Canadians’ retirement savings goals are “ambitious,” but we aren’t confident we’ll reach them: BMO research

While it appears Canadians are aware of the need to save for retirement, a recent survey carried out by BMO suggests more than a third of us aren’t confident we’ll reach our savings targets.

BMO recently published their findings via a media release.

Canadians, the release begins, now believe they need “$1.7 million to retire comfortably – up from $1.54 million last year.” However, a full 36 per cent of those surveyed “say they are unlikely to reach that target – an increase from 29 per cent last year,” the release notes.

“The findings indicate growing uncertainty about the future as rising costs and economic concerns challenge long-term financial planning goals,” the release adds.

“Setting savings goals is essential, but turning those goals into reality is where the real work begins,” states Terri Szego, Senior Portfolio Manager and Senior Wealth Advisor, BMO Nesbitt Burns, in the release. “We help clients refine their objectives and build clear, actionable plans, using advanced tools to show exactly what it takes to reach their long-term financial goals. Big numbers can feel overwhelming, so we break them down into achievable steps to keep clients confident, motivated, and on track to help them make real financial progress,” Szego states.

Tables in the release show that B.C. residents have the highest retirement savings target, $2.201 million. Next comes Ontario at $1.923 million, Alberta at $1.658 million, Saskatchewan and Manitoba at $1.278 million, Quebec at $1.237 million and Atlantic Canada at $928,000.

When you try and figure out the Canadian retirement savings rate, the release notes, you learn that:

• 28 per cent save less than five per cent of their income
• 38 per cent save five to 10 per cent of their income
• 21 per cent save more than 10 per cent of their income

The survey also looked at how much people are saving for retirement each month. According to the release:

• 10 per cent save less than $100
• 23 per cent save $100 to $499
• 10 per cent save $500 to $999
• 12 per cent save over $1,000

BMO experts suggest you should ramp up retirement savings as your income increases.

“Deciding how much to save for retirement is a personal choice and depends on many factors, but thinking in percentage terms can help with long term planning, so someone in their 20s, contributing 10 per cent a month to an RRSP can be a great start,” states Margaret Leong, Senior Investment Counsellor and Portfolio Manager, BMO Private Wealth, in the release. “As earnings increase throughout an individual’s prime working years, so should their savings, creating an opportunity to take advantage of compound growth and build a more secure retirement. Every extra dollar saved brings people closer to the retirement they envision.”

A solution to not saving enough, the release continues, is to continue working.

“Some Canadians say they plan to never retire and while their reasons to remain employed may vary, according to the survey, of those that are not retired, 14 per cent say they do not plan to stop working. While many of the Boomers surveyed indicate they are already retired, of those that have not retired, a full 27 per cent say they do not plan to stop working. The survey also reveals that 20 per cent of Gen X, 18 per cent of Millennials and 15 per cent of Gen Z say that they do not plan to retire,” the release tells us.

Closing thoughts from the release are to start retirement planning early, be disciplined about budgeting so that savings are treated “as a regular expense,” and that securities can be contributed to a registered retirement savings plan “in kind.” As well, the release concludes, consider seeking professional advice to help your savings efforts.

Among the advantages of the Saskatchewan Pension Plan is that there is no set “contribution rate” that is required – you can decide how much you want to contribute. You can start small and ramp up as your income increases or as circumstances permit.

The heavy lifting of investing those contributions will be managed – professionally, and at a low rate – by SPP, via its pooled fund. When it’s time to retire, your options include the security of a monthly lifetime annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

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More Canadians save, but many worry if they’re on target

Retirement savings in Canada offers us a good news, bad news story, writes Jim Wilson for Canadian HR Reporter.

Wilson reports that a recent Edward Jones Canada survey’s results suggest that Canadians “remain confused, anxious, and unprepared for life after work,” despite the fact that more of us are saving and joining workplace pension programs.

Of the 70 per cent of survey respondents who reported “negative emotions” about retirement savings, “40 per cent say they feel confused, 37 per cent are unsure they are maximizing their registered retirement savings plan (RRSP) opportunities, and 36 per cent are worried they are not contributing enough for a financially secure retirement,” Wilson writes.

The survey, he continues, uncovered a gap in knowledge about “retirement mechanics.”

“Fewer than six in 10 (56 per cent) of respondents understand the value of tax deductions and 55 per cent grasp the tax implications of withdrawals. Only 53 per cent feel confident about what happens when an RRSP matures, while 66 per cent say they understand the annual contribution deadline,” the article explains.

“What we’re seeing is a generation that knows they need to save for retirement but lacks the confidence that they’re doing it right,” Edward Jones Canada’s Julie Petrera tells Canadian HR Reporter.

The survey found that more Canadians (41 per cent versus 39 per cent) planned to contribute to RRSPs this year, with 15 per cent intending “to contribute the maximum,” Wilson reports. While nine per cent said they couldn’t afford to contribute, that’s better than the previous year, where 10 per cent said they wouldn’t, the article adds.

Wilson’s article then takes a look at some pension plan participation numbers from the Financial Services Regulatory Authority of Ontario (FSRA).

“In Ontario, workplace pension membership increased by more than 200,000 people in 2025, an average of 549 new members per day compared with 2024, according to data from the Financial Services Regulatory Authority of Ontario (FSRA),” the article reports.

“From those numbers, more than 175,000 people joined defined benefit (DB) plans (up six per cent) and more than 58,000 joined defined contribution (DC) plans (up nine per cent),” Wilson notes.

(In a DB plan, the benefit – or payout – is what’s “defined” by a formula that usually looks at your earnings and years of service in the plan. With DC, what is “defined” is how much money you (and sometimes your employer) contribute; your payout is based on how well the money has been invested when you apply to collect it.)

However, that good news is tempered a bit by the fact that the FSRA research found “that eight in 10 respondents have not fully developed a retirement plan and 66 per cent have not calculated how much money they will need in retirement,” Wilson reports.

“One in two cannot recall the last time they spoke to someone about saving, and 50 per cent of pension members do not read their annual pension statement, based on a survey of 1,000 adult Ontarians conducted in 2024,” he adds.

The article concludes by going over some of the steps HR departments can take to help employees on their retirement journey, particularly in starting the conversation about the retirement program early.

If you don’t offer a workplace pension program for your team, the Saskatchewan Pension Plan may be just what you’ve been looking for to attract and retain top talent.

Employers can choose to offer SPP to their employees – several options are available (Pensions Plans for Businesses | Employee Pension Plans). In all cases, the bulk of the administrative work, such as delivering annual statements and tax slips, is handled directly by SPP.

SPP is also a great “do it yourself” savings program for those among us who don’t have a workplace pension program.

Check out SPP today!

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Six ways to augment the modest retirement benefits Canada provides

Writing for Money Canada, Vawn Himmelsbach warns that federal government retirement benefits alone don’t provide much income.

“Canada Pension Plan (CPP) and Old Age Security (OAS) provide an important base for retirement income — but for many Canadians, they won’t provide enough support on their own,” she warns.

It’s apparent, her article continues, that most of us are assuming CPP and OAS will allow us to live adequately post-retirement, since a recent Canada Pension Plan Investment Board survey found “that the majority of adults (73 per cent) expect to or already rely on government benefits to cover their basic retirement income.”

But she continues, CPP and OAS “were never intended to fully replace your earnings while in the workforce but rather supplement it. Most retirees need additional sources of cash flow to maintain their lifestyle — and to protect themselves if one income stream falls short.”

Even if you are getting both, the income they provide (CPP maximum is $1,507.65 and full OAS is $742.31, with most people getting less than the full amount), the amounts “often fall well below what most retirees actually spend on basic expenses each month. Housing, food, transportation and healthcare costs can quickly exceed government benefit payments — especially for those who rent, carry debt or live in higher-cost areas,” she explains.

Himmelsbach then turns to six ways you can add income to that modest CPP/OAS base.

Having a workplace pension is an excellent starting position, she notes.

“If you’re one of the 48 per cent of Canadians that has a workplace pension, it can form a strong foundation to your retirement income,” she writes. However, workplace pensions, she adds, are “becoming less common outside the public sector.”

That brings us to the second category – personal savings.

“For many Canadians, personal savings do most of the heavy lifting in retirement. That usually means drawing income from a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) or both,” she reports.

RRSPs, she explains, “offer tax-deferral while you’re working, but withdrawals in retirement are taxable. That can make timing and withdrawal strategy especially important, particularly once RRSPs are converted to Registered Retirement Income Funds (RRIFs) and minimum withdrawals begin.”

“TFSAs work differently,” she adds. “Withdrawals are tax-free and don’t affect government benefits like CPP and OAS.”

Another way to save, she writes, is via Guaranteed Investment Certificates (GICs) and High Interest Savings Accounts (HISAs).

“GICs offer a guaranteed return over a fixed period, which can make them useful for planning specific expenses or building short-term income. The trade-off is access: Your money is typically locked in until the GIC’s maturity date, unless you choose a cashable option,” she explains.

“HISAs offer more flexibility. While returns may be lower than long-term investments, they allow retirees to access funds quickly, without worrying about market swings,” she notes.

There’s another category worth considering – dividend-paying investments, she continues.

“Dividend-paying investments can provide a steady income stream on top of potential growth in the long run. For retirees, that regular cash flow can help reduce the need to sell long-term investments to cover everyday expenses,” she reports. “Dividends from eligible Canadian corporations also receive favourable tax treatment through the dividend tax credit when they’re held in a non-registered account, which some retirees might find more appealing over interest income.”

Another way to augment monthly government retirement benefit income is by converting some of your savings to an annuity, Himmelsbach suggests.

“Annuities can provide something many retirees value: certainty. In exchange for a lump sum, an annuity pays out a guaranteed income stream, often for life. That predictability can make budgeting in retirement much easier,” she writes, adding that “some retirees use them to cover essential expenses — like housing, food and utilities — so those costs are always met, regardless of market conditions.”

Her final suggestion is real estate income.

“Becoming a landlord can provide steady rental income, but it also means dealing with maintenance, vacancies, taxes and tenant issues,” she states.

“Owning rental property can also tie up a large amount of capital. Carrying costs, repairs and property taxes don’t stop just because you’re retired. And income isn’t always predictable — especially during economic slowdowns,” she adds.

She concludes this informative piece by underscoring the idea that you will need multiple income streams in retirement.

“The goal isn’t to chase returns, but to assemble a mix of income streams that can support your lifestyle, manage risk and last throughout your sunset years. As with any major financial decision, it’s always in your best interest to consult a financial professional to help you reach your goals,” she states.

Did you know that members of the Saskatchewan Pension Plan can convert some or all of their accounts to a lifetime annuity – an option that carries no cost or monthly fee?

No matter which type of SPP annuity you choose (they are all detailed here in the Pension Guide), you will receive a monthly payment for life. Some options provide benefits for qualifying survivors too – the choice is yours.

See how SPP is helping deliver retirement security for Canadians – check out SPP today!

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“Yawning pension gap” seen as a retirement security threat: report

Writing for the Financial Post, Pamela Heaven cites multiple sources of research that show there’s a growing gap between Canadians with pensions, and those without.

She notes that while Canada ranks reasonably well on the Global Pension Index, a “glaring weakness… is the vast number of Canadians without a workplace retirement plan, especially in the private sector.”

According to the C.D. Howe Institute, she continues, there are more than nine million Canadians without a workplace plan, “which research has shown is key to retirement security.” Those numbers are even higher when you count the estimated 2.7 self-employed Canadians, she adds, again citing research from the Institute.

She notes there is a pronounced difference in pension coverage between the private and public sectors.

“Just 37 per cent of private sector employees are covered by some sort of retirement benefit, while 87 per cent of public sector workers are members of a registered pension plan,” she explains, citing research from C.D. Howe. The Institute also notes that private sector employers mostly offer defined contribution (DC) plans, while public sector employers still offer defined benefit (DB) plans.

What’s the difference?

According to Investopedia, “employer-sponsored retirement plans are divided into two major categories: defined benefit plans and defined contribution plans. As the names imply, a (DB) plan—also commonly known as a traditional pension plan—provides a specified payment amount in retirement. A (DC) plan allows employees to contribute and invest in funds and other securities over time to save for retirement.” The income from a DC plan depends on how well the funds have been invested at the time of retirement.

“`Even assuming the broadest definition of private-sector pension coverage, it still means that a very large number of Canadians are not covered by a workplace retirement plan of any kind’,” state the report’s authors, Keith Ambachtsheer, director emeritus of the International Centre for Pension Management at the Rotman School of Management and Common Wealth CEO Alex Mazer,” in the Post article.

Heaven’s article notes that here in Canada, “only about 19 per cent of small and medium-sized businesses with five to 499 employees in Canada provide a pension plan, compared to about 50 percent of American firms of similar size.” These figures come from recent research from the Healthcare of Ontario Pension Plan, the article adds.

Can anything be done to boost the availability of workplace pensions?

“Australia, the United Kingdom, and most recently Quebec require employers to enrol their employees in a workplace pension plan, and one day more jurisdictions in Canada may follow suit, said the report. But right now with the economic environment in such a challenging spot, forcing the benefit would be a hard sell,” Heaven writes.

One idea from the Ambachtsheer and Mazer is a “carrot” approach involving tax credits to help offset the costs of setting up a plan and making employer contributions.

“The Small Employer Retirement Plan Tax Credit would include credits for the expenses of setting up the plan and to cover 50 per cent of employer contributions for workers earning $50,000 a year, and 25 per cent for workers earning $100,000 for up to three years,” the article reports.

“At a cost to Ottawa of up to $2 billion over five years, the credit could expand coverage to another 125,000 to 500,000 Canadians and cut the cost of businesses offering a plan by nearly half,” the article adds.

This is a thought-provoking piece. Retirement income security is much easier to obtain for those with a workplace pension plan.

If your organization doesn’t offer a workplace pension plan, you might want to take a look at the Saskatchewan Pension Plan. SPP has a number of options available for employers who want to deliver a retirement plan for their teams. Full details can be found here.

SPP can scale up for large organizations and can also handle smaller ones, and SPP – and not you – handles the lion’s share of administration work. A pension can help you attract and retain employees, too.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

We’re a “super-aged” country – are we ready for old age?

Writing for The Globe and Mail, Meera Raman sifts through some of the recent findings from the National Institute on Ageing’s annual survey – and ask if our aging population is ready, financially and health-wise, for a long tenure as seniors.

“Canadians are getting older, but they’re not necessarily preparing for it,” she begins.

She recently attended a presentation on NIA’s recent research, conducted with Manulife and Abacus Data, where the NIA’s policy director Talia Bronstein stated that Canada is now a “super-aged” country, “with 15.7 million Canadians aged 50 and older.”

Raman writes that while there is no doubt we are all living longer, “the bigger question is whether those extra years will be healthy and financially secure ones. Right now, the data suggests we’re not quite there.”

The article notes that the NIA study found that only 29 per cent of those surveyed feel they can “afford to retire when they want,” down from 35 per cent just four years ago.

“Nearly a quarter (22 per cent) have saved $5,000 or less for retirement,” the article reports.

“The survey also paints a worrying picture of how older Canadians are feeling,” Raman’s article continues. “Positive feelings about aging fell to 57 per cent last year from 62 per cent in 2024, the steepest drop since the survey began. More than half of respondents said they experience loneliness, and 43 per cent are at risk of social isolation. Those numbers haven’t budged since 2022,” she adds.

And, she adds, while 81 per cent of those surveyed want to age in place – or “move to a smaller (home) for as long as possible,” she notes that “62 per cent (say) they haven’t made any modifications or plans to prepare their home for aging in place.”

She reports that aging in place can lead to “financial and emotional strain.” We can add from personal experience that there is also financial and emotional strain when parents need to move to a long-term care facility.

One good bit of news, her article concludes, is that more seniors are able to afford dental care.

“The share of Canadians who say they can’t afford dental care dropped to 11 per cent in 2025 from 16 per cent a year earlier. The NIA pointed to the new Canadian Dental Care Plan as a likely reason – an example of how public policy can lead to real, measurable change,” she notes.

This is a great article. Those among us who are not yet retired need to consider how much income they’ll receive in the future, and as well, what things may cost. They also need to think about staying healthy – perhaps taking on new activities – and staying socially connected.

Workplace pension programs are becoming scarcer these days. If you have such a program through work, be sure to sign up and contribute as much as possible.

If you are saving on your own for the future, the Saskatchewan Pension Plan stands ready to partner with you. SPP offers you the retirement savings infrastructure you need – professional investing in a low-cost, pooled fund. And when it is time to turn those savings into income, SPP can provide you with a lifetime monthly annuity payment (it never runs out) or the more flexible Variable Benefit.

Check out SPP today!

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Less than half of us have a workplace pension plan

A new report from IG Wealth Retirement suggests that “less than half of non-retirees in Canada have a workplace pension plan.”

The study’s findings were covered in a recent Canadian Press story authored by Daniel Johnson.

“IG Wealth Management’s annual retirement study said a generational shift is re-shaping how Canadians approach retirement as 48 per cent of non-retirees have a workplace pension plan, whether it be a defined-benefit or defined-contribution plan,” he reports.

A defined benefit plan is the type where what you get in monthly pension payments is what is “defined,” and is based on a benefit formula; the pension plan invests the money to deliver the promised amount. With a defined contribution plan, what you put in via contributions is the part that is “defined,” and what you get in benefits is based on investment returns over time.

Both types of plan are in decline, the article continues.

“The decline of defined benefit and contribution pension plans has fundamentally shifted the burden of retirement planning on to individuals in recent years,” Christine Van Cauwenberghe, head of financial planning at IG Wealth Management, states in the article.

The decline in availability of workplace pension plans has left many of us to save on our own for retirement, the article continues – a shift away from having a plan through work to provide you with a pension.

“Our data shows that while Canadians recognize this shift, many still lack a clear picture of what they need to save – and how to convert their savings into a ‘personal pension plan,'” Van Cauwenberghe states in the article.

Alarmingly, the article continues, the survey found that only “11 per cent of non-retired Canadians say they know how much annual income they will need in retirement, while half say they simply do not know at all.”

Only one-third had “a retirement plan and savings,” the report adds.

Even those, in the minority, with a retirement plan through work were fuzzy on the details, the article adds.

“The survey said about a quarter of employer pension holders didn’t know the details of their plan, including whether it is a defined benefit or defined contribution plan,” the article notes. As well, the report continues, “only four in ten respondents indicated an understanding of Old Age Security, a registered retirement income fund, or the tax implications of retirement income.”

“Few Canadians have accounted for longevity risks to their retirement plan, including inflation, health-care costs and market downturns. About 67 per cent of respondents have not stress-tested their plan for any potential major economic or financial risks,” the article concludes.

There are a few takeaways from this informative article. First, if you are among the lucky few who have access to a retirement program at work, be sure you are signed up and contributing to the max. Often there is an employer match in pension plans which increases your overall contribution.

If you don’t have any such plan, the Saskatchewan Pension Plan may be of assistance. SPP is a voluntary defined contribution plan, open to individuals or groups via an employer.

SPP takes the contributed savings dollars and invests them in our professionally managed, low-cost, pooled fund. SPP also handles all administration, issuing tax receipts before and after retirement, statements showing your progress, newsletters and other communications. This liberates employers offering SPP as their company plan from most of the administration work.

At the end of the day, when it’s time to retire, your SPP options include receiving a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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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!

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!

Join the Wealthcare Revolution – follow SPP on Facebook!

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.

Join the Wealthcare Revolution – follow SPP on Facebook!