for the disability tax credit, the amount to claim for that child is $11,000. More details about what expenses qualify, who can claim expenses and for whom expenses may be claimed can be found here.
   3. Line 219 – Moving expenses: To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to your new work or school. You can claim eligible moving expenses if you moved:
      • And established a new home to work or run a business at a new location; or
      • To be a student in full-time attendance in a post-secondary program at a university, college or other educational institution.
   4. Line 229 – Other employment expenses: Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as most tools and clothing. However, you can deduct certain expenses (including any GST/HST) you paid to earn employment income.You can do this only if your employment contract required you to pay the expenses and you did not receive an allowance for them, or the allowance you received is included in your income.If you are filing electronically, keep all your documents in case CRA asks to see them at a later date. If you are filing a paper return, you must submit a completed Form T777, Statement of Employment Expenses with your return. Keep all your other documents in case CRA asks to see them at a later date, including a completed copy of Form T2200, Declaration of Conditions of Employment signed by your employer.
   5. Lines 230 and 220 – Support payments made: If you are claiming deductible support payments, enter on line 230 of your tax return the total amount of support payments you paid under a court order or written agreement. This includes any non-deductible child support payments you made. Do not include amounts you paid that are more than the amounts specified in the order or agreement, such as pocket money or gifts that you sent directly to your children.
   6. Line 313 – Adoption expenses: As a parent, you can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $15,670. You can only claim these incurred expenses in the tax year including the end of the adoption period for the child.
   7. Line 319 – Interest paid on your student loans: You may be eligible to claim an amount for the interest paid on your loan in 2017 or the preceding five years for post-secondary education if you received it under:
      • The Canada Student Loans Act.
      • The Canada Student Financial Assistance Act.
      • The Apprentice Loans Act.
      • Similar provincial or territorial government laws.

      Only you can claim an amount for the interest you, or a person related to you, paid on that loan in 2017 or the preceding five years.

      You can claim an amount only for interest you have not already claimed. If you have no tax payable for the year the interest is paid, it is to your advantage not to claim it on your return. You can carry the interest forward and apply it on your return for any of the next five years.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

Spring almost sprung over Easter weekend, but as I write this blog it is the day after high winds and power outages. Today we woke up to snowdrops peeping through the snow on the ground. I think T.S. Eliot was on to something when he wrote in The Wasteland, that “April is the cruelest month.”

This week we preview a selection of blogs from a series of well-known Canadian personal finance writers.

Alan Whitton, aka BigCajunMan writes about Serial Refinancers. Serial refinancers just keep going back to the well and refinancing their debts with consolidation loans or similar debt vehicles. Much like serial murder (or murder in general), he says this is very bad! Consolidation or refinancing of a debt is supposed to be something you do once (if ever), not every 2 years.

In Paying Off Debt: An Effective Budgeting Approach, Doris Belland (Your Financial Launchpad) discusses two families to illustrate that cutting back sports activities in one family to save money is not necessarily the appropriate solution for the other household. According to Belland, two things are necessary to slay the debt monster: an understanding of why you got into debt in the first place, and knowledge of what you value.

What Happens If You Die Without a Will?  Your will reflects how you want your estate to be distributed upon your death. However, when you die intestate, the distribution is decided by a formula laid down by the Provincial Government—not you—and this formula can vary from province to province. “When you die intestate, an estate administrator will be appointed to wind up your estate and make any distributions to your beneficiaries,” Robin Taub explains. “Dying intestate may mean higher costs and delays in distributing assets to beneficiaries, compared to having a will appointing an executor of your choice.”

Once you stop working, your objective shifts from growing your investment portfolio to generating income from it. Many retirees obsess over generating enough retirement cash flow from their investments. They prefer a predictable stream of income to partially replace their previous salary income. Marie Engen explores some strategies for Generating Retirement cash flow from your Investments on the Financial Independence Hub. For example, you can withdraw only income (interest or dividend income); reinvest income, dividend and capital gains, take the amount you need for their annual living expenses and then rebalance; or purchase an annuity.

Planning a train trip? Money We Have’s Barry Choi offers 10 Train Travel Hacks You Need to Know . He suggests that you book early, use all available discounts, pack some food and don’t forget to bring your portable charger to avoid running out of juice. If you’re on an overnight train, earplugs and a sleeping mask can be helpful. Having your phone or tablet fully loaded with music and videos will keep you entertained.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

Spring has sprung, and with it a flock of for sale signs have appeared in every neighbourhood. Whether you are selling in order to upsize or downsize, a critical decision that can ensure your house sells at the right price within a reasonable period of time is a great real estate agent.

Home purchases and sales are for most people among the most significant financial transactions they are ever involved in. Therefore, a difference of even 0.5 per cent in real estate commission can significantly impact the amount you actually realize on the sale of your property.

First and foremost, you must be comfortable with your real estate agent and feel confident he/she is acting in your best interest. It is typically preferable not to have the buyer and the seller represented by the same agent. You may meet an agent you like at an open house or be referred by a friend or family member who has been satisfied with his/her services.

In a recent video interview on the Global News Morning Show Sean Cooper identifies online sources such as realtor.ca and feeduck.com to help you with your search.

Realtor.ca is owned and operated by the Canadian Real Estate Association (CREA), The site which is accessible online and on mobile devices is popular with sellers, buyers and renters. Features such as the mortgage calculator, social sharing, neighborhood demographics, and ability to connect with local realtors, are all available to assist you.

FeeDuck is a real-time auction that connects you with professional real estate agents who bid down their commissions, or bid up your buyer cash back offer. You are not obligated to sign with the agent – this is simply an introduction based on the criteria you entered. There is also no cost to the home seller or home buyer. You can find a series of frequently asked questions about feeDuck here.

Here are 20 questions to ask a prospective real estate agent before you sign the listing agreement on the dotted line:

1. Are you a full time real estate agent?
2. How many clients are you currently working with?
3. How long have you been working in my neighbourhood?
4. How many homes have you listed/sold in the last year?
5. How long do your listings remain on the market?
6. What professional credentials do you have?
7. How will you market my home for my best advantage?
8. Will you hold open houses? Public, broker only or by appointment?
9. How do you plan to advertise my home?
10. How will you help me stage my home?
11. How will you arrive at the listing price?
12. Can you provide a comparative market assessment?
13. What’s your sold-to-list-price ratio?
14. Can you give me some references?
15. When does the listing agreement begin and end?
16. What happens if my home does not sell in the specified time?
17. What happens if I change my mind about selling my home?
18. What are your commission fees?
19. Do I need to consider any other fees or charges?
20. What makes you different than anyone else?

Also see:
26 questions to ask your Real Estate Professional before you sign on the dotted line
How to Interview a Real Estate Agent
10 questions to ask when hiring a real estate professional
7 questions to ask a real estate agent before you commit

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

By now you have likely been profoundly saddened by media reports of the Humboldt crash that killed 15 members of the Broncos hockey family and  the subsequent vigils . You may be a friend or relative of at least one of the 15 victims. At Saskatchewan Pension Plan we share your grief and mourn with you.

In this space, we typically write about money – how to save it and how to spend it. But in reality, the heart and soul of our content is families. You learn about budgeting, paying down debt, registered educational savings plans and registered retirement savings plans so you can provide a good life for your family and remain independent when you retire.

You plan your finances so you can help your children mature into responsible adults and support their dreams to be professional athletes, farmers, electricians, teachers or nurses. You imagine attending their graduations, weddings and the birth of your grandchildren. And with the death of a child you are suddenly robbed of that future. In time dealing with their intense sorrow may become a little easier for parents of the Humboldt crash victims, but they will never forget.

I offer the link to a YouTube video of Rise Again by East Coast composer Leon Dubinsky, as sung by the Rankin Family. To me, the words of this beautiful song captures the role that our children play in our lives and in our hearts.

RISE AGAIN (WE RISE AGAIN)

When the waves roll on over the waters
And the ocean cries.
We look to our sons and daughters
To explain our lives
As if a child could tell us why.

That as sure as the sunrise
As sure as the sea
As sure as the wind in the trees.

We rise again in the faces of our children.
We rise again in the voices of our song.
We rise again in the waves out on the ocean,
And then we rise again.

When the light goes dark with the forces of creation
Across a stormy sky.
We look to reincarnation to explain our lives.
As if a child could tell us why.

That as sure as the sunrise
As sure as the sea
As sure as the wind in the trees.

We rise again in the faces of our children.
We rise again in the voices of our song.
We rise again in the waves out on the ocean,
And then we rise again.

We rise again in the faces of our children.
We rise again in the voices of our song.
We rise again in the waves out on the ocean,
And then we rise again.

And then we rise again.

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As I write this, a gofundme campaign for families of the victim has exceeded its $4 million target but remains open. In memory of the deceased you may also wish to make a donation of time or money to the sports organization or another charity of your choice supporting young people in your community.

 

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

In this world nothing is certain but death and taxes, but as my father-in-law used to say, there is no reason why you should pay any more than you have to. A Government of Canada website provides a table with the 94 deductions and tax credits you may be able to claim to reduce the amount of tax you must pay.

You will also find information on where to claim these amounts on your income tax and benefit return or a related form or schedule. You can sort the table by line number or topic, and you can filter by key word. While your electronic tax program will prompt you to consider each of these, it is important to understand what you may be entitled to so you can find and retain the required supporting documentation.

Here are some common deductions and tax credits you should be aware of. Part 2 of this blog will be posted later this month.

1. Line 208 – SPP, RRSP and PRPP deduction: Deductible Saskatchewan Pension Plan (SPP), registered retirement savings plan (RRSP) and pooled registered pension plan (PRPP) contributions can be used to reduce your tax. Any income you earn in SPP, your RRSP or PRPP is exempt from tax as long as the funds remain in the plan. However, you typically have to pay tax when you receive payments from these plans. For more information about RRSPs and PRPPs, see How much can I contribute and deduct? Members of SPP can contribute $6,000/year beginning in 2017 if they have sufficient RRSP contribution room.
2. Line 314 – Pension income amount: You may be able to claim up to $2,000 if you reported eligible pension, superannuation, or annuity payments on line 115, line 116, or line 129 of your return. For a detailed list of eligible pension and annuity income, go to the Eligible Pension and Annuity Income (less than 65 years of age) chart or the Eligible Pension and Annuity Income (65 years of age or older) chart.
3. Line 210 – Deduction for elected split-pension amount: If the transferring spouse or common-law partner has agreed with the receiving spouse or common-law partner to jointly elect to split his/her eligible pension income by completing Form T1032, Joint Election to Split Pension Income, the transferring spouse or common-law partner can deduct on this line the elected split-pension amount from line G of Form T1032. Only one joint election can be made for a tax year. If both you and your spouse or common-law partner have eligible pension income, you will have to decide who will act as the transferring spouse or common-law partner electing to allocate part of his/her eligible pension income to the receiving spouse or common-law partner.
4. Line 301 – Age amount: Claim this amount if you were 65 years of age or older on December 31, 2017, and your net income (line 236 of your return) is less than $84,597.
   Remember to claim the corresponding provincial or territorial non-refundable tax credit to which you are entitled, on line 5808 of your provincial or territorial Form 428.
   If your net income was:
   • $36,430 or less, claim $7,225 on line 301 of Schedule 1, Federal Tax; or
   • more than $36,430, but less than $84,597, complete the chart for line 301 on the Federal Worksheet to calculate your claim.
5. Lines 330 and 331 – Eligible medical expenses: You can claim medical expenses paid for yourself, your spouse or common-law partner and certain related persons. Generally, total eligible medical expenses must first be reduced by 3% of your net income or $2,237, whichever is less. You can find a helpful video and a list of eligible common medical expenses here.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

With the abolition of mandatory retirement in Canada, when you opt to actually leave the world of paid work for good is your own decision. There are financial milestones that may influence you  such as when you think you have saved enough to support yourself in retirement, but when you are ready to let go is also dependent on many more intangible factors.

After all, you not only need to retire from your job or your encore career, but you have must have something to retire to. For example, in the last several years I have joined a choir, been elected to the choir board and started taking classes at the Life Learning Institute at Ryerson in Toronto. Yet I’m still not quite prepared to give up my part-time business as a personal finance writer.

I was reminded of this conundrum reading a personal column by David Sheffield in the Globe and Mail recently. He wrote, “Turning to the wise oracle of our time, Google, I search: When do you know that it is time to retire? Most answers are financially focused: ‘When you have saved 25 times your anticipated annual expenditures.’ One site tackles how to be emotionally ready to quit work: ‘The ideal time to retire is when the unfinished business in your life begins to feel more important than the work you are doing.’”

The changing face of retirement by Julie Cazzin appeared in Macleans. She cites a 2014 survey by Philip Cross at the Fraser Institute. Based on the study, Cross believes Canadians are actually financially—and psychologically—preparing themselves to retire successfully, regardless of their vision of retirement.

“The perception that they are not doing so is encouraged by two common errors by analysts,” notes Cross. “The first is a failure to take proper account of the large amounts of saving being done by government and firms for future pensions …. And the second is an exclusive focus on the traditional ‘three pillars’ of the pension system, which include Old Age Security (OAS), the Canada and Quebec Pension plans (CPP/QPP), and voluntary pensions like RRSPs.”

He notes that the research frequently does not take into account the trillions of dollars of assets people hold outside of formal pension vehicles, most notably in home equity and non-taxable accounts. Also, he says the literature on the economics of retirement does not acknowledge the largely undocumented network of family and friends that lend physical, emotional and financial support to retirees.

Retire Happy’s Jim Yih addresses the question How do you know when it is the right time to retire?  After being in the retirement planning field for over 25 years, Yih believes sometimes readiness has more to do with instinct, feelings and lifestyle than with money. “I’ve seen people with good pensions and people who have saved a lot of money but are not really ready to retire.  Sometimes it’s because they love their jobs,” he says. “Others hate their jobs but don’t have a life to retire to.  Some people are on the fence.  They are ready to retire but worry about being bored or missing their friends from work.”

If you are still struggling with how to finance your retirement, take a look at Morneau Shepell partner Fred Vettese’s article in the March/April issue of Plans & Trusts. Vettese reports that few people are aware it can be financially advantageous to delay the start of CPP benefits. In fact, less than 1% of all workers wait until the age of 70 to start their CPP pension. However, doing so can increase its value by a guaranteed 8.4% a year, or 42% in total. And by deferring CPP, he notes that workers can transfer investment risk and longevity risk to the government.

Tim Stobbs, the long-time author of Canadian Dream Free at 45 attained financial independence and left his corporate position several months ago. In a recent blog he discusses how his focus has shifted from growing his net worth to managing his cash flow. His goal is to leave his capital untouched and live on dividend, interest and small business income from his wife’s home daycare. He explains how he simulates a pay cheque by setting up auto transfers twice a month to the main chequing account from his high interest savings account.

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Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.