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Mar 7: What’s the difference between active and passive management?

March 7, 2024

We read all the time about “active” and “passive” management of investments. While it sounds like one type is for those that jog and work out, and the other is for people comfy on their couches, the actual meaning is a little different. Save with SPP had a look around to find a good explainer or two.

Writing for Bankrate via AOL, Dr. James Royal writes that “active investing is what you often see in films and TV shows. It involves an analyst or trader identifying an undervalued stock, purchasing it and riding it to wealth.”

“It’s true – there’s a lot of glamour in finding the undervalued needles in a haystack of stocks. But it involves analysis and insight, knowledge of the market and a lot of work, especially if you’re a short-term trader,” he continues.

On the other hand, he notes, “passive investing is all about taking a long-term buy-and-hold approach, typically by buying an index fund. Passive investing using an index fund avoids the analysis of individual stocks and trading in and out of the market. The goal of these passive investors is to get the index’s return, rather than trying to outpace the index.”

So the Coles Notes on this are as follows – an active management approach involves you (or an advisor) actually picking investments that you think will beat the market’s returns. Passive means you aim to duplicate the market’s returns, usually by buying index funds that consist (unsurprisingly) of all the funds on the various index.

So, is one approach better than the other?

A recent New York Times article suggests that over time, the passive approach tends to work out the best.

“Over the last 20 years, stock pickers have had a dismal record. Most haven’t come close to beating the overall stock market,” writes Jeff Sommer.

“But occasionally, there are exceptions. In some periods, stock pickers rule, and the start of this year was one of those times. In fact, it was the best January for actively managed stock mutual funds since Bank of America began compiling data in 1991. It wasn’t just that they turned in handsome returns for investors. The entire stock market did that. The S&P 500 and other stock indexes set records during the month,” he notes.

The article goes on to say that stock pickers seem to do best when markets are doing the worst – such as the 2008/9 credit crisis. Passive investing does well at most other times, he points out.

A Forbes article on the topic makes the point that active investing requires much more of an effort.

“You can do active investing yourself, or you can outsource it to professionals through actively managed mutual funds and exchanged traded funds (ETFs),” the article notes. However, the article notes, you need to be watching your holdings all the time.

“Without that constant attention, it’s easy for even the most meticulously designed actively managed portfolio to fall prey to volatile market fluctuations and rack up short-term losses that may impact long-term goals,” Forbes reports. “This is why active investing is not recommended to most investors, particularly when it comes to their long-term retirement savings.”

On the contrary, “because it’s a set-it-and-forget-it approach that only aims to match market performance, passive investing doesn’t require daily attention. Especially where funds are concerned, this leads to fewer transactions and drastically lower fees. That’s why it’s a favorite of financial advisors for retirement savings and other investment goals.”

No one likes to talk about investments unless they are winning. It’s like bingo – you hear when your friends win the big jackpot, but otherwise, you don’t. We have heard horror stories from friends who went for the home run with things like Bre-X, or Nortel, or cannabis stocks, and of late, bitcoin.

Whatever approach you personally choose for your own investments, we recommend that you seek the advice of a professional investor. The portfolio you construct on your own may be fine, but will almost always benefit from the oversight of a pro.

If you’re a member of the Saskatchewan Pension Plan, you are already benefitting from professional investment advice. The SPP balanced fund returned 7.73 per cent, on average, since its inception more than 35 years ago. While past returns are of course no guarantee of future rates of return – no one can predict the future – it’s nice knowing that SPP’s investing history has been so positive. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Feb 29: Office vacancy rates high, but many of us will be returning to office work soon

February 29, 2024

Among the many strange aspects of life during the recent pandemic was the “work from home” boom. Office buildings stood empty, nearby convenience stores and food courts closed, and there was no “rush hour” traffic update on the morning news. Everyone was at home.

But that may be changing.

A recent CTV News report sums up how different things were during the pandemic.

COVID-19 caused “a mass exodus to remote work that had never been seen before,” the broadcaster reports. In 2016, “only seven per cent of workers in Canada said they `usually’ worked from home,” the article notes. As recently as early 2022, that number had soared to 24.3 per cent, or nearly one quarter of all workers.

But people are starting to “trickle” back to the office, CTV reports. The “working exclusively at home” number dropped to 20.1 per cent in May of last year, although there were still 11.7 per cent of workers in “hybrid” work arrangements (some hours at home, some at the workplace) as recently as November.

There are a couple of issues that have arisen due to remote work, reports Global News.

First, there seems to be a disconnect between what employers want – a return to work in the office – and what employees want – to be able to continue to work from home.

“A quarter of Canadians who usually work from home would like to work from home more, while one in eight would like to work from home less — which the report says is a challenge for employers,” Global reports, citing information from Statistics Canada.

“A mismatch between employees’ preferences for telework and the hours they work from home may negatively affect employee retention,” reports Global, again citing the Statistics Canada report.

The second issue is that offices in downtown centres, such as Toronto, are experiencing record vacancy rates.

According to the Financial Post, “the vacancy rate for downtown Toronto office buildings reached a record high at the end of last year as a flood of largely empty space from newly completed projects hit the market.”

“The downtown office vacancy rate in Canada’s financial capital rose to 17.4 per cent as nearly 58,100 square metres of new space came to market during the fourth quarter, according to data released Tuesday by brokerage CBRE Group Inc.,” the Post reports.

“The poor performance of the Toronto market helped push Canada’s national downtown vacancy rate to its own record last quarter, hitting 19.4 per cent, the data show,” the article notes.

COVID-19 is cited as the chief reason for the vacancies, as well as the fact that major office construction projects can take years, the article adds.

Because office towers take many years to construct, Toronto’s still working through office projects that began before the pandemic.

“With the city accounting for nearly half of all new office construction nationwide, Canada’s net-absorption rate, or the pace that office space gets leased when it becomes available, would have been positive without the impact from Toronto’s new supply, the data show. Instead, that rate was negative in the period,” the article concludes.

Some observers fear that the business of building and leasing office space may have been permanently damaged due to the COVID-related work-from-home trend.

The Canadian Press reports that “the COVID-induced work-from-home shift has ravaged the office market as many employers re-evaluated their office footprint. Firms have also looked at reducing their real estate holdings as a way to rein in expenses to help cope with the current weaker economy.”

“It is likely that 10 to 15 per cent of demand has been permanently destroyed with (work-from-home) trends,” Maria Benavente, vice-president and real estate-focused portfolio manager at Dynamic Funds, tells The Canadian Press.

This strange, once-in-a-lifetime (hopefully) situation may take a while to play out. It will be interesting to see if the trickle of “in-office” workers begins to become more of a river, correcting the problem of office vacancy and breathing life into downtown businesses that are supported by office workers. Or, will people fight for the right to work from their dining rooms? Stay tuned!

Wherever you work, saving for retirement is important. If you are lucky enough to have a workplace savings program, be sure you are taking part to the maximum. If you don’t, and are saving on your own for retirement, you may want to consider joining the Saskatchewan Pension Plan.

Open to any Canadian with registered retirement savings room, SPP’s voluntary defined contribution plan delivers expert investment management at a low cost, using a pooled fund. SPP will grow your savings, and when it’s time to put work behind you, you can choose between a lifetime annuity payment each month, or SPP’s Variable Benefit program. Find out why SPP has been helping Canadians build secure retirements since 1986 – check them out today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Feb 15: You can turn the clutter invading your home into cash

February 15, 2024

There’s a room in our basement that we rarely ever enter, which we euphemistically call the “storage room,” that has 50 or more boxes full of accumulated clutter from past dwellings in Toronto, Waterloo, Barrie and beyond. There are also old books, toys, games, records, cameras, Palm Pilots, and other once-cool stuff that now is unneeded and unwanted.

Save with SPP, finding the prospect of going through each box overwhelming, took a look around the Interweb for ideas on how to convert some of this clutter into easier-to-store cash, while reclaiming some floor space.

Over at the Go Banking Rates blog, a number of clutter-cashing ideas are on offer.

The blog recommends a “triage” of your clutter collection to sift out any items of value.

“Go through each room and sort items into categories like clothing, electronics, books, and collectibles. Be ruthless in your selection; if you haven’t used it in a year and it doesn’t hold sentimental value, it’s likely clutter,” the blog advises.

Next, look up online to find the value of your potential “sellables,” the blog adds. See what similar items are going for on Facebook Marketplace, eBay, or (in Canada) Kijiji.

List your items on a suitable platform – the blog recommends eBay for collectibles, and Facebook for furniture and electronics “as you can avoid shipping costs.”

Anything you plan to sell online should be cleaned, repaired, and captured via a good, clear photo and well-written, clear description, the blog notes. Be sure, the blog concludes, that you are offering your items at a fair price, account for any fees your platform charges (example – shipping outside Canada) and be willing to negotiate. With Facebook sales, arrange to meet the buyer “in well-lit public places and consider bringing a friend,” the blog advises.

“With a little effort and savvy, you can turn your unused items into a valuable resource. Whether it’s an old guitar, a stack of vintage comics, or a designer dress you never wore, there’s likely a market for your once-loved items,” the article concludes.

The Frugal Farm Wife blog provides a few more ideas.

While it takes a bit of effort to cash in on your junk, it’s a sound idea to trade “a pile of stuff you no longer want or need for cash to spend on things you DO want or need,” the authors note.

Yard or garage sales, the article says, are the number one way “to get rid of stuff… they’re great!”

Set low prices for the bargain-minded yard/garage shopping set, advertise (via flyers or community Facebook, including some photos of what’s going on sale), and make your sale “easy to navigate” by grouping like items together, having tables to lay out clothes and larger items, etc.

Another approach, the article continues, is to “sell to consignment shops.” This is good for name-brand clothing that is in excellent shape, the article advises, and your clothes must be spotless.

Consider bringing any unwanted antiques to an antique store, the article notes.

At the Thrifty Frugal Mom blog, a lot of the same ground is covered, but the blog notes there are also online yard sales that can be set up via Facebook.

“To find one, simply search Facebook with your area’s name and either yard sale or resale and likely something will pop up. If not, create one yourself- but be prepared for it to become a hopping, popular place,” the blog notes.

“While you can sell big-ticket items here, I’ve found these groups to be a great place for selling smaller items and kid’s clothing. In fact, two groups that I’m part of are specifically for kid’s stuff.”

We can add a couple more thoughts from family experiences. The market for used 35 mm film cameras seems to have ticked up of late, and many camera stores will purchase your old cameras and lenses for a few bucks. There are several local stores that will pay cash for old vinyl records. And if you have any old collectible cards, there are card shops that will help you convert them into cash.

Depending on how serious your clutter addiction is, this is a process that could take time. But at the end of the day, you’ll have less clutter and more cash.

A nice place for some of that extra cash to be stored is the Saskatchewan Pension Plan. Any Canadian with registered retirement savings plan room can join SPP, and take advantage of its low-cost, professionally managed and pooled investment fund. And when you retire, your options include converting savings to a lifetime monthly annuity payment, or the flexibility of SPP’s Variable Benefit option, where you decide how much income to withdraw – and when!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Feb 1: With inflation squeezing Canadians, charitable giving is in decline

February 1, 2024

There’s no question that this era of inflation – where interest rates have jumped more than they have in decades — is squeezing Canadians.

One category that is suffering from this period of tight spending is charitable giving.

According to the Kingston Whig-Standard, “the number of taxpayers who gave to charitable causes dropped to 17.7 per cent in 2021 — a 20-year low, according to the Fraser Institute’s annual report measuring generosity in Canada,” the Whig reports. “Charitable giving hit a high in 2004, with 25.4 per cent of tax filers making donations, but gifts to charity have dropped each year since. Twenty-three per cent of taxpayers gave to charity in 2011,” the newspaper adds.

Compounding the problem is that those who do give are also giving less, the Whig continues. Donations represented 0.55 per cent of income in 2021, down from 0.58 per cent in 2001.

“The data shows Canadians are consistently less charitable every year, which means charities face greater challenges to secure resources to help those in need,” states the Fraser Institute’s Jake Fuss in the article.

The folks at Canada Helps an organization that assists charities with fundraising and has helped raise a whopping “$2 billion in giving” since its inception 23 years ago, see the decline in giving as a serious societal problem.

In their 2023 Giving Report, the organization notes that “the rising cost of living and prolonged impacts from the pandemic have more Canadians in need of charitable services. At the same time, fewer Canadians are making charitable donations.”

Canada Helps notes that while two in 10 Canadians “expect to use or are already using charitable services within the next six months,” the percentage of Canadians that give “is down five per cent in the last 10 years.”

The report notes that:

  • 40.3 per cent of charities “have experienced a lasting increase in demand” since the pandemic began
  • 55.2 per cent of charities have fewer volunteers
  • 57.3 per cent of them can’t meet current levels of demand
  • 41.8 per cent are worried about attracting more volunteers

What sorts of things are charities doing? A recent MoneySense article looked at what they called the “top 100” charities in Canada, and the impressive work they do.

According to the article, charities help distribute food via food banks and community kitchens, help deliver education programs, support people struggling to break addictions, provide rural communities with safe water supplies, help lower income folks receive specialized healthcare, and so on.

We all realize things are tougher than they have been. If you are in a position to support a charitable cause or two, consider doing so at an increased level this year. And if you don’t have cash to spare, perhaps you can consider volunteering, as so many organizations are in desperate need of such help.

Did you know that the Saskatchewan Pension Plan’s Variable Benefit option is open to all Canadian SPP members? This flexible retirement income option puts you in control of how much you want to withdraw from your SPP account, and when.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Jan 11 – How to get started, when it comes to investing

January 11, 2024

Everyone talks about investing on their own for the long term. But what’s involved?

Save with SPP took a look at a few articles on getting started in investing, and while this is a huge topic that has spawned a library-filling collection of books and major education programs across the country’s universities and colleges, we hope these few tips will help newbies think about how to get started.

At the Savvy New Canadians blog, the first recommended step is to find yourself “an online brokerage account,” which the blog says makes it “much easier to trade stocks.” These days, the article notes, there are online brokerages with very low trading prices, and some with no fees at all.

The article explains that stocks, bonds, exchange-traded funds (ETFs) and mutual funds can all be easily traded through an online brokerage.

You’ll also have to decide what type of investment account you want. A registered account (such as a registered retirement savings plan) is “used to save for retirement and defers taxes on your earnings until you make withdrawals.” A Tax Free Savings Account (TFSA) “offers an opportunity to invest and earn tax-free returns forever.” A non-registered or cash account is the other option – you pay taxes on income and capital gains.

OK, we have an account, we have a basic knowledge of types of investment and savings vehicles. What’s next?

First, advises Investopedia, figure out what your “tolerance for risk” is.

“Stocks are categorized in various ways, such as large capitalization stocks, small cap stocks, aggressive growth stocks, and value stocks. They all have different levels of risk. Once you determine your risk tolerance, you can set your investment sights on the stocks that complement it,” the article explains.

In other words, are you going to be OK if the value of the security you buy goes up and down by 10 or 20 per cent in the short term? If you aren’t, you may be less interested in stock-related investments, and more interested in less volatile, fixed income-type investments.

Goal setting is important as well, the article notes.

“If you’re just beginning your career, an investment goal could be to increase the amount of money in your account. If you’re older, you may want to generate income as well as grow and protect your wealth,” the article notes.

Finally, the article talks about three investment styles.

If you are confident you know enough about the markets to go it alone, that’s an option, the article notes. “Traditional online brokers allow you to invest in stocks, bonds, ETFs, index funds and mutual funds,” the article tells us.

Alternatively, the article says, you can find yourself “an experienced broker or financial advisor” to help you make your decisions. “This is a good option for beginners who understand the importance of investing, but may want an expert to help them do it,” the article adds. A third, newer option is to use a robo-advisor, which is “an automated, hands-off option that typically costs less than working with a broker or financial advisor. Once a robo-advisor program has your goals, risk tolerance levels, and other details, it automatically invests for you.”

Investment guru Warren Buffett has a couple of memorable bits of advice on investing. His giant firm tends only to invest in businesses where they (Buffett and his team) feel they understand how the business works. He also likes the idea of investing half your money in index funds, and the other half in safe, government backed securities.

As mentioned, this is a very broad topic, so find out as much as you can before you enter the choppy waters of investing, and do consider getting professional advice to get started.

Alternatively, if you’re saving for retirement and want expert help, consider joining the Saskatchewan Pension Plan. All you need to do is contribute savings, the experts at SPP will handle the investment decisions at a very low cost in a professionally managed, pooled fund.

At the end of your worklife, your options for retirement income include getting a lifetime annuity (a monthly payment for life) or the flexibility of deciding how much income you want to receive through our Variable Benefit. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Dec 14: Everyone’s going crazy for pickleball

December 14, 2023

We first heard about pickleball from one of our line dancing friends who is a tennis player. This was a few years ago. There was something new, she said, sort of like tennis mixed with ping-pong, played on a half-tennis court with a hard bat and a sort of wiffle ball.

Huh, we said to each other.

It was more recently that we began to hear that pickleball, perhaps like The Macarena dance of decades ago, had become a craze (as well as a recreational sport) not just for seniors but for players of all ages. Save with SPP took a look around to see what’s causing all the excitement.

“There is a sport that has taken off in Canada,” writes Shireen Ahmed for CBC Sports. “Neighbourhood parks are full of enthusiastic athletes, but the sport’s popularity has become polarizing on many courts: the centre of said drama is pickleball.”

The game has become so popular that it is crowding out other activities, she explains.

“There are noise complaints, annoyances to local residents and also a movement to reduce it because it is pushing children away from playgrounds. Is pickleball really threatening the suburban happiness of Canadians? Is it a sport or a leisure activity? Why are people so mad about it,” she asks.

It’s not an all-new sport, she writes – it was first played in this country in the 1970s and the first pickleball courts in Canada were built in Vancouver in 1984. But the sport has taken off, Ahmed reports, and there are now 1.37 million players – known as “picklers” – in Canada. There is even a pro league that has attracted Canadian tennis star Eugenie Bouchard, she writes.

While it is a bit noisy (the plastic ball hitting the ground and bats) Ahmed concludes that it was easy to pick up, and fun.

Down in the U.S.A., reports Inc., pickleball is now more popular than tennis.

The article expands on the idea that pickleball is easy to pick up.

“Pickleball’s triumph stems from its careful blend of novelty and familiarity. Despite introducing a new and exciting activity, the sport cleverly utilizes the existing infrastructure of tennis courts and incorporates rules reminiscent of its well-established counterpart. This lesson for brands underscores the idea that innovation need not be revolutionary. Offering a fresh twist on a familiar experience can captivate consumers without alienating them, creating a perfect balance. Draw people in with something new, but don’t scare them away,” the article tells us.

“The low barrier to entry–affordable equipment, ordinary athleticism, existing courts, and the simplicity of the game–make it easy for individuals of varying ages and skill levels to embrace the sport,” the article adds.

Reminds us of when soccer began to really take off decades ago – equipment costs, compared to sports like football or hockey, were much lower.

The game’s popularity is taking off so fast that the sports industry is struggling to keep pace, reports Yahoo! Sports.

“The industry is still struggling to keep pace with pickleball’s surging participation numbers. But small businesses and large corporations alike are catching up, while municipalities and private clubs race to build courts across the country,” the article reports. A November pickleball championship was expected to draw 50,000 fans, 4,000 amateur players and 200 pros, the article continues.

“You’re going to see pickleball everywhere next year,” Adam Franklin, president of Franklin Sports, the 77-year-old sporting goods company, tells Yahoo! Sports. “I still think we’re really in the early days of how this is going to look in the U.S. landscape.”

Maybe we’ll have to give this a try!

Perhaps some of the money saved on sporting equipment by the relatively low-priced activity/sport of pickleball can be directed towards your retirement savings program. If you don’t have a program through work, and are saving on your own, a great partner is waiting to help you – the Saskatchewan Pension Plan. All the dollars you contribute to your SPP account will be professionally invested in a low-cost, pooled fund. At retirement, you can choose such options as a lifetime annuity, or SPP’s Variable Benefit, now available to all members.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Looking for ways to save on your grocery bill

November 27, 2023

There are two kinds of saving – the kind where you put away a little money before you spend it, and the kind when you spend a little less (and thus, create a few extra bucks to save).

Groceries remain expensive here in the fall of 2023, so Save with SPP took a look around the Interweb to find out if people have any suggestions on how we all can save at the checkout.

According to the Narcity blog, the art of “couponing” is one way to go about it.

Narcity spoke to “well-known couponer” Kathleen Cassidy for her top tips. She tells the blog that it is important to “shop the flyers,” and find out “what is on sale this week… what is a great stock-up price.”

If there’s a great deal on something like sausages, then “buy a couple of packs… throw them in the freezer. The next time they’re not on sale, you’re prepared for that.”

Shop with a list, she advises. “I feel like a lot of Canadians just kind of blindly go into the grocery store every week,” she tells Narcity. “Especially if you go when hungry, you’re just throwing stuff into your cart.”

Other tips include price matching – if you know an item is on sale elsewhere, the store you’re shopping at will no doubt match it, the article explains. Finally, the article advises grocery shoppers to take advantage of any loyalty programs or points offered by the grocer.

The CBC offers up a few more ideas.

“Reconsider beef,” the broadcaster advises. Currently, beef “has seen some of the biggest price increases in the grocery store.” Chicken and pork cost less these days, so consider switching some meals to these other sources of protein, the article suggests.

The article says that some fresh items have had little price impact from inflation – you can get good prices on grapes, cantaloupes, avocadoes and potatoes, and in fact all of these items have dropped in price of late, the article adds.

By comparison, canned goods are up “by double digits” in the last year, the CBC notes.

On the salad side, while lettuce is up in price, “cabbage remains a bargain,” and cucumbers are not going up either. Consider “switching up” your salads by adding cukes and tomatoes, which also have not shot up in cost.

Bulk shopping is always a way to cut costs, reports The Daily Hive. Toiletries, and “pantry items” such as “pasta, canned products, granola bars and cereal” can be bought in bulk and store well, the article notes.

Meat, milk, cheese and butter can be bought in bulk when on sale, and they all freeze well, the article notes.

And of course, the article adds, be sure to watch for coupons, save them, and have them handy at the grocery store.

Another article from The Daily Hive provides a list of the best types of credit cards to buy groceries with.

Some cash-back credit cards, the article notes, will pay you two per cent in cash for every dollar you spend on groceries. We have friends who have credit and banking cards that award them points every time they buy groceries – and the points can be redeemed for, what else, free groceries. Check to see if your credit cards offer any such deals.

By leaving a few loonies in your purse via any or all of these methods, you are not only spending less on groceries, but creating a little pool of money that could go elsewhere.

Why not to your retirement piggy bank? If you are saving on your own for retirement, take a look at the Saskatchewan Pension Plan which has been building retirement security for Canadians for over 35 years. SPP will invest the grocery money you save for you in a pooled fund that is professionally managed at a low cost. And when life after work begins, SPP can turn those saved and invested dollars into retirement income, including the chance of a lifetime monthly annuity payment. After all, who knows what groceries will cost 10, 20 or 30 years from now?

Great news! SPP’s flexible Variable Benefit option is no longer limited to those members living within the borders of Saskatchewan. Now all retiring SPP members across the country can take advantage of this provision, which puts you in control of how much income you want to withdraw, and when you want to withdraw it. You can also transfer in additional savings from other unlocked registered sources. For full details see SaskPension.com.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Multi-generational living – a way to beat the cost of housing?

November 13, 2023

We’ve all seen how expensive housing – either through home ownership or renting – has become in 2023.

Are we going to head back to the good old days, when two, three or more generations lived under the same roof to share the costs of housing? Save with SPP took a look around to see if multi-generational living is a thing.

Turns out, it is!

According to the Vanier Institute, data from the Canadian census show that multi-generational households “have become the fastest-growing census family household type in recent decades.” As of the 2021 census, the article continues, “there were nearly 442,000 multi-generational households in Canada,” and while this accounts for only 2.9 per cent of the total households, it represents “2.4 million people, or 6.4 per cent of the total population.”

As well, the Institute notes, “multigenerational households have increased in number by 50 per cent since 2001.” Additionally, in 2021 “nine per cent of children aged 14 and under (571,000) lived with at least one grandparent, up from 3.3 per cent in 2001.”

The article cites a number of factors for this increase. First, there’s the fact that the population is aging, and life expectancy is rising. “Population aging intersects with other trends such as intergenerational care needs, rising housing costs, and growing population of groups more likely to share a roof with younger generations, contributing to the growth in multigenerational households.”

So what is it like when two or more generations share the same dwelling?

Writing in The Globe and Mail Ben Mussett cites the example of Vancouver’s Stephen Reid.

“Every morning, before his three-year-old granddaughter heads to daycare, Stephen Reid is waiting at the bottom of the stairs to wish her a good day. Unlike many grandparents, Mr. Reid hasn’t had to forgo seeing his only grandchild during the pandemic. In fact, he’s spent time with her nearly every day of her life,” writes Mussett.

“This is possible because Mr. Reid and his wife, Melanie, have lived with their daughter Michelle Cyca and her family for the past three years in Vancouver. Their living arrangement allows the Reids to provide child care in a pinch. Likewise, Ms. Cyca and her husband have been there for her 71-year-old parents, who both deal with chronic health and mobility issues,” he notes.

So, three generations, one house, and they are all looking after each other. Nice!

Over at the National Post we learn about Ottawa’s Yi Jiang.

“About a year after Yi Jiang and her family moved to Ottawa from China, they found themselves sharing a two-bedroom apartment with her parents,” the article notes.

“After living together in Shenzhen, it seemed only natural that once the entire family was in Canada, her parents would live with her, her husband and their young son, she said. The couple has since had another child, and last year all six moved to a house in the suburbs,” the Post reports.

“It’s very important for me to live with them … they are the most important people in my life and I am the only child,” Jiang, a producer for a Mandarin radio show, tells the Post.

The article goes on to note that multi-generational living is a new trend that has roots in long-ago times.

“Right now, the proportion of multigenerational households is high, relative to recent history, but if you go back pre-war, most households were multigenerational; somebody always took in Mom or Dad,” Nora Spinks of the Vanier Institute tells the Post.

“It was only through that weird blip post-war 1950s, 1960s where every generation had their own household, and you moved out at 18 or 19, and you got your own apartment and you never returned home and everybody had their own toaster and everybody had their own everything,” she states in the article.

There is also some hope that multi-generational housing can be part of the solution to the general housing shortage crisis, the CBC reports.

Recently, the article notes, the federal government “introduced a tax credit for families looking to renovate their homes and accommodate more people,” the broadcaster reports.

“It provides a one-time 15 per cent tax refund for renovation costs up to $50,000 for a secondary unit with a private entrance, kitchen, and bathroom,” the CBC reports, adding “to be eligible, the resident of the renovated unit must be a family member who is a senior or an adult with a disability.” The maximum refund amount is $7,500, the article notes.

It will be interesting to see if this trend continues during this odd period of high rents and high mortgage rates.

Whether you retire on your own, or as a couple, or with your folks in one room and the kids in another, you’ll need money to cover expenses, even if they are shared. If you are fortunate enough to have a retirement program at work, be sure to join it and participate to the max. If you don’t have a program, or want to augment the one you have, take a look at the Saskatchewan Pension Plan.

With SPP, you decide how much you want to contribute – your contributions are tax-deductible. SPP then does the heavy lifting of investing your savings in a low-cost, professionally managed, pooled fund. When it’s time to call it a day for good at the office, SPP will help your turn those savings into retirement income, with the option of you receiving a lifetime monthly annuity payment in respect of some or all of your savings.

Great news! SPP’s flexible Variable Benefit option is no longer limited to those members living within the borders of Saskatchewan. Now all retiring SPP members across the country can take advantage of this provision, which puts you in control of how much income you want to withdraw, and when you want to withdraw it. You can also transfer in additional savings from other unlocked registered sources. For full details see SaskPension.com.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Variable Benefit: SPP’s flexible retirement option is now available to all Canadians

October 24, 2023

The Saskatchewan Pension Plan is making its Variable Benefit retirement option – previously available only to Saskatchewan residents – available to all members across the country.

This great news – which delivers more flexibility for retirees – was announced via this media release.

With the Variable Benefit, retiring members can choose to leave their savings with SPP, where they will continue to be invested, and can decide how much money they want to receive from SPP, and when. And as well, members can still consolidate their unlocked savings from other registered retirement savings within SPP even after they select the VB option.

“SPP has always been committed to giving members control of their retirement savings – both

in how they contribute and how they choose to collect once it’s time to retire,” says Shannan

Corey, Executive Director. “Until now, legislation has limited the choices members outside of

Saskatchewan had for collecting their pension funds. We’re excited that we can now extend that freedom of choice to all of our members, regardless of where they choose to live.”

The option has been very popular with Saskatchewan SPP members, says Shannan.

“Members outside of Saskatchewan have been asking for the Variable Benefit for some time,” she says. “Until recently, legislation meant that wasn’t possible. They had to either choose an

SPP Annuity or switch their money to a financial institution. Now, members who live all across

Canada have access to the flexibility of a Variable Benefit.”

The removal of interprovincial barriers for the Variable Benefit is the latest major SPP improvement in recent months. Earlier, SPP removed pre-existing limits on how much members can contribute to SPP each year, and on how much they can transfer into SPP from an unlocked registered plan.

“We’ve made significant changes to SPP this year in order to make the plan as flexible and

beneficial for our members as possible,” Shannan says. “For a plan with almost 40 years of history, we’re constantly searching for ways to evolve to better serve our members. Everyone’s situation is different; how much they’ve saved and how they want to spend their retirement. This is just one more way we can help them live the retired life they’ve always dreamed of.”

For further details about the SPP and the Variable Benefit option, please visit.

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


In retirement, is it better to own or rent?

October 12, 2023

We run into lots of fellow seniors as we line dance our way around town, and we’re always running into discussions about whether — as retirees — we should ditch the family home and rent, or hang on.

Save with SPP decided to see what others have to say on this topic, which seems to become more and more important with each passing birthday.

The folks at MoneySense took a look at this topic a few years ago, and had some interesting thoughts.

“Those who criticize renting over home ownership often ignore some costs of owning a home. Beyond a mortgage payment and property tax, home insurance is higher when owning versus renting. Condo fees may also apply. There are maintenance costs, repairs and renovations. If mortgage rates rise to more normal levels, you can expect your mortgage payment to be higher in the future. Home ownership has costs as well as benefits,” the article tells us.

An article in The Globe and Mail looks at the issue a little differently.

Noting that two-thirds of Canadians own their own homes, the article asks if home ownership still makes financial sense for the older folks among us.

“With many older Canadians approaching retirement with little savings – and some even carrying significant debt – selling the family home and renting may mean the difference between just getting by and living a life free from financial worry,” the article suggests.

The article quotes Scott Plaskett of Ironshield Financial Planning as saying those of us with homes “can be equity-rich and cash-poor: you are worth $5 million on paper, but you can’t pay for dinner because you have no liquidity.”

Selling the house and then renting fixes the liquidity problem, the article contends.

There are pros and cons to renting, writes Jean-François Venne for Sun Life.

He quotes real estate broker Marie-Hélène Ouellette as saying “you first have to consider the pros and cons of being an owner versus a renter. The biggest difference between the options is in the level of responsibility and freedom.”

“You obviously have more freedom when renting since you can leave when your lease is up. And you have fewer responsibilities because the owner takes care of the maintenance. But renters can also have less control than owners over things like decorating, repairs and even pets. And if you’ve been a homeowner for a long time, losing control and choice isn’t always easy to handle,” she states in the article.

The article makes the point that while owning a home usually means its value increases over time, “values do sometimes drop. And as a retiree, you won’t have a lot of time to make up for a decline in value.”

As well, your money can be tied up for a while when you sell or purchase a property, the article adds.

In the article, financial planner Josée Jeffrey says that it can be an unpleasant surprise, for those who have paid off their mortgage, to have to pay rent again. And, she adds, while you no longer are paying property taxes, they may be built into your rent, which usually goes up every year.

There’s a lot to unpack here. Owning means a long commitment to paying a mortgage, as well as property taxes, maintenance, but also your heat, light, and water bill. If there’s a driveway or a lawn it’s on you to clear away the snow and weed-whack the lawn. “Maintenance” involves fixing things that break, like toilets or garage doors or ovens and fridges.

Renting liberates you from many of these responsibilities. But rent can go up — and go up quite a bit if, for instance, the place you’re renting changes ownership. Not all landlords are quick to fix things that break (some are, and bless them), and it’s true — if you are used to owning prior to renting, you’ll have an inescapable urge to bang a few nails into the wall and hang up some artwork, which is typically frowned upon.

So this is a decision you will have to think long and carefully about, concludes an article in Yahoo! Finance.

“Don’t discount emotional issues when making this important decision,” the article advises. “Do you love the idea of owning your own place and fixing it up the way you want? Or will it be a big relief after years of ownership not to worry about the lawn or a broken sump pump?”

The article concludes by stating “while your decision needs to be financially sound, make the decision that makes the most sense for you. Not being a homeowner can be freeing, scary or both. Your home, its location and amenities should fit the life you lead now.”

If you are renting or paying for a mortgage, be sure to still put something away for retirement. A little extra money when you’re older will help with things like future property tax or rental increases. A wonderful retirement savings program open to all Canadians with registered retirement savings plan room is the Saskatchewan Pension Plan. A not-for-profit, open, voluntary defined contribution plan, SPP has investment experts who will invest your retirement savings in a low-cost, pooled fund. When you’re over the walls and away from work, SPP can help you convert those savings into income — including the possibility of a lifetime monthly annuity payment. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.