Sep 11: BEST FROM THE BLOGOSPHERE
September 11, 2023
Handy tool takes some of the guesswork out of retirement planning
There are some tricky obstacles facing us when it’s time to figure out how to live on our retirement savings.
The Daily Hive recently reported on a new calculator put in place by the federal government to help Canadians better understand the multiple streams of money that may make up their future retirement income.
“The Retirement Hub provides a clearer picture of your options and how to plan for them,” the publication reports.
“The hub features a retirement income calculator, which includes the Old Age Security (OAS) pension and Canada Pension Plan (CPP) benefits. The calculator takes you through several steps to determine everything” The Daily Hive tells us.
“First, you must enter your gender, birthday, and annual income from all sources before tax. Then you’ll be asked to set an annual retirement goal income (before tax) in today’s dollars,” the publication advises.
The folks at The Daily Hive tried plugging in numbers for someone who is age 31, and making $60,000.
That person would receive a future retirement income of $27,000 to $46,000 by age 70, the article notes.
The calculated amount factors in things like your personal savings, any workplace pension plan you may belong to, money in a registered retirement savings plan, and so on.
It also blends in your future CPP and OAS benefits (and, if application Quebec Pension Plan benefits) into the overall retirement income picture, the publication adds.
“If you’re not sure if you’re ready for retirement or want extra assistance with planning, there’s also a quiz you can take, which provides a checklist of tips to help you with your plan,” the Daily Hive concludes.
The Saskatchewan Pension Plan also has some built in tools to help you with retirement planning.
The Wealth Calculator provides a nice, fast estimate of where your SPP will be when you are ready to collect. Have a look at your latest balance, via your statement or through MySPP, then estimate how much you plan to add to the plan until you retire. You can estimate how much you think your savings will grow, and then voila — there’s a rough estimate of what you’ll have when it’s time to collect.
MySPP is also a great resource. You can sign up by clicking here. Once you are in, you can easily see your contributions to date and any investment returns applied each month. You can print off your contribution receipts, and upon retirement, your income tax documents, as well as view your statements — and you can keep your contact information up to date.
These tools help you to demystify retirement — if you have a pretty good idea of what you will be receiving as income, that’s half the battle. The other half is figuring out what your future living costs will be.
Check out SPP today — if you don’t have a pension plan through work, or don’t want to invest on your own for retirement, SPP offers the expertise you need. We’ll grow your savings into future income via a low-cost, professionally managed pooled fund, and your income options will include the possibility of guaranteed monthly income through SPP’s line of annuities.
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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.