Younger Canadians see retirement as “slowing down work,” not ending it: report

The younger set does not envision a future where they will attend their retirement party, receive a gold watch or other parting gift, and then march off into a sunset of worklessness.

Instead, reports Leah Golob, writing for Yahoo! Finance Canada, younger Canadians visualize a “slowing down” of work, rather than a full retirement.

This, her report continues, is having an impact on the purpose of their long-term savings.

“New findings from FP Canada’s Money and Milestones survey suggest a generational shift in how Canadians picture life after work. While half of Canadians are saving for retirement, more than a quarter (26 per cent) are saving for a version of retirement where they `work less,’ compared to over a third (35 per cent) who are saving for retirement where they don’t work at all,” she writes.

The split between the `work less’ and `don’t work at all’ groups is close to 50-50 when the question is put to younger Canadians, her story continues.

“Among those aged 18 to 34, the share saving for semi-retirement and full retirement is nearly identical (21 per cent versus 20 per cent), a sign that younger Canadians are preparing for a more flexible, non-traditional version of retirement,” she reports.

The idea of a retirement that still includes some work seems to be driven by “financial pressure and uncertainty about their long-term security,” the article notes.

“Some do it because they realize that it’s probably unrealistic to have a full retirement due to their current financial situation,” Kelly Ho, certified financial planner at DLD Financial Group, tells Yahoo! Finance Canada. “They’re feeling pessimistic about their own trajectory.”

Certainly, the article continues, today’s “housing and the labour environment are markedly different from the ones their parents experienced in young adulthood.”

Another factor, the article points out, is that of longevity.

“Retirement could stretch from age 60 or 65 to as late as 90 or 95 — a whole other working lifetime,” the article notes, quoting Ho. “Canadians can feel particularly triggered when they hit their 40s, realizing that their working journey could be 20 years or less away,” the article continues.

So, what to do on the savings front, given all these barriers?

“Canadians should track where their money is going and how much they can reasonably set aside. They should also check whether they’re taking advantage of any retirement savings plans offered through an employer,” the article tells us.

Savings, Ho tells Yahoo! Finance Canada, creates an “illusion of choice.” Many don’t choose to save because no one is forcing them to do it – so seeking professional financial advice, and/or setting up an automated savings plan, are recommended, the article adds.

The article concludes by suggesting that going with a `work less’ retirement plan – semi-retirement – can be healthier than the “shock” of full retirement. “Semi-retirement can create a longer, more prosperous life, regardless of whether it’s done out of financial necessity,” Ho states in the article.

When you’re in a company pension plan, your contributions are usually deducted from your paycheque – so cash goes into your nest egg before you have the chance to even think about spending it. Members of the Saskatchewan Pension Plan can automate their savings through pre-authorized contributions from a bank account or credit card.

This “set it and forget it” approach makes savings automatic – all you need to do is to consider ramping up your contributions whenever you get a pay raise.

Check out SPP today!

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Retired financial writer reviews his first retirement moments

Any of us who have retired will remember, perhaps, the “I wonder what retirement will be like” moments we felt as the time clock for the last day at work wound down. We remember our last coffee run for the team, the last train ride home, and so on.

Rob Carrick of The Globe and Mail, a well-read personal finance columnist for many years, is now taking his first steps in the world of retirement.

“You have instant community when you retire – just go to a mall, diner or blood donation clinic early in the morning on a weekday,” he observes.

“Retiring is stepping into a different life with different rules. Let me tell you about a few of them based on personal experience,” he adds.

First, he writes, “regardless of your financial status, you are rich in time” once you are retired. “You can do what you want, when you want. And so, you go to the mall when it’s emptiest,” he adds.

Next, he adds, is the shift away from weekly or bi-weekly paycheques to monthly pension payments.

“Getting paid monthly means new thinking on how to save for big expenses. Right now, I’m carving off some of those monthly payments as soon as they’re received to cover recurring costs such as property taxes, insurance premiums and utilities. We have separate savings accounts for these, each labelled specifically. I find this really helps with organization,” he suggests.

Similarly, you must think a little harder about income taxes.

“Another expense to be covered is income tax, which brings us to one more way retirement differs from your working life. If you have an employer, the correct amount of taxes for your income is taken off the top of your paycheque. You may have a balance owing to Canada Revenue Agency when you file your annual income tax return, but it shouldn’t be anything unmanageable,” he notes.

Now, he continues, “my wife and I both have a 15-per-cent withholding tax applied to our pension payments. I set up yet another high-interest savings account to hold the additional amount of tax we expect to owe after we file our 2025 tax return next spring. With each pension payment, money is automatically transferred to that account.”

Carrick has an interesting take on the term “retirement” itself.

“One more life adjustment when you leave the full-time workforce is how the word `retirement’ sounds to your ears. Telling people you’re retired earns you all kinds of reactions – some envy, some surprise and some disapproval from those who can’t imagine their lives without the fulfilment and status of a job,” he notes.

He concludes with the good news that he’ll continue writing for the Globe on the topic of retirement and other personal financial subjects. We wish him the best in his new role.

While it is possible to self-fund a retirement through disciplined personal saving and a strong investment program, not all of us have the ability to stick with the program or the investment savvy to get started.

That’s where the Saskatchewan Pension Plan comes in. All you need to do is send us contributions, by pre-authorized contribution from a bank account or credit card, via online banking as a “bill,” by cheque – SPP is flexible. What we do is invest those hard-saved dollars in our low-cost, professionally managed pooled fund. You can ramp up contributions as you earn more, and transfer in any amount from registered retirement savings plans you may have.

At retirement, you can choose the security of a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

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Dropping interest rates – great for borrowers, less great for savers

Those of us with mortgages follow interest rates like hockey scores. We’re always keenly aware when rates go up (terror) or down (elation).

But, writes Dale Jackson for BNN Bloomberg, the latest dip in interest rates is not great news for savers.

“While borrowers celebrate a general trend toward lower yields, the reward for savers who want their cash to grow is diminishing,” he explains.

So far, interest rates for guaranteed investment certificates (GICs) are “holding,” Jackson writes. Recent data from ratehub.ca suggests most are in the 3.5 per cent range and are close to four per cent for longer terms in the five-year range.

“It’s a far cry from the five per cent plus yields of two years ago but investors wanting to lock part of their portfolios in the safety of GICs can still grow their investments,” notes Jackson.

And, he adds, today’s rates are far better than in the early 2020s, “when central bank rates were near zero and fixed income, like bonds and GICs, were yielding less that one per cent.”

So, what do risk-averse, fixed income investors do when rates start to trend downward?

Lower rates traditionally have forced retirement investors “into riskier dividend-paying stocks, real estate investment trusts (REITs), and other income-generating instruments,” he explains.

“There’s a big difference. While the principal and interest on GICs is `guaranteed,’ dividend equity investments trade on the broad equity markets and their day-to-day value is subject to its whims. Dividends are cold comfort for retirees who can’t afford to wait out a market downturn and need to sell beaten-down stocks to pay their bills,” Jackson notes.

“The extra risk might be worth it for investors who need to boost returns to meet retirement goals. Big Canadian banks stocks currently pay annual dividends between three per cent and five per cent and have a long history of never cutting their dividends,” he continues. “Big Canadian telecom, and some resource companies, pay similar dividend yields,” he adds.

However, his article concludes, fixed income is still an important part of an investment portfolio.

“A set portion of GICs, and other fixed income products like investment-grade government and corporate bonds, acts as a stabilizer to the more volatile equity portion of a portfolio. With fixed income you can count on more buoyancy when markets tank,” explains Jackson.

“Equity returns are historically higher but fixed income generates reliable returns that compound over time and provide a steady stream of cash in retirement,” Jackson writes. “Retirement investors will generally hold fixed income to maturity, unlike professional bond traders or bond funds, which seek gains by trading existing debt to take advantage of short-term fluctuations in interest rates.”

Fixed income plays an important role for members of the Saskatchewan Pension Plan. SPP’s Balanced Fund has exposure to bonds, mortgages, and private debt as well as Canadian, U.S. and non-North American equities. If you want less exposure to equities, SPP’s Diversified Income Fund is invested 50 per cent in bonds, and 50 per cent in short-term investments.

Any Canadian with registered retirement savings plan room can join SPP. Let us help you grow your savings!

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Majority of Canadians surveyed fear they will never retire: HOOPP and Abacus survey

A surprising 59 per cent of Canadians “believe they will never be able to retire due to their financial situation,” reports Steven Brennan of Money Canada, citing recent research from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data.

As well, the article reports, 66 per cent “of unretired Canadians now expect they will have to continue working after retirement to make ends meet,” and nearly half – 49 per cent – “are worried about outliving their savings.”

“These worries are especially pronounced among renters and homeowners facing mortgage renewals at higher interest rates. For many, homeownership is no longer the clear path to a secure retirement that it once seemed,” the article adds.

Given these concerns, it’s not surprising that the research found favourable views towards workplace pensions, particularly the defined benefit (DB) model which provides a guaranteed lifetime monthly benefit, the article continues.

“Canadians continue to see DB pensions as the most reliable foundation for retirement security. Nearly nine in ten survey respondents (88 per cent) said they would willingly contribute nine per cent of their salary — if matched by their employer — into a DB pension plan in exchange for guaranteed lifetime income in retirement,” the article notes.

“Support for pensions was consistent across age groups: 82 per cent of those aged 18 to 34, 88 per cent of those 35 to 54, and more than 90 per cent of those 55 and older all agreed they would opt in if given the chance,” the Money Canada article tells us.

A “societal benefit” is seen by those surveyed as being possible via improved access to workplace pension programs.

“More than 80 per cent believe it is in the country’s best interest for more people to have access to better retirement savings, and nearly three-quarters say companies could afford to offer workers good pensions if they chose to,” the article explains.

There’s no question that belonging to a pension plan, particularly one where the employer also contributes, is one of the best ways to build retirement savings.

But if you don’t have such a plan, how much should you be saving? The Wealth Awesome blog provides some savings targets, which were originally devised by Fidelity Canada.

By age 30, you should have saved one year’s salary, the blog suggests. By age 40, you should have three years’ salary in your nest egg. At 50, it’s up to six years, and by 60, it’s eight years’ salary, the blog reports.

If you’re saving on your own for retirement, a great partner is the Saskatchewan Pension Plan. With SPP, you decide how much you want to contribute each year – you can start small and ramp up as your income grows. You can also transfer in any amount from any registered retirement savings plans (RRSPs) you may have.

If you are looking for a program that provides guaranteed income, then SPP is the right place. SPP offers a variety of annuity options – all of them provide you with income for life, some provide income options for a surviving spouse or beneficiary. SPP also offers the more flexible Variable Benefit option.

Check out SPP today!

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Tidal wave of boomer retirements about to hit?

Writing in the Financial Post, Pamela Heaven warns us all to brace ourselves for the oncoming, peak wave of boomer retirements – and its impact on the economy.

“For the past 15 years since the first boomers turned 65, an estimated 5.2 million people have left the workforce. Within the next few years, 2.7 million more Canadians, now between the ages of 60 and 64, are likely to join them,” she writes.

That’s going to have a big impact on the labour market, the article continues. In the article, RBC assistant chief economist Cynthia Leach observes that the outflow of experienced workers will have a significant effect. “Canada needs to accept that, viewed from the supply side, it’s headed toward an even structurally tighter labour market within a few years,” she states in the article.

One reason why boomer retirements will have a labour force impact is that the country’s population is no longer growing at a fast clip, the article continues.

There’s been a “clampdown” on immigration, and as well, the article notes, “Statistics Canada reported that the country’s population growth hasn’t been this slow since the pandemic lockdown and RBC expects near-zero growth in 2026 and 2027 under the government’s `drastically lower targets.’”

What, the article asks, “does this mean for the economy?”

“Some industries and regions will be hit harder by labour supply pressures than others. Nine of 21 sectors have more than a quarter of employees now over 55, a share that tops the overall average of 21 per cent. In fishing and agriculture, the percentage of workers over 55 rises to 40 per cent,” Heaven writes.

“Regionally, British Columbia, Quebec and the Atlantic provinces have a higher share of older people,” she adds.

So, less workers available to fill jobs vacated by retiring boomers, and less immigration – are there other impacts from boomer retirements? Let’s read on.

“As people age annual health care costs to the state rise, from about $3,400 at age 40 to $10,000 at 70 and more than $36,000 at 90,” writes Heaven, quoting data from RBC. “So far, (RBC) estimates Canada has only seen about 11 per cent of the additional health care costs of the aging baby boomers — with the lion’s share to come.”

Heaven then explains that there will soon be fewer workers “to shoulder this burden” of rising healthcare costs. She refers to this as a “rising seniors’ dependency ratio.”

Thankfully, the article ends with talk of solutions to the problem of boomers departing the workforce.

“There are ways to bolster the workforce domestically such as training, better labour mobility and recruiting from demographic groups with lower participation rates,” Heaven writes, quoting from Leach. “But the biggest gains could be achieved by increasing productivity and capital intensity in the overall economy,” she concludes.

A route to having more independence in retirement is to have your own savings – and income from those savings. Be sure to sign up for any retirement program offered at your workplace.

If there isn’t such a program, then the Saskatchewan Pension Plan may be just the ticket for you. It’s a do-it-yourself, voluntary defined contribution program – you decide how much you want to save, or transfer in from your registered retirement savings plan. SPP does the rest, investing your precious savings loonies in a low-cost, professionally managed pooled fund.

Uniquely, SPP offers an in-plan annuity option – you can convert some or all of your savings to an annuity without having to move your money out. Another option that’s available is the more flexible Variable Benefit option.

Check out SPP today!

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The tricky part of retirement – turning savings into income

You’ve got to the point where you are ready to retire – you’ve saved up a nice nest egg. But now comes the tricky part, turning that lump sum of money into income you can live on.

A recent Investopedia article took a look at what it calls “the part of retirement planning no one talks about – turning savings into income.”

“Navigating the math of decumulation –how to draw down savings without running out — is one of the biggest blind spots in retirement planning. And while lifetime income tools are gaining traction, the foundation of a secure retirement still lies in a smart withdrawal strategy — one that balances your need to live well today with the reality of funding a future that could last decades,” the article begins.

It’s basically flipping the script for most people – you are now trying to sustainably spend the money you just finished saving for years.

“After decades of saving, people are suddenly expected to figure out how to spend it down in a way that lasts,” states Mark Stancato, founder of VIP Wealth Advisors, in the article. “There is no built-in structure, no paycheque, and considerable uncertainty.”

The risk, the article adds, is “over-withdrawing in the early years, or being overly conservative and losing purchasing power over time.”

One route to deal with retirement income needs would be to structure your portfolio so that it “builds a foundation of guaranteed income,” states Stancato in the article. For instance, fixed expenses might be covered by a “core floor” that includes government income from the Canada Pension Plan and Old Age Security, as well as any workplace pension benefits you might have that deliver a monthly pre-determined income.

“From there, you can structure your income sources and assets using what’s known as a bucket strategy. Short-term spending needs are covered with cash or bonds, while medium- and long-term needs can rely on equities and other growth-oriented investments, effectively giving your portfolio room to grow while still supporting your near-term liquidity needs,” the article continues.

Another way to guarantee how much money your investments will generate is through an annuity, the article explains.

“Annuities, which turn a lump sum into a predictable monthly paycheque for life, are often the first option considered,” the article points out. A recent Nuveen study in the U.S. found that 90 per cent of members of 401 (k) plans (similar to a registered retirement savings plan or defined contribution plan) “would consider using fixed annuities to create a steady retirement income.”

“Turning a nest egg into retirement income requires more than just taking withdrawals — it requires intention, strategy, and adaptability. “The biggest mistake people make is treating every dollar the same,” Stancato states in the article. “You need to know what each account is for and when you will need it.”

Members of the Saskatchewan Pension Plan have the option of an annuity when they decide to retire. SPP’s Pension Guide provides full details on the plan’s life only annuity, joint and last survivor annuity and refund life annuity.

Check out SPP today!

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Top retirement countries for Canadians

The True North is, as we all know, Strong and Free, but can be cold in the winter, and expensive to live in.

So the folks at Money Canada have put together a list of the top countries Canadians might want to move to in retirement.

“When determining the top 12 best places to retire in the world, we considered factors like the cost of living, political stability and infrastructure, healthcare quality, safety, things to do and see and proximity to Canada,” the article begins. “We also looked at the ease and requirements involved in getting a retirement visa/long-stay visa. When doing our research, we consulted a variety of governmental sites, as well as local and international websites.”

At the top of the list is Panama.

“Panama is a wonderful place to retire, thanks to its unique combination of modern amenities, affordable cost of living, fascinating culture and tropical beauty. The country is especially attractive to those who prize an active lifestyle thanks to an abundance of outdoor activities ranging from hiking and birdwatching, to surfing and snorkeling along the coast,” reports Money Canada.

Portugal, the article continues, “boasts plenty of sunshine, affordable living costs and incredible cultural assets. The Algarve region, in particular, is popular with retirees for its beautiful beaches, charming towns and laid-back lifestyle.”

In Thailand, “few can resist the destination’s beguiling mix of modern amenities and ancient attractions and traditions.” France, the article enthuses, “has it all: a highly regarded food scene, ancient, atmospheric villages brimming with history, one of the most storied capital cities in the world and a never-ending selection of highly acclaimed museums and galleries to whittle away the hours.”

Mexico offers “proximity to Canada…  (a) temperate climate and (a) lower cost of living. Mexico is a top pick for Canadian citizens of retirement age,” Money Canada reports. Beautiful Malaysia is a country where “the cost of living is very low, healthcare is top notch and housing is affordable.”

Italy “offers an enviable mix of culture, awe-inspiring landscapes and affordability,” and Costa Rica “is well-known for its unparalleled natural beauty that showcases white-sand beaches, verdant rainforests, jaw-dropping volcanoes and acclaimed national parks.”

Rounding out the list are Spain, “with its delightful Mediterranean climate,” Greece, “one of the best places to retire in the world on a budget,” Switzerland, which boasts “one of the highest standards of living in the world,” and Ecuador, which “boasts some of the most singular and breathtaking landscapes in the world, including Galapagos, a world UNESCO site.”

It’s always nice, especially when you are shovelling the walkway in mid-January, to think of tropical weather in faraway lands. But whether you travel in retirement or stay put here at home, you’ll need some savings to live on.

The Saskatchewan Pension Plan is an open, voluntary defined contribution plan that any Canadian with registered retirement savings plan room can join. A feature of SPP is that you can consolidate any other RRSPs you have within SPP. Rather than having bits and pieces of retirement income from multiple sources when you retire, your income will all come from one place.

SPP’s retirement income options include a monthly annuity payment for life or the more flexible Variable Benefit.

Check out SPP today!

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Consider these steps to help you afford retirement – even if you are starting late

Gen Xers, reports GoBankingRates, are a “scrappy” bunch who are raising kids and caring for parents against a backdrop of “inflation and other rising expenses.”

A Lending Tree survey, the publication adds, suggests that 70 per cent of Gen Xers will “need all the help they can get to be able to retire.”

But the article lists eight things this group can do to help them to arrive safely in the Land After Work.

First, the article says, you need to understand “your own cost of living, health and goals” when figuring out how much you’ll need – not some generic “retirement blueprint,” states Tyler Meyer, CFP, and founder of RetireToAbundance.com.

Second, he adds. “don’t think of retirement as an all-or-nothing finish line.”

“For many people, retirement may look like a blend of part-time work or flexible work with investment income instead of a complete stop,” the article notes. “That shift in thinking instantly lowers the savings target and opens up more possibilities,” Meyer tells GoBankingRates.

The article is aimed at an American audience, but the third step applies to Canadians as well – be sure to contribute as much as you can to any workplace pension, or registered retirement savings plan, or Tax-Free Savings Account. If you have unused room, begin to fill it up, the article suggests.

If debt is a barrier to your saving, pay it off, the article tells us. Pay off the debt with the highest interest rate first, the article advises.

Think about side hustles that will bring in money when you are retired, rather than simply the idea of having to live on less, Meyer tells GoBankingRates.

“I have seen clients successfully turn interests such as woodworking, photography, fishing and gardening into steady income streams,” he states in the article.

Don’t judge yourself “for not being prepared for retirement,” states Ashley Stearns of Michigan’s Community Financial Credit Union. “Realize you are not alone,” she tells the publication, noting that on average, Gen Xers in the U.S. carry $9,557 USD in credit card debt, surpassing even boomers.

“The most important thing is to start. With the right support and a clear plan, Gen X can rewrite the narrative on debt,” she states in the article.

Another idea, the article continues, is to get the help of a money coach or financial adviser to help you develop “a workable retirement plan.”

The article concludes with a three-step approach to freeing up money for retirement savings, developed by Stearns:

• “Begin by tracking your expenses for a month to identify potential areas to cut and shift to retirement.”
• “Analyze your spending habits.”
• “Make small changes one at a time.”

Many members of the Saskatchewan Pension Plan take advantage of SPP’s automatic contribution feature. SPP permits you to make pre-authorized contributions from your bank account or credit card. By going this route, you are saving money before you have the chance to spend it. SPP will take those contributions and grow them in our low-cost, professionally managed pooled investment fund.

When it’s time to turn savings into income, your options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit option.

Check out SPP today!

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In the U.K., Gen Z confident about retirement, despite not saving or having pensions

Despite “the high cost of living, stagnating wage growth and lower job security,” a surprising 38 per cent of British Gen Zers say they are “confident in their financial future,” reports This is Money.

The data, compiled by U.K. pension firm M&G, found that only 17 per cent of those aged 45 to 54 shared that confidence, the publication adds.

“Although almost half of Gen Z don’t currently have a workplace pension, a fifth still expect to be able to retire when they are in their 50s,” the article reports, adding “this is despite the fact their pension age is likely to be at least 68.”

This suggests, the publication continues, a disconnect among younger folks about how much money they’ll need when they are retired, and when to start saving.

“It suggests young people’s optimism might be down to a lack of information about how much they need to save for retirement — and how much of a difference it can make if they begin saving earlier in life,” This is Money adds.

Alarmingly, only 30 per cent of Gen Zers asked fear running out of money in retirement, compared to 44 per cent of those “in their late 20s and early 30s” and 52 per cent of those aged 35 to 54, the publication continues.

 “It’s refreshing to see such positive attitudes from Gen Z towards their financial futures, but optimism alone isn’t enough to guarantee a comfortable retirement,” M&G’s Anusha Mittal tells This is Money.

There should be more focus on long-term retirement savings, even for the young, the article adds.

“As few as eight per cent of 18 to 24-year-olds say that building a pension pot is one of their financial priorities. Some 49 per cent said a priority was to spend money on things they enjoy,” the article explains.

Indeed, retirement saving may not be much of a priority for younger Britons, the article notes.

“Most of my savings go towards life experiences, especially travel, which I see as a valuable way to spend money while I am still young,” assistant psychologist Cynthia Wong, 27, tells This is Money. “I believe that wealth is defined by meaningful experiences, and I prioritize them over saving for things that feel distant like retirement,” she states in the article.

Wong goes on to say that saving for retirement may become more of a priority for her later on.

M&G’s Mittal contends that now is the time to start retirement saving.

“Unless Gen Z’s enthusiasm is matched by action — including better understanding of where their money is going, how much they’re saving, and whether it’s enough — they could be sleepwalking into a ‘too little, too late’ scenario when it comes to retirement readiness,” she states.

Workplace pensions are a great thing, but are becoming scarcer, forcing many to save on their own for their retirement. If you’re in this category, the Saskatchewan Pension Plan may be the savings partner you’ve been looking for. Open to any Canadian with registered retirement savings plan room, SPP does the heavy lifting for you, investing your savings in a professionally managed, low-cost pooled fund. At retirement, your income options include getting a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

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There’s no question we are living in uncertain times – how will the trade war and its tariffs impact investing and Canada’s job markets?

We may not yet know exactly where things will land, but – according to a Money Canada piece by Nicholas Sokic – Canadians “are staying diligent in saving for retirement.”

In fact, he writes, citing a report from Sun Life, retirement savings contributions are, on average, at $9,500, “a six per cent increase from 2022.”

“The ‘buy Canadian’ sentiment that gained popularity earlier this year may also be having an impact on how people are investing their money. While some are adjusting their finances, it’s encouraging to see that they aren’t reactively pulling their money out of the market,” Sun Life’s Dave Jones, senior vice-president, group retirement services, states in the article.

“In the first quarter of 2025, members moved their money out of U.S. equity funds at the highest rate witnessed since the beginning of the COVID-19 pandemic. While more people are reducing their risk exposure, they are not withdrawing their money from their plans. Withdrawal rates remain stable when compared to past years,” the article continues.

Other findings outlined in the article:

• 70 per cent of plan members “who engaged with an advisor” were seen as being more likely to take action with their finances than those without such help.
• 42 per cent of plan member balances are in “target date funds,” a type of investment that becomes more conservative (and less exposed to equities) as the member ages.
• Workplace pension plan members are, on average, retiring “two years earlier than the average Canadian.”
• Average workplace pension plan balances in the Sun Life survey were at $94,220.

The idea that Canadians are saving more these days is also captured in an article on the Statistics Canada website.

“Recent analysis from Statistics Canada on the `third pillar’ of the retirement income system — in addition to government pension plans — hows that there has been an increasing share of families’ contributions to one or more of the three registered savings accounts: Registered Pension Plan (RPP), Registered Retirement Savings Plan (RRSP), and the tax-free savings account (TFSA),” the article begins.

In 2009, just over half of Canadian families contributed to one or more of these savings vehicles – a rate of 52.3 per cent,” the article continues. By 2022, that percentage had jumped to “nearly three in five families (58.1 per cent),” the article adds.

TFSAs increased in popularity in the 2009 to 2002 period, while contributions to RPPs and RRSPs “stayed flat, or declined over the same period,” the article notes.

These articles show, it would seem, that Canadians see that saving for retirement is important, even if the times are challenging.

If you have a retirement savings program through your workplace, be sure you are signed up and contributing – often there can be an employer match.

If you don’t have a workplace plan and aren’t sure how to go about investing for retirement on your own, the Saskatchewan Pension Plan may be just the ticket. With SPP, you decide how much you want to save, and SPP’s team does the rest. Your savings dollars will be invested in a low-cost, professionally managed pooled fund.

When it’s time to depart from the workforce, your options for turning your savings into income include getting a lifetime monthly annuity payment from SPP, or the more flexible Variable Benefit.

Check out SPP today!

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