Mar. 2: BEST OF THE BLOGOSPHERE

March 2, 2026

Are your retirement plans on a solid footing? Here’s how to check

Writing for Money.ca, Vishesh Raisinghani reports that five key benchmarks can help us all to see how we’re doing with our retirement plans.

He begins by citing recent research from FP Canada that found that “almost half (42 per cent) of people say concerns about rising costs and falling short on savings weighs heavily on their overall well-being.”

Despite that “completely normal” level of concern, he continues, there are ways to gauge your retirement readiness. “If you’ve hit a few key milestones, it may be a sign that your retirement is more secure than it may feel.”

Let’s review the five benchmarks he identifies in the article.

Have you paid off your home, he asks.

About 30 per cent of “mature households… now carry mortgage debt,” he notes. That’s a big change from the past, when most retirees “entered retirement mortgage-free.”

“That’s why entering retirement without a mortgage is such a powerful position to be in. If you’ve managed to pay off your primary residence before retiring, you’ve removed one of the biggest expenses from your budget — and given yourself more flexibility, stability and well-being than a sizeable portion of your peers.”

How, he continues, is your overall health?

While our universal healthcare system provides us free access to many health services, it’s not all free, he points out. “Prescription drugs, dental care, vision care, mobility aids and home care often involve out-of-pocket costs — especially for seniors without employer benefits,” he notes.

The healthier you can be in retirement, the better things will be, he explains.

“If you’re in relatively good shape, you’re likely to face fewer unexpected expenses and enjoy more choice over how and where you spend your time and money,” writes Raisinghani, adding that “good health doesn’t guarantee a stress-free life, but it does put you in a stronger position than many of your peers.”

A third good benchmark is that you are “living below your means,” he writes.

“Research and industry surveys consistently show that keeping spending in check is one of the biggest challenges retirees face, particularly as costs for housing, food and services continue to climb. Financial planners often note that retirees who underestimate expenses early on may feel pressured to make up for it later, when there’s less flexibility to adjust income,” he writes.

“If your spending has stayed lower than you planned — or you’ve built enough of a margin to absorb higher costs without stress — you’re doing something incredibly right,” he points out.

Next, he asks, are your children all living independently?

“Having financially independent children is a meaningful milestone. If your kids are covering their own living costs independently, you’re in a stronger position to focus on your own needs, goals and security,” he advises.

Finally, do you have a “margin of safety” with your planned retirement income?

“Most people carry a mental ‘magic number’ for retirement — the amount they believe will cover their lifestyle so they feel content. In Canada, that number varies widely depending on housing costs, health, family responsibilities and whether income will also come from sources like the Canada Pension Plan (CPP), Old Age Security (OAS) or workplace pensions,” he explains.

“Having a margin of safety — even a modest one — can make a significant difference. If your retirement savings are larger than what your plan says you strictly need, you’re better positioned to handle market turndowns, higher living costs or unexpected expenses without panicking. That cushion can also give you more freedom in how you draw income, adjust spending or delay big purchase decisions,” he concludes.

This is solid advice. Our late Uncle Joe used to always advise – and he did this well into his 80s – to try and live on 90 per cent of your income and put the rest away in savings. He saw savings as a lifelong pursuit, rather than something done only in the run-up to retirement.

If you are saving on your own for retirement, or want to augment any existing retirement savings program you have through work, the Saskatchewan Pension Plan is definitely worth checking out.

SPP handles the tricky part of investing your savings for the long term, growing every dollar in our professionally managed, low-cost, pooled fund. At retirement, your options include drawing a lifetime monthly income via an SPP annuity, or opting for the more flexible Variable Benefit.

Check out SPP today – the made-in-Saskatchewan retirement savings solution for all Canadians.

Join the Wealthcare Revolution – follow SPP on Facebook!

Money.ca

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