Travel is at the top of many people’s wish lists for their retirement. And why not?
Imagine spending your days relaxing under an umbrella on a sandy beach. Perhaps swinging the clubs on a lush golf course. Marvelling at natural wonders while on a hike. Or feeling the breeze on the deck of a cruise ship sailing the world. Spending your retirement doing whatever you wish whenever you wish — wherever you wish — is the dream of many.
“Travel is extremely popular among seniors. Those can be the years to see and do things you might otherwise not have had the time or money to experience earlier in life,” says Jamie Milton, partner of Uniglobe Carefree Travel of Saskatoon, which offers experienced travel agents to plan every aspect of a trip as well as travel insurance and medical insurance to protect travellers.
But wishing will not make your travel dreams a reality. By contributing each month to a pension plan, you can take advantage of time and compounding returns to fund those retirement dreams.
The Saskatchewan Pension Plan (SPP) is there for those in need of a reliable, easy-to-use and easy-to-understand voluntary pension plan. More than 33,000 people have become members of the SPP since it began 30 years ago in 1986.
Thirty years of growth can add up to a sizable amount. Contributing $100 a month with annual investment earnings of eight per cent can grow to $150,030 in 30 years.
“Pay yourself first. Take a little off each paycheque for yourself. You won’t miss it,” says Katherine Strutt, general manager of the SPP.
Strutt encourages those looking ahead to picture the lifestyle they desire during retirement to determine how much income they will need during those years. Then, contribute regularly as a member of a pension plan like the SPP, which is open to Canadians between the ages of 18 and 71 with available room to make RRSP contributions. The SPP is aimed at the two-thirds of Canadians who do not have a workplace pension plan such as those self-employed or working for small businesses.
It can be hard to think about saving for retirement when the mortgage payment is due, the kids need new sports equipment and the veterinary bill just came in for the dog. But as retirement nears, you can appreciate that your contributions to a pension plan like the SPP means income to fund those travel dreams.