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.

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In the U.S., senior poverty is on the rise

Writing in USA Today, Medora Lee reports that senior poverty is on the rise south of the border.

“Based on the official measure, which is a simple calculation based on pre-tax cash income compared with a national threshold, the percentage of seniors in poverty rose to 9.9 per cent in 2024 from 9.7 per cent in 2023,” she writes.

The increase in senior poverty, she adds, “contrasts with every other age group, which saw declines or stayed steady.”

“Once again, more older Americans are sinking into poverty, just as 11,000 are turning 65 every day,” Ramsey Alwin, president and CEO of the National Council on Aging, a nonprofit focused on improving the lives of older adults, tells USA Today. “A country as rich as ours should be shocked that over 9.2 million of our fellow older Americans struggle to cover basic expenses like food and medicine.”

The article says that inflation, which has been higher since the pandemic, and “expensive caregiving costs” are factors driving senior poverty in the States.

“The increase in senior poverty reflects a broader caregiving crisis affecting older Americans,” states Jason Resendez, president and chief executive of the nonprofit National Alliance for Caregiving, in the USA Today article.  “Our latest research shows that nearly half of family caregivers − including 14 million who are seniors themselves − face significant financial strain from providing care, with many depleting savings and taking on debt.”

Extra financial assistance during the pandemic helped reduce the rate of senior poverty, but it has increased in the years since the support payments stopped coming, the article notes.

Worse, some programs that aided older Americans have recently seen funding cuts.

Alwin tells the newspaper that “recently enacted cuts to SNAP (food stamps) will increase hunger among older Americans and the recently passed Medicaid cuts will lead to a sicker older population.”

Possible solutions raised in the article include better awareness of existing support programs – “70 per cent of older Americans, or nine million, are eligible for support programs but not enrolled,” the article notes. As well, the article suggests that benefits from Social Security (the U.S. equivalent to the Canada Pension Plan and Old Age Security) “need to be bolstered,” as Social Security is America’s “largest anti-poverty program.”

Similar comments have been made about Canada’s support programs for seniors by Carole Fawcett of the Seniors Tin Cup movement. She told Save with SPP last fall that her group would like to see those programs provide annual benefits to low-income seniors in the $25,000 range. “They will be able to live a basic, simple life at that level of income,” she told us.

If there’s a takeaway from all this, it is that any amount you are able to save during your working career will help your future you. If you can join a retirement program though your work, be sure that you do. If not, the Saskatchewan Pension Plan may be just the ticket.

SPP is a voluntary defined contribution plan that’s open to any Canadian with available registered retirement savings plan room. You can decide how much to contribute to SPP each year – any amount up to your RRSP limit. As well, you can transfer in amounts from any other non-locked in RRSPs you may have.

SPP’s role in this process is on the investment side. SPP will grow your savings dollars in a low-cost, professionally managed pooled fund. When it’s time to retire, your income options include a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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Does anyone hit the $1 million mark in retirement savings?

We all know the answer to the question “who wants to be a millionaire,” but a recent post from The Motley Fool by James Brumley takes a look at the question of how many of us actually reach that savings goal.

“Plenty of people still contend that a $1 million retirement nest egg is more than just a milestone. It’s often arbitrarily seen as the dividing line between a comfortable retirement and a worrisome one, in fact,” he begins.

But, he asks, “how many people are actually saving $1 million (or more) for retirement? The answer: Not as many as you think.”

While there are more millionaires in the U.S. than at any point in the past, most people’s “net worth isn’t a seven-figure sum. And fewer still are sitting on a retirement nest egg worth $1 million or more in cash or in highly liquid assets like stocks, bonds and mutual funds,” he continues.

Figures, he points out, back this up. Data from 2022 from the U.S. Federal Reserve found that 4.6 per cent of the 131.2 million U.S. households “held retirement accounts collectively worth $1 million or more.”

He notes that Bureau of Labor Statistics figures suggest that the typical U.S. household populated by people aged 65 or older consists of 1.7 people – so we are probably talking about an older couple when we speak of seven-figure retirement nest eggs.

Brumley also cites data from Fidelity, a large U.S. asset manager, that found of the 24.8 million retirement plans it serves, “654,000 of them owned… accounts worth at least $1 million.”

That fact is tempered by this one, he continues.

“Only about six out of every 10 of the 305 million adults living in the U.S. has any type of retirement account, (which) suggests there are just under five million retirees with million-dollar retirement accounts,” he notes, this time citing research from the Gallup organization.

Brumley’s takeaway from all this?

“Take the number with at least a small grain of salt. It’s interesting to be sure, and perhaps even a little bit discouraging in that so few retirees are reaching what seems to be a minimum savings target. (In its most recent survey on the matter, insurer Northwestern Mutual found that — on average — Americans think they’ll need $1.26 million in savings to retire comfortably, even though most of them seem to know they’re not likely to hit that mark),” he writes.

“You don’t necessarily need a seven-figure nest egg to secure a nice retirement. You can be OK with less,” he writes, adding that anything you save will provide income on top of what you receive from government and other programs (in Canada, this would be the Canada Pension Plan, Old Age Security, and any retirement program you might have through employment.)

If, he writes, your employer offers any kind of retirement program, be sure to take part – there can often be an employer match that will increase the amount being directed to your savings pot.

If there’s no such program at work, “doing something on your own is better than doing nothing at all… even if it seems like you’re doing so little that it doesn’t even matter. Most of the few million-dollar retirement accounts in question were built from surprisingly meagre starts.”

This is where the Saskatchewan Pension Plan can be of assistance. It’s open to any Canadian who has available registered retirement savings plan room.

You decide how much to contribute to your retirement nestegg each year, and you can transfer in any amount from other non-locked in RRSPs you may have. Every dollar received by SPP is invested in our low-cost, professionally managed pooled fund.

At retirement, your options include converting some or all of your savings to a monthly lifetime annuity payment or opting for the more flexible Variable Benefit.

Check out SPP today!

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Canadians expect to work part time in retirement, and to retire later than planned

In 1999, the CEO of the pension plan we used to work for announced he was about to climb “over the wall” and enjoy retirement – he planned to say he never worked a day in the 21^st century, and expected to roam the continent in his RV.

That was then, of course. An article in Wealth Professional by Steve Randall finds that there is pessimism these days about “full” retirement – life after work with, well, no work.

“Many savers, particularly in Canada, (are) anticipating a longer working life as uncertainty weighs on confidence,” his article begins. A survey, he continues, by T. Rowe Price finds “that roughly one-third of respondents expect to work at least part time during retirement. The findings reflect growing concern about inflation, market volatility and the ability to maintain living standards later in life.”

This survey, he adds, involved 7,000 workers in “Canada, the United States, the United Kingdom, Australia and Japan.”

Canada, Randall writes, showed some of the most pessimism.

“More than half said they expect a recession within the next year, a level of concern second only to Japan. That outlook appears to be shaping retirement expectations, as fewer Canadians expressed confidence about their long-term financial security,” he continues.

As well, Randall notes, “only about 31 per cent of savers believe they will be able to live as well or better in retirement than they do today. While fewer than one in five expect to completely run out of money in retirement, many acknowledged they would struggle to handle a major financial shock.”

The survey, he adds, found that “two-thirds of those aged 50 and over (expect) to retire after age 65. Younger workers, while more optimistic, still report uncertainty about whether traditional retirement timelines are realistic.”

The article suggests that seeking professional retirement planning advice is a wise move.

“The survey also points to the continued importance of professional advice. Despite the rise of digital planning tools, many respondents said they rely most on human financial advisors and workplace retirement resources to help navigate increasingly complex decisions.” Randall writes.

The article concludes by quoting Jessica Sclafani of T. Rowe Price as saying “research is at the heart of everything we do,” and that “longer life spans, financial uncertainty, and shifting expectations are redefining retirement—transforming it from a fixed destination to an evolving journey that demands new thinking from both savers and the industry.”

Running out of savings in retirement is a concern. One way to avoid that outcome is to put some or all of your retirement loonies into an annuity.

The Saskatchewan Pension Plan offers its members a family of annuity products to consider when the time comes to turn savings into income. SPP’s Retirement Guide outlines details on all annuity options – but the quality they all share is that they provide you with a monthly payment for life. Some of the options also provide benefits to a spouse or beneficiary when you pass away.

Check out SPP today – the made-in-Saskatchewan retirement savings program open to any Canadian with registered retirement savings plan room.

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Are you on track for retirement savings – or do you need a “catch-up” strategy?

If you’re saving up to buy a new car, or to make a down payment, you have a clear idea of how much is enough to save.

It’s not so easy, however, reports Money Canada, when figuring out what your retirement savings target is. Are you on track, the publication asks, or do you need a catch-up strategy?

These days, the article begins, most Canadians believe the “magic number” for retirement savings is “$1.54 million, according to a 2025 Bank of Montreal survey.”

However, the article explains, “this number tells you nothing about how your personal finances compare to your peers and whether you’re likely to feel comfortable and confident in retirement.”

Instead, the article tells us, there are seven ways you can figure out if your savings efforts are on track.

Do you “have enough money to cover monthly needs,” the article asks. “While you can’t anticipate all your monthly expenses, you will need at least enough guaranteed retirement income — including pensions, personal savings, Old Age Security (OAS) and the Canada Pension Plan (CPP) — to pay for food, shelter and utilities,” Money Canada explains.

According to Statistics Canada, this amount – as of 2023 – was $6,541 per month for a senior couple over 65, the article adds. “So, if your guaranteed retirement income delivers over $6,500 a month at least, you’re outperforming most other retirees,” the article notes.

A second factor is whether or not you have “high interest debt,” Money Canada reports. A whopping 37 per cent of senior families, again according to Statistics Canada, “are carrying debt with them in retirement,” the article explains, and 29 per cent of those planning to retire this year still have a mortgage.

So debt, the article concludes, is an impediment for retirement savers and a burden for those who are retired.

If you have “multiple sources of income beyond CPP/OAS,” such as “dividends, income from rental properties, or pensions,” you will be in a much better financial position than those who do not, and must rely solely on government benefits, the article tells us.

Other ways to get ahead – living below your means, continuing to save and invest, having an estate plan, and having a clear retirement plan, the article advises.

“According to a 2025 survey from the Healthcare of Ontario Pension Plan, 49 per cent of Canadians were unable to set aside any money the previous year for retirement. If you’ve been actively saving and investing…  and started at a younger age, you may be doing better than many other Canadians,” the article points out.

The article concludes by saying addressing all these factors – from knowing what you expect to spend in retirement, to having a plan for retirement savings in the here and now – will help you get ahead in the savings race.

“It’s never too late to start making minor adjustments for a better retirement,” the article concludes.

A willing ally in any drive to have more retirement income than just government benefits is the Saskatchewan Pension Plan, a savings system that is open to any Canadian with registered retirement savings plan room.

Did you know that SPP offers a Wealth Calculator (Wealth Calculator | Saskatchewan Pension Plan) to help its members figure out how much their account will be worth by the time they reach key retirement milestones? It’s a handy resource and retirement planning tool.

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

Join the Wealthcare Revolution – follow SPP on Facebook!

Has cash become king for younger savers?

New research from TD Bank suggests that younger savers are not contributing to their Tax Free Savings Accounts (TFSAs) but are preferring to keep their savings in ready-to-spend cash accounts.

The research was covered in a recent report by Ari Rabinovitch of Global News.

As younger Canadians struggle with the heightened cost of living and a difficult job market, a new survey from TD Bank suggests Gen Z and millennials who use a tax-free savings account (TFSA) aren’t investing in that account because they want the money readily available,” he writes.

The unemployment rate for younger Canadians, the article continues, is “more than double the national average according to recent Statistics Canada data.” Indeed, the article adds, youth unemployment was over 14 per cent as of October 2025.

Perhaps because of that, the article reports, “41 per cent of Gen Z and millennials who currently hold a TFSA are not investing inside of it, the TD research found.”

It’s not just the young who are keeping things in cash, the article continues.

“The survey also says 65 per cent of all Canadians hold a TFSA, but 39 per cent of them are not investing the money inside,” Rabinovitch notes.

“Introduced during the Great Recession, the TFSA was launched in 2009 and acted as a way to encourage Canadians to invest for retirement and other milestones,” the article explains.

“A TFSA acts as a tax shelter, allowing Canadians to put a certain amount of money into their account and, if they want, use that to invest in things like stocks, bonds, GICs and mutual funds,” the article adds.

You don’t pay taxes on dividends, interest, or capital gains inside a TFSA, the Global report adds, and in 2025 the annual contribution limit was $7,000.

The cost of living, the Global article tells us, was “the biggest concern for Canadians” ahead of the recent federal budget.

Recent polling done by Ipsos for Global “suggested 69 per cent of Canadians are `worried’ the government won’t do enough to help them in the years ahead. That number rose to more than 70 per cent among younger demographics,” the article states.

As well, the report concludes, “nearly half of respondents (46 per cent) to an Angus Reid survey conducted by Willful in October said they had to dip into their savings to keep up with daily expenses.”

Even if there’s not much left after the bills are paid, the Saskatchewan Pension Plan is a capable partner for long-term retirement savings.

You can contribute any amount you want, up to your personal registered retirement savings plan (RRSP) limit. You can make pre-authorized contributions from a bank account or credit card or set up SPP as a bill in your online banking and make contributions that way.

Your savings grow tax-free while they are in SPP – those taxes are deferred until you begin to withdraw your money as income in a post-work future. And your income options include a lifetime monthly annuity payment that never runs out, or the more flexible Variable Benefit.

Check out SPP today!

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Paper suggests employers should help workers build emergency savings

Should employer help their employees save up for emergencies?

An article by Bianca Thompson in The Globe and Mail reports on a recent report that suggests just such a cooperative approach.

“A recent report from the Financial Wellness Lab at Western University is calling on companies to help Canadians contribute to emergency savings accounts,” she writes.

“Researchers at the lab say many Canadians are living paycheque to paycheque, with little to fall back on when unexpected expenses hit. The white paper found that more than 60 per cent of working-age Canadians couldn’t cover a $1,000 emergency without borrowing or going into debt,” the article continues.

A possible solution, the article continues, would be “employer-sponsored emergency savings programs,” or ESAs.

With such a program, the report notes, “contributions to ESAs would be automatically deducted from an employee’s pay, much as they are with workplace pension plans. The money would be set aside in small amounts from each paycheque to cover short-term emergencies.”

The white paper envisions a “two-tier” approach for the ESAs. There would be a “rainy day fund” for “small, unexpected expenses” as well as a “larger emergency fund for major financial shocks, such as a job loss or large-scale home repairs.”

“Cash coming in does not always match cash going out, and we need a safety net,” states Chuck Grace, co-founder of Canada’s Financial Wellness Lab, in the Globe article. “When employees are less distracted by financial stress, they are healthier, more focused and more productive, which benefits employers as well,” he tells the Globe.

Interestingly, a couple of firms are already trying this idea out, the article reports.

Ontario’s Mainstreet Credit Union, the article notes, recently rolled an ESA program out to all staff. CI Financial contributed to the white paper, and CI’s Kambiz Vatan-Abadi tells the Globe that an ESA can be a “`win-win solution’ that supports employees’ financial stability while benefiting employers in the process.”

“Employers who are financially healthy and resilient perform better at work,” he tells the Globe.

The article points out, citing figures from The National Payroll Institute’s 2025 Annual Survey of Working Canadians, that “financial stress costs Canadian businesses nearly $70-billion a year in lost productivity.”

ESAs are common in the U.S. and “gaining traction” in the U.K., but are few are far between in Canada so far, the article reports.

The article suggests “auto-enrollment” as a way to get people into such programs. This means you are automatically enrolled unless you choose to opt out.

“A British study found that less than one per cent of workers opted in when they had to self-enroll, but participation jumped to 50 per cent once enrolment was automatic,” the article notes.

It will be interesting to see if this idea gains traction here in Canada.

Did you know that the average Canada Pension Plan payment in 2025 is, according to the federal government’s figures just $848.37 per month? And the Old Age Security adds – on average – a maximum of $740.09?

If you aren’t supplementing these modest amounts with your own savings, or via a retirement program at work, it might be prudent to begin putting money away for your retired life now.

A fine partner in this effort is the Saskatchewan Pension Plan. With SPP, you can make annual contributions of any amount, up to a maximum of your personal registered retirement savings plan (RRSP) limit. You can also transfer any amount into SPP from non-locked-in RRSPs you may have.

SPP then does the heavy lifting – investing those savings in a low-cost, professionally managed, pooled fund. When it’s time to retire, your choices include receiving a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Hey Boomer! How do your retirement savings stack up against the average?

When we’re out on the golf course next spring, our watch tells us how we’re doing – how far we’ve got to go to the green, how far we’ve come from the tee, and whether this Tuesday’s score will be among our best or worst.

But, reports Vishesh Raisinghani, writing for Money Canada, there is no such smart watch or scorecard to tell us how our savings efforts stack up against those of others in our age bracket.

Let’s take boomers, the article begins.

“With the youngest baby boomers now aged 61, much of this generation is already retired or nearing retirement,” Money Canada reports. “However, data shows many have inadequate savings and, as a result, may struggle to maintain their standard of living. In fact, some boomers have saved so little that younger Canadians could surpass their savings benchmark with just a few years of disciplined saving and investing,” the article adds.

Boomers, the article continues, have saved, on average, $756,497 for retirement according to Statistics Canada. “Many also hold other assets such as GICs, stocks, mutual funds and real estate. This put the average net worth of households for those aged 65 and above at just over $5.5 million,” the article notes.

That sounds pretty good, right?

“This financial sum might look good at first, but it could fall short of recommended retirement benchmarks. After all, your net worth can include big-ticket assets like your home,” the article warns.

“Most Canadians believe they will need $1.54 million to retire comfortably, according to survey data from BMO, and many are finding that their savings fall short, especially if they want to maintain their current quality of life,” the article adds.

There is a target to aim for, Money Canada reports, and that is to have savings that produce income equal to about 70 per cent of what you make at work.

“With the average annual income for Canadians aged 55 to 59 at $42,800, the target is to save enough to earn approximately $29,960 per year (from interest, capital appreciation and dividend earnings),” writes Raisinghani.

“Assuming a retirement age of 65 and average life expectancy, men should look to save at least $419,440 and women to save at least $539,280 to generate close to $30K per year in retirement income,” the article continues.

The dangers, the article notes, in not generating enough retirement income are several. A recent study from CPP Investments found that “61 per cent of Canadians are afraid of running out of money during retirement,” the article reports. And if your income from savings is low in retirement, “many boomers may be forced to take on debt, rely heavily on their Canada Pension Plan and Old Age Security, cut back their lifestyles or even return to work.”

What’s the solution?

“Whatever your personal `magic number’ for retirement is, you can achieve it if you start early and stay consistent. Depending on how aggressively you save, you could be well on your way to being financially ahead of where the average boomer stands today,” the article concludes.

Many experts feel that making savings automatic – directly deposited from your bank account on payday before you can even think of spending it – is the “set it and forget it” approach to building savings.

Members of the Saskatchewan Pension Plan can automate their savings. You can make pre-authorized contributions from a bank account or credit card, building your nest egg steadily and without having to think about it.

SPP takes those contributions and grows them in our professionally managed, low-cost pooled fund. And when it’s time to turn savings into income, your options include a monthly lifetime annuity payment – income that never runs out – or the more flexible Variable Benefit.

Check out SPP today!

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Are Canadians prepared for a retirement that could last for decades?

Writing for the Financial Post, Pamela Heaven asks if Canadian early retirees are prepared for a retirement that could span four decades.

“Instead of the 20 to 30 `golden years’ of earlier generations, workers today are potentially looking at retirements that span 40 years or more,” she writes.

Life expectancy, she notes, is driving these longer retirements.

“Canadians are also living longer. Since 2023, life expectancy in Canada has risen two years to 83, and since 2001 the number of people over 100 has doubled, said the study. Globally, the number of centenarians is expected to grow by 800 per cent by 2050,” she adds.

Yet, Heaven writes, those who are retiring early today may not always have chosen this longer path.

“Almost half of the retirees in a survey by Manulife Group Retirement this week stopped working earlier than they planned at an average age of 59 — and the bulk of these early retirements were for reasons beyond their control. Either they suffered a health issue, needed to care for a loved one or lost their job,” Heaven explains.

Alarmingly, the same Manulife study found that only “15 per cent retired early because they saved enough, which raises concerns about how prepared Canadians are for an increasingly lengthy retirement,” she continues.

Let’s unpack this – more of us are going to be retired for longer than we may have expected, and most of us haven’t saved enough for our golden decades.

And, Heaven points out, this is not the best time to be trying to save for retirement.

“Financial pressures on Canadians have escalated since the pandemic. The share of working Canadians who consider their financial situation fair or poor has risen from 33 per cent in 2020 to 41 per cent today, and those who consider their retirement savings behind schedule has jumped from 35 per cent in 2021 to 48 per cent,” she reports.

So there’s been a shift away from the idea of retiring at 55 to staying on at work a little longer, the article notes.

“The share of working Canadians who want to retire later has climbed from 26 per cent in 2020 to 35 per cent today, and in Manulife’s global study, 40 to 50 per cent of workers in all markets said they planned to work in retirement,” Heaven writes.

In practice, the article warns, citing wording from the Manulife research, working after retirement isn’t as common as one might expect.

“Unfortunately, the reality in North America is that only 16 per cent of retirees surveyed work full or part time,” Heaven writes, quoting from the study. “And retirees surveyed stopped working far earlier than they’d planned, mostly due to their own health challenges or to care for a loved one,” she adds, again citing findings from the research.

Another study finding – retirement can be expensive, and you can start going through your savings faster than expected.

“Plan ahead,” warned one Gen Xer in the Manulife study, the article notes. “It’s here before you know it.”

So, if retirement savings is not currently part of your budget, you will need to add it in, even if you have to start small.

If there’s any sort of retirement program where you work, be sure to sign up and start contributing as much as you can. If not, a great option is the Saskatchewan Pension Plan, open to any Canadian with registered retirement savings plan room.

You can make annual SPP contributions at any level you like up to your RRSP limit. If you have other RRSPs that aren’t locked in, you can transfer any or all of their balances into SPP to consolidate your nest egg. You can start small and ramp up as you earn more.

SPP does the heavy lifting of investing for you, growing your hard-saved dollars in our professionally managed, low-cost pooled fund.

When work is over, your SPP income options include a monthly annuity payment you’ll receive every month for as long as you live, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

The case for “memory investing,” or making sure you enjoy the retirement money you’ve saved

Writing for Forbes magazine, financial planner Chad Waddoups of Mountain America Financial Services discusses the transition from saving to retirement to spending it (and enjoying it) after work is done.

“Many people are conditioned to save for retirement—maxing out (their) contributions, attending investment seminars and consulting financial advisors. But after a lifetime of disciplined saving, many retirees find themselves asking, `How do I transition from building wealth to actually using it for the experiences I’ve been deferring for decades?’ and `How do I shift from a scarcity mindset to an abundance mentality?,’” he writes.

A helpful tool, he continues, is the concept of “memory investing.”

This is “an approach that reframes retirement planning around meaningful experiences and improved relationships rather than just asset accumulation,” he explains.

A retirement savings goal should not be to “die rich,” he writes, but to “live fully while you can.” In other words, he points out, “once you reach your target number for financial security, it’s time to use that savings to enjoy your retirement.”

“As retirement approaches, the once-abstract idea of `someday’ becomes more real, and the fear of running out of money begins to compete with the fear of running out of time,” Waddoups notes. “If this is the case for you, it can be useful to recognize how the value of shared experiences and deepened relationships can exceed the security of unspent wealth.”

Waddoup recommends that some planning take place, in advance of creating memories, to make sure you have enough money saved to cover your basic expenses for the rest of your life. If you have more than enough money to do that, you can begin to think about how to spend this “surplus,” he explains.

If this calculation reveals that you are – while still working – saving too much for retirement, consider hiving off some of your saved money for a memory creation account, he suggests.

“For example, instead of contributing 15 per cent to your retirement account, contribute 10 per cent and use the other five per cent to save for a special family trip. Just be sure to make careful calculations to stay on track for your retirement goals,” he writes.

As a personal example, Waddoup decided he could re-direct some of his saved wealth towards a family trip to Alaska without impacting his retirement savings target.

Be sure, the article advises, to understand the possible tax consequences of withdrawing funds from a retirement account before cracking into the nest egg for a new family memory. But, the article concludes, don’t not save money for future memory creation.

“Memory investing isn’t about spending recklessly or abandoning financial responsibility—it’s about recognizing that the richest retirement isn’t measured only by the size of your portfolio, but also by the depth of your relationships and memories you created along the way,” his article notes.

The Saskatchewan Pension Plan has been helping Canadians save for retirement for more than 35 years.

The plan is open to any Canadian who has registered retirement savings plan (RRSP) room. You can contribute any amount you want, up to your RRSP limit, to SPP each year. You can also consolidate savings from other RRSPs into SPP by transferring in any amount.

Once your hard-saved loonies are in the plan, SPP does the heavy lifting of investing. SPP contributions are professionally invested in a low-cost, pooled fund. When it’s gold watch time, your SPP income options include the possibility of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

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