Taking a look at what Canadian retirees actually live on

A recent Money Canada article by Noel Moffatt reveals some surprising numbers when it comes to the question of what Canadian retirees are actually living on.

“A newly retired Canadian opens their first government deposit to see their retirement benefits. The Canadian Pension Plan (CPP) and Old Age Security (OAS) payments are available, but they total only about $1,530 per month. After working for decades, that amount is often shocking to retirees,” Moffatt begins.

And, he continues, most of us – even with personal savings added in – don’t do much better than that average base.

“According to Statistics Canada, the median after-tax income for individual seniors in Canada is about $31,400 per year, or roughly $2,617 per month. That amount pales in comparison to most working wages in Canada,” he writes.

That got Moffatt wondering.

“So, how much do Canadian retirees actually live on each month? Where does the money come from, and is it enough?,” he asks.

“The median retirement income data for Canadians paints a more realistic picture for most households,” he writes. “For individual seniors, that figure drops to about $31,400 annually, or $2,617 per month. The median senior couple will earn about $64,300 per year,” he reports.

“These totals include all of the retirement benefits that Canadians rely on, including CPP, OAS, the Guaranteed Income Supplement (GIS), pensions and personal savings, as applicable,” Moffatt adds.

The article then takes a look at where this income is coming from.

“For most Canadians, retirement income comes from a combination of the three pillars: government retirement benefits, workplace pensions and personal savings and investments,” he explains. “The first pillar includes things like CPP, OAS and GIS Canada, which some seniors may qualify for. In 2025, the average CPP payment was about $772 per month, while the maximum benefit was $1,364.60. For OAS, the monthly payment was $713.34, and for seniors over 75, it was increased to $784 per month,” he continues.

For low-income seniors, the GIS can add up to $1,065.47 per month, Moffatt notes.

The second pillar, Moffatt continues, is “the employer-provided pension.”

While pensions can be a valuable part of the overall income picture, not that many Canadians have access to them, Moffatt notes. “According to Statistics Canada, more than 6.6 million Canadians are a part of registered pension plans, even though fewer than one-third of workers have employer-sponsored pensions,” he notes.

The final pillar is personal savings, he writes.

“This includes investments in registered retirement savings Plans (RRSPs), registered retirement income funds (RRIFs), Tax-Free Savings Accounts (TFSAs) and non-registered investments. For Canadians without pensions, these savings often determine how comfortable retirement feels,” he continues.

The message in this article is quite clear. If you are thinking that you don’t really need to save for retirement because you’ll get CPP, OAS and maybe GIS, those benefits deliver a very modest benefit.

If you don’t have a pension program through work, don’t worry – all Canadians with available RRSP room have the option of joining the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution plan. You decide how much to contribute – any amount up to your annual RRSP limit – and SPP does the rest.

You can also transfer in any amount from other RRSPs you may have.

Contributions are invested in our low-cost, diversified, professionally managed pooled fund. At retirement, you will have created your own retirement income pillar – and your SPP funds can be collected as a monthly lifetime annuity payment or the more flexible Variable Benefit, among other options.

Check out SPP today!

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How to catch up if your retirement savings efforts haven’t really got on track

Let’s face it – life is expensive, especially if you’re looking after kids, renting or owning a home, and still finishing off paying down student debt. These legitimate life expenses can make saving for retirement seem impossible.

But, writes Vishesh Raisinghani for Money Canada, there are a number of ways you can jump-start your retirement savings and catch up.

He begins by noting that for most people, it’s usually not until “the final five years before they retire” that their “earnings have peaked, their children are self-sufficient, and their mortgage is close to being paid off.” This is when “your top priority is typically boosting your (retirement) nest egg as much as possible,” he adds.

Yet, perhaps not surprisingly, many in the pre-retirement years haven’t saved much, Raisinghani writes.

“Many older Canadians still aren’t as fully prepared for retirement as they’d like to be. A 2025 survey by the Healthcare of Ontario Pension Plan found 36 per cent of adults aged 55 to 64 have $5,000 or less saved for their retirement, with only 21 per cent having over $100,000 in savings,” he notes.

So, how does one turbocharge one’s savings? Raisinghani gives us a couple of strategic ideas.

First, he suggests, “max out your tax-advantaged accounts.”

“If you’re close to retirement age and have a registered retirement savings Plan (RRSP), you could take advantage of any carryover room you may have from previous years. That’s because any Canadian with an RRSP can accumulate unused contribution room year after year and carry it forward indefinitely — creating a significant opportunity for you to `catch up’ and build your savings over the last five years of your career,” he explains.

While the 2026 RRSP limit is $33,810 or 18 per cent of your income (whichever is lower), “many Canadians have far more room available because of unused carryover from previous years,” he adds.

Another catch-up strategy would be deferring your Canada Pension Plan (CPP) and Old Age Security (OAS) benefits until you are 70, Raisinghani notes.

“If you wait until you turn 70 to collect CPP payments, you could significantly increase the monthly amount you receive,” he writes. “That’s because even though you’re eligible to start collecting CPP at 60, the maximum monthly amount you could receive at that age is 36 per cent less than if you were to start receiving at 65.” It’s 42 per cent more if you wait until age 70 to collect, he adds.

Similar rules apply to OAS, he notes.

Consider, he adds, moving to a professionally managed investment portfolio rather than doing it yourself.

“Not everyone knows how to do these things on their own, especially when it comes to calculating withdrawal rates, factoring in variables like inflation or putting together a retirement portfolio that will go the full distance. That’s why there are professionally managed portfolios that can do the work for you, building the right mix of investments from various asset classes that can help you maximize your returns and minimize risk,” he suggests.

Another important idea is to know, in advance, the tax consequences of withdrawing from your savings. Taxes are higher, he notes, on investments that pay out interest. And you should make sure you are making maximum use of your Tax Free Savings Account.

You’ll also need to have a retirement “lifestyle plan” in place, he recommends.

“You need a lifestyle plan just as much as a withdrawal or tax plan. If you want to continue working side gigs or part-time hours, include that in your plan. If you want to spend more time travelling, remember to add that as well,” he explains. In other words, you need to spell out what you intend to do with all your time, so that your savings support that lifestyle.

Contributions to your Saskatchewan Pension Plan account are based on your available RRSP room, so if you have a lot of carry-forward room your SPP account can benefit from a large top up.

SPP also permits you to transfer any amount into the plan from other RRSPs you may have. This will consolidate your retirement nest egg.

All hard-saved dollars are invested in SPP’s professionally managed, diversified, low-cost pooled fund, where they will grow in the years leading up to your retirement. And when that day comes, your options include the security of a lifetime monthly annuity payment, or the flexibility of the Variable Benefit.

Check out SPP today!

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Several strategies can help those who won’t hit retirement “finish line” until after 65

Writing for CP24, certified financial planner and noted financial commentator Christopher Liew observes that a growing number of Canadians are finding that their working life will continue long past the traditional retirement age of 65.

“For decades, 65 was the finish line. You worked, you saved, you retired. But that script is quietly being rewritten across the country,” his article begins.

Citing data from Statistics Canada, he reports that “more Canadians than ever are staying on the job past 65. For some it’s a necessity, for others it’s a choice, but either way, the trend is here.”

As of 2025, he writes, 15.2 per cent of Canadians were still at work after age 65, according to Statistics Canada. That marks the fifth year in a row that the over-65 working cohort has increased in numbers, he adds, and means there are 1.2 million seniors still in the workforce.

And while the average retirement age was just 60.9 as recently as 1997, as of 2025 it has risen to 65.4 years, he adds. “Self-employed Canadians retire even later, at an average of 68.4,” he remarks.

So, he continues, if “done right,” working for a few extra years “can dramatically improve the rest of your life.”

What strategies should “delayed” retirees employ? Let’s read on.

Liew recommends that those working past 65 delay receiving the Canada Pension Plan (CPP) and Old Age Security (OAS).

“This is the single biggest lever most Canadians ignore. According to the Government of Canada, every month you delay your CPP retirement pension past the age 65 increases your payment by 0.7 per cent. Wait until 70 and you’ll get a permanent 42 per cent boost,” he reports.

It’s a similar story for OAS, he notes. “OAS works the same way, but at 0.6 per cent per month, for a maximum 36 per cent permanent increase at 70. If you’re working past 65 and don’t need the income yet, deferring is almost always worth a serious look,” he advises.

A second benefit of deferring OAS if you are still working is avoiding the OAS “recovery tax” or clawback, Liew notes.

“If you’re earning a good income past 65, taking OAS at the same time can backfire. For the July 2026 to June 2027 benefit year, OAS starts to claw back once your net income hits $93,454, and disappears entirely around $152,000 if you’re aged 65 to 74,” he warns.

A third strategy of working longer is continuing to build up your retirement savings via your registered retirement savings plan (RRSP) or Tax Free Savings Account (TFSA).

“Working longer means more contribution room and more time for tax-sheltered growth. You can keep contributing to your RRSP until Dec. 31 of the year you turn 71. And since your TFSA limit keeps accumulating regardless of work status, every extra year of earnings is a chance to top it up,” he writes.

“I’ve always thought this is one of the most underrated benefits of working past 65. A 67-year-old maxing out their TFSA and adding to a spousal RRSP can quietly add tens of thousands in tax-sheltered savings before they even start drawing down,” he explains.

Liew adds a couple of additional strategic thoughts.

Those who are 65 and older but still working can still claim the pension income tax credit “on up to $2,000 of eligible pension income, plus a matching provincial credit.” The “trick” is to make sure you are drawing at least that amount from a pension plan or registered retirement income fund (RRIF) withdrawal, he adds.

A last bit of advice is to “phase in” your retirement, rather than making a “hard switch” from working to not working.  

“A growing number of Canadians are moving to part-time work, consulting, or seasonal gigs in their late 60s. Wage growth for workers 55 and older actually outpaced every other age group in March 2026, at 5.2 per cent year-over-year, according to the Labour Force Survey. Older workers aren’t just hanging on, they’re being rewarded,” he concludes.

Members of the Saskatchewan Pension Plan have the option to defer converting their savings into retirement income until the age of 71.

Their contributions will continue to grow in SPP’s professionally managed, low-cost pooled fund. When it’s finally time to draw income from the account, options include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

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Fixing the `wobbly leg’ of the retirement stool – workplace pension access

Writing in The Globe and Mail, Meera Raman notes that one of the legs of the “three-legged stool” of retirement – workplace savings – is a bit wobbly these days.

The idea, she explains, is that workplace savings, along with the other two “legs,” which are government savings and personal savings, are traditionally expected to support the retirement income needs of Canadians.

However, she continues, workplace pension programs are “one of the shakier legs of the stool,” thanks chiefly to the fact that so many people today don’t have such coverage.

“More than nine million Canadians don’t have access to a workplace retirement plan, and the gap is especially noticeable at small and medium-sized businesses,” she writes. “Fewer than one in five Canadian employers with five to 499 employees offer any kind of retirement benefit, according to a March report from the C.D. Howe Institute. In the United States, nearly half do,” she adds.

Despite what she describes as a “strong public pension foundation,” the lack of workplace retirement coverage here “is one major reason Canada finished just 16^th out of 52 countries in the 2025 Global Pension Index.”

The lack of a workplace pension puts a strain on Canadians, she writes.

“Without workplace savings, retirees have to rely more on personal savings, which can be unreliable because of inconsistent contributions and the ability to draw down on accounts more easily,” she reports.

So why don’t more small employers offer retirement programs to their team members?

“The C.D. Howe Institute says one of the biggest reasons smaller employers don’t offer plans is cost. Setting them up and managing them can be expensive and complicated for businesses without large HR departments or benefits teams,” she notes.

The article notes that major insurance companies, such as Sun Life, are designing lower-cost pension program options for smaller employers. (The Saskatchewan Pension Plan, we should add, also offers pension plans designed for employers (Pensions Plans for Businesses | Employee Pension Plans) where the lion’s share of administrative work is carried out by SPP.

There’s a benefit for employers that offer pension programs, the article continues.

“A poll commissioned by Sun Life found more than a quarter of working Canadians say financial stress is hurting their productivity and engagement at work. Another 87 per cent said employers that help workers save earn greater loyalty from staff,” writes Raman.

The article concludes by noting that the C.D. Howe Institute is suggesting policy changes to encourage smaller employers to offer pension plans.

“In a recent report, the think tank proposed a tax credit with two parts: one to help cover startup costs, and another to help subsidize employer contributions,” she concludes.

There’s little question that having a workplace pension plan helps employers attract and retain employees.

The Saskatchewan Pension Plan is open to individuals or employers looking to offer a workplace plan. SPP’s role is to professionally invest all contributions received in our low-cost, pooled fund.

At retirement, a member’s options include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

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Canada slips to 20^th place in global retirement index

Canada has made a significant drop in the 2025 Natixis Global Retirement Index, coming it at 20^th spot among 44 developed nations. That’s seven places lower than the previous year’s index, reports MSN.

The article suggests “declines in material well-being and health indicators” are to blame for the change in ranking.

“Norway, Ireland, Switzerland, Iceland and Denmark lead the rankings, excelling in areas such as finances, quality of life and health outcomes. Experts point to rising unemployment, reduced life expectancy and growing healthcare demands as key challenges for Canada’s retirees,” the article continues, quoting an earlier report from Money Canada.

Higher unemployment, the article says, is the likely cause of the decline in the “material well-being” score. “Health scores also fell, reflecting lower life expectancy and a dip in insured health expenditure, alongside broader labour market challenges reported by Statistics Canada,” the article reports.

Both factors “may signal long-term pressures on retirement security,” the MSN article continues. “The National Institute on Ageing projects long-term care costs will rise from $22 billion to $71 billion by 2050, which could strain both public and private resources. These trends, coupled with the widening gap between healthy life expectancy and overall life expectancy, may limit the years Canadians can enjoy an active retirement,” the article adds, again citing a report from Money Canada.

“Global data from Natixis shows 66 per cent of people are saving less due to higher costs, and 38 per cent feel inflation is eroding their retirement dreams. In Canada, a Healthcare of Ontario Pension Plan (HOOPP) survey indicates that 59 per cent of unretired Canadians believe they may never retire, while experts urge diversification, dedicated healthcare savings, and attention to lifestyle factors such as social connection and purpose. Rising costs and uncertainty reinforce the need for proactive planning,” the article states, again quoting from Money Canada.

The article turns to a report from the Motley Fool blog to explain how the Natixis survey works.

“The Index assesses 18 indicators across four categories: finances in retirement, material wellbeing, health, and quality of life, each contributing to a maximum score of 100. Country scores reflect factors such as inflation control, employment, income per capita, environmental quality, and healthcare access,” the article states. “Canada’s strong performance in certain financial stability measures was outweighed by weaker results in employment and health, while top-ranked Norway and Ireland benefited from robust labour markets, high life expectancy and effective inflation management.”

If you are among the fortunate few who belong to any type of pension arrangement through your workplace, be sure you have signed up and are contributing as much as possible.

If you don’t have such a plan – or if you are an employer thinking of offering a pension plan to your team to help attract and retain talent – the Saskatchewan Pension Plan may be just what you’re looking for.

Individuals can sign up as long as they are Canadian citizens with available registered retirement savings plan room.

Businesses have several options if they want to offer SPP as their company pension plan, including the start-up pension plan, an employer match plan, a basic pension plan and a performance pension plan. Full details on our offerings for business can be found here (Pensions Plans for Businesses | Employee Pension Plans).

Savings dollars – whether they come from individuals or groups – are invested in SPP’s low-cost, professionally managed pooled fund. Options upon retirement include the security of a monthly lifetime annuity payment, or the flexibility of the Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Some strategies to consider when embarking on a retired, fixed income life

When you’re working, and need more income, there’s always the chance the boss will give you a raise, or a bonus. Or maybe you can find a better paying job down the road.

But when you’re retired, with an income that is more or less fixed, you need to develop some other coping strategies, writes Mary Castillo, a Saskatoon-based credit counsellor, for the Financial Post.

When your living costs soar, and your income stands pat, it’s time for a rethink, she begins.

“Many retirees are therefore reconsidering their financial plans, not due to poor decisions but because the economic landscape has changed and retirement can be expensive. Fortunately, there are practical ways to supplement your retirement income without sacrificing the lifestyle you have built,” she states.

As a background thought, she notes that “people tend to spend to the level of their income, whatever that income happens to be. When costs rise faster than income does, something must give. For retirees, that tension can feel especially stressful because the usual options, such as asking for a raise or picking up more hours, are not available.”

And while your invested retirement savings can help, your income can vary, Castillo explains. “Market volatility is real and a portfolio that looked healthy at retirement can look different a few years later, particularly for those drawing down their savings during a downturn.”

So, what to do?

Trimming expenses

“Before exploring ways to bring in more income, it is worth taking a careful look at your current budget,” she writes. “Tracking actual spending for a month or two often reveals expenses that have quietly crept up or debt payments that consume significant portions of your income. Trimming expenses will not solve everything, but it creates breathing room while you explore other options,” she continues.

Can you take CPP and OAS later?

“If you retired early and have not yet started collecting Canada Pension Plan (CPP) or Old Age Security (OAS) benefits, the timing of when you begin drawing them deserves careful thought. You can choose to start receiving CPP as early as age 60 with reduced payments or delay receiving it to increase your monthly amount, up to age 70,” she suggests.

The same is true for OAS benefits, she notes.

Working part-time

“Returning to paid work is a straightforward way to top up retirement income and for many retirees it adds welcome structure and social connection. The key is to find work that matches your energy, schedule and interests, not just any paycheque. Also be sure that you are not taking on work because family members are costing you more than you can afford,” Castillo states.

Contract or project work may suit you if you have industry expertise, she adds. Or you could try something totally different from what you’ve done before.

“Seasonal and flexible retail or service jobs are another option, especially for those who enjoy interacting with people and want predictable hours. Many employers appreciate older workers for their reliability and customer-service skills,” writes Castillo.

Income from hobbies

“Many retirees find their hobbies can also generate income,” she writes.

“Woodworking, jewellery making, photography, baking, sewing or gardening can lead to sales at local markets, online platforms such as Etsy or through community connections. Teaching skills such as music lessons, language tutoring or cooking classes offers another way to earn flexible, modest income,” Castillo adds.

Your home as an asset

Can you rent out a basement suite? Castillo says rental income from a spare room, driveway, or basement apartment is a nice way to add extra income. Maybe you can rent out your cottage when you’re not using it. Get professional advice if you are going the rental route, she advises.

“Retirement is not a fixed destination. It is a phase of life that keeps evolving. Adapting your financial approach, even modestly, can make a meaningful difference in how comfortable the years ahead will feel,” Castillo concludes.

Saving on your own for retirement, and feeling a little daunted by the ups and downs of the markets?

Let the experts at the Saskatchewan Pension Plan manage the chopping investment waters for you. SPP will carefully invest your precious savings dollars in our low-cost, professionally managed pooled fund, a fund that has boasted steady returns since its inception 40 years ago.

When it’s time to turn savings into retirement spending money, SPP can do it all in-house. You can choose a lifetime annuity payment you’ll receive each month, or the more flexible Variable Benefit option.

Check out SPP today!

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Avoid these common retirement regrets

You’ve given back your ID badge and parking pass and company mobile phone – the party’s been and gone, and work is finally in the rear-view mirror.

What could possibly go wrong?

Well, writes Daniel Liberto for Money.ca, there are half a dozen common “retirement regrets” that the newly retired are reporting.

He acknowledges that “the dream of early retirement is powerful: more freedom, more time, more life. For many Canadians, they’re working towards a plan to step away from the daily grind before the traditional age of 65 — but sometimes, the leap happens faster than planned.”

And while things can often work out fine, they also may not, he warns.

Not saving enough

“Having more free time quickly loses its appeal when it comes with constant financial anxiety. Among the most common complaints from early retirees is that savings and other retirement income don’t stretch nearly as far as they expected,” Liberto reports.

He cites a recent BMO study that found 36 per cent of Canadians “are worried they won’t have enough money to support their retirement because prices continue to climb.”

It’s almost like compounding but in reverse, he explains. “The number of years your savings need to support you keeps growing, while the time you have to contribute keeps shrinking. What felt like a comfortable nest egg at 58 may feel very different at 78.”

OK, so keep saving before and after retirement is our takeaway.

Underestimating costs (especially healthcare)

Many folks figure their retirement spending will be the same as it was before they retired, notes Liberto.

“What they often underestimate is the long-term cost of inflation and another financial risk: The loss of employer-provided supplemental benefits covering prescriptions and other medical needs,” he warns. “According to Statistics Canada, approximately 66.8 per cent of employed Canadians have workplace medical or dental benefits through their main employer. When those benefits disappear at retirement — particularly for those leaving before age 65 — the financial gap can be significant,” he adds.

Be aware of this, he suggests, and consider getting private coverage if your workplace benefits end when you retire. Find out what your province or territory covers in advance, when it comes to drugs and other costs.

Down the road, long-term care costs can be huge. While provinces “subsidize” long-term care, it is not free. Costs start around $2,000 a month for a private room and can be far higher depending on the level of care you need, he warns.

So, the second regret is not considering post-retirement care costs in your planning efforts.

Claiming CPP too early

Many of our friends took the Canada Pension Plan (CPP) as soon as possible, at age 60 – even while still working. This decision can lead to regret, the article suggests.

Liberto notes that “claiming (CPP) before the standard age of 65 comes at a steep price. Payments are permanently reduced by 0.6 per cent for every month you collect before age 65, up to a maximum reduction of 36 per cent if you start at 60. On the other hand, if you defer CPP past age 65, payments increase by 0.7 per cent a month — or 8.4 per cent annually — for a maximum increase of 42 per cent if you wait until age 70.”

“Like CPP, Old Age Security (OAS) can be deferred up to age 70, increasing payments by 0.6 per cent each month, for a potential increase of 36 per cent,” he reports.

“It may be worth discussing with a financial advisor whether using personal savings and delaying CPP and OAS would be beneficial to max out your lifetime government pension income,” he adds, noting that some advisors suggest you spend your registered retirement savings plan (RRSP) money first before starting government benefits.

Skipping long-term care insurance

You may regret not considering long-term care insurance, the article continues.

“The Canadian Life and Health Insurance Association (CLHIA) notes that long-term care (LTC) insurance policies are available in Canada and can help offset the costs of care that government programs don’t cover — approximately 22 per cent of the total cost. Considering the rising demand and growing wait lists for subsidized LTC, financial planners are recommending exploring coverage options while premiums are still manageable,” Liberto writes.

Missing structure, purpose and social connection

“Academic research shows that leaving the workforce early is often accompanied by a reduction in social networks and mental engagement, both of which are strongly associated with overall well-being,” he reports.

“Financial advisers and retirement coaches encourage people on the verge of retirement to develop a concrete plan — not only for their finances, but also their time, social connections and sense of purpose,” he adds.

Difficulty re-entering the workforce

Many of us, writes Liberto, assume (perhaps incorrectly) that if post-work life isn’t affordable, we can just head back to work.

“Age discrimination in Canadian workplaces is a documented challenge. According to a study by Indeed Canada, 14 per cent of all Canadian workers perceive their age as a barrier to employment — a figure that doubles to 28 per cent among those aged 65 and older. A separate report from Access Work Service estimates that approximately 60 per cent of Canadians aged 45 and older have experienced workplace age discrimination,” he warns.

This article raises some very important points that most near-retirees aren’t thinking about. The focus is usually on savings.

If you don’t have a retirement savings program through work, and aren’t sure how to go about saving on your own, the Saskatchewan Pension Plan may be just what you need to get your savings plan going.

You can contribute any amount up to your RRSP limit and can as well transfer in any amount from other RRSPs you may have. This will consolidate your retirement nest egg. SPP will take your savings and grow them in our professionally managed, low-cost pooled fund. At retirement, income options include the security of a lifetime monthly annuity payment, or the flexibility of the Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Boomers are the wealthiest, but younger generations can catch up

In an article for Money Canada, Rebecca Holland notes that while boomers are Canada’s “wealthiest generation ever,” younger generations have the means to catch up.

“Baby boomers have long held the largest share of this country’s financial assets, and the numbers back it up,” she begins.

“The average boomer household’s net worth rose to $1,458,282 in the second quarter of 2025, according to StatCan figures,” Holland continues. Boomers, she notes – this time citing data from TD Asset Management – control “almost 50 per cent of Canada’s wealth – while millennials, despite making up the largest share of the labour force, hold just 10 per cent.”

How, she asks, did the boomers get to the top of the heap?

“Real estate appreciation was one way — boomers bought homes when prices were modest, and those properties generated wealth over the years. Many retirees received defined benefit (DB) pensions, something far less common today. And boomers hit their prime earning years during one of the longest stock and bond market rallies in history,” she explains.

There is a bit of a subset here, she remarks. “TD Asset Management confirms that while boomers collectively hold close to half of Canada’s wealth, a large portion of that is concentrated at the top of the income ladder,” notes Holland.

What can other boomers do prior to retiring to close the gap with their peers? Holland’s article recommends they consider working up to age 70, so that their Canada Pension Plan (CPP) and Old Age Security (OAS) benefits get a significant boost.

“For boomers still in good health, delaying both CPP and OAS can add hundreds of dollars monthly in permanent, inflation-indexed income that will never run out,” she advises. Downsizing in retirement, she continues, is a good way to “unlock” some of the equity in their larger, existing homes.

Gen Xers, Holland says, born between 1965 and 1980, aren’t going to have the security of a DB pension like their parents. Most, if they have a pension at all, take part in defined contribution (or DC) plans, which don’t offer a guaranteed income in retirement, but one based on the success of investment results, she notes.

It’s a group that, according to a recent Healthcare of Ontario Pension Plan study, have their doubts about affording retirement, with 20 per cent fearing they will never be able to retire. But, Holland reassures us, there is still lots they can do to improve their chances.

“Maxing out registered retirement savings plan (RRSP) and Tax Free Savings Account (TFSA) contributions is the most important starting point. The 2026 RRSP contribution limit is $33,810 — or 18 per cent of the previous year’s earned income, whichever is less — and any unused contribution room from that carries forward. That carry-forward is a lifeline for anyone who couldn’t contribute in previous years, perhaps when income was lower. Additionally, the TFSA limit sits at $7,000 for 2026, with a cumulative lifetime limit of $109,000 for those eligible since 2009,” she points out.

As well, she advises, Gen Xers must “tackle debt… Gen X households aged 46 to 55 carry the highest average non-mortgage debt of any age group — $34,564 as of Q4 2024, according to Equifax Canada.”

It’s debt that is the biggest savings obstacle for Canadian millennials. They and their GenX cousins “together carried $1.1 trillion in outstanding credit balances as of Q4 2024 — a 10 per cent jump from the year before, according to TransUnion Canada. The average non-mortgage debt for each Canadian consumer hit $21,931, with debt-to-income ratios remaining high. Meanwhile, disposable income for millennials crept up to just 1.7 per cent year-over-year in Q2 2025, compared to 3.9 per cent for all households — making it harder to chip away at debt and save for retirement at the same time.

But there’s good news for millennials, writes Holland.

“Millennials who are young enough to still have two or three decades of earning ahead of them have two of the most powerful financial tools available — time and compounding growth. Automating savings — directing even a small, fixed percentage of each paycheque into an RRSP or TFSA — removes the decision-making tension that can lead to missing contributions,” she writes. They should set up Registered Education Savings Plans for their kids, the article adds.

Interestingly, the youngsters in the Gen Z cohort seem to be doing better than their older peers, Holland writes.

“Data shows the youngest generation of Canadian adults may be the most financially self-aware of all. The National Payroll Institute’s 2025 Annual Survey of Working Canadians by Canada’s Financial Wellness Lab found that Gen Z workers are saving an average of 11 per cent of each paycheque — a higher proportion than any other generation,” she reports.

“The main focus for this generation is maximizing employer matching in workplace pension or group RRSP plans — free money that too many workers leave on the table — while also taking full advantage of the TFSA for tax-free growth. With cumulative TFSA room growing at $7,000 every year, a young Canadian who starts contributing early and invests consistently can build a substantial, tax-free nest egg over a 40-year career,” she explains.

Her closing thoughts are as follows – be sure to know your government pension options in advance. Maximize registered accounts first. Get debt under control, she concludes – get going on this yourself “and don’t wait for the inheritance.”

A couple of key themes that run through this article are relevant for current and future members of the Saskatchewan Pension Plan. Once you join the plan – the earlier, the better – be sure to make automatic contributions each payday. SPP makes it easy to do this (PAC-PCC-application.pdf).

The second idea is the power of compounding – investing over a long time frame. SPP invests your savings in a professionally managed, low-cost fund that has had an average rate of return in excess of eight per cent throughout SPP’s 40-year history.

You save, we invest – and when it’s time to turn savings into income, your SPP options include the security of a lifetime monthly annuity payment, or the flexibility of our Variable Benefit.

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Millennials face a variety of barriers to saving

Writing for MoneyLion, Dawn Allcot identifies a number of barriers that are impacting the ability of millennials to save for retirement.

Millennials are today between 29 and 42 years of age. Allcot refers to them as “the generation often scolded for their love of pricey pleasures like Starbucks and avocado toast (that) now find retirement looming just a few decades away. Only 42 per cent are on track to retire by age 65,” according to research from Vanguard, she writes.

So, what’s blocking their savings efforts?

Top of the list, the article notes, are student loans.

“Student loans are a big problem for millennials, states Quote.com finance expert Melanie Musson in the article. “Laws that keep loans affordable for lower-income individuals also leave them with just as much debt 30 years after college or graduate school as they had when they left. It’s a huge problem to pay toward the loan every month without chipping away at it.”

The rising cost of housing is another barrier to saving, the article continues.

“Millennials are juggling mortgages that cost more than their parents’ first homes,” Julia Bartak, financial advisor at Edward Jones, tells MoneyLion. “High home prices and high interest rates mean they’re devoting larger portions of income to housing than prior generations. There’s an emotional response to feeling like all their financial bandwidth is going toward their mortgage, and that can push retirement savings to the back burner.”

Rounding out the top three is credit card debt.

“Debt is holding many millennials back from properly preparing for retirement. Experian data shows that 77.9 per cent of millennials have credit card debt, with average balances close to $7,000,” the article notes. This data is U.S.-generated, so that figure is in American dollars.

The tough economy and related difficult job market is also impactful when it comes to saving, the article notes.

 “Wages haven’t matched housing, childcare and healthcare cost increases. Basic expenses are taking up a big chunk of their income, so they’re not saving consistently. When you fall behind it’s hard to catch up, even as a high earner today,” the article notes. While we may not have the same healthcare costs as folks in the U.S. must deal with, the rising cost of living is a hot topic – and savings barrier – here in Canada.

Some millennials are part of the “sandwich generation,” where they are looking after aging boomer parents while raising kids of their own.

“Millennials are sandwiched between the declining baby boomer generation and the booming Gen Alpha,” states Mawuli Vodi of Financially Present in the article. “They have retiring parents who may or may not be able to support (their children) because they are settling into their own wants. Meanwhile, their Gen Alpha kids require a significant amount of help. Even if all goes well, Gen Alpha may end up living at home with their millennial parents.”

And even if the millennials inherit, a general lack of financial literacy may limit the benefits of the transferred wealth, the article concludes. Those receiving an inheritance need to “manage it well, protecting yourself and your family. Lack of financial literacy and poor planning is the biggest threat,” the article warns.

If you make long-term savings a part of your monthly budget, and automate that process, the money will zip into savings before you have a chance to think about spending it and will quietly build for your future.

The Saskatchewan Pension Plan provides great flexibility around automating contributions. First, it is you who decides how much you want to save. Then, you can set up pre-authorized contributions from your bank or credit card (PAC-PCC-application.pdf).

Once SPP receives your contributions, we invest them in our low-cost, professionally managed pooled fund, growing your savings until it’s time to collect them at income. When that day arrives, your choices include the security of a monthly annuity payment for life that can never run out, or the more flexible Variable Benefit.

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Retirement coaching now focuses on non-financial goals as well as money-related targets

Writing for Advisor.ca, Saman Khodai observes that today’s retirement coaches need to cover off the “non-financial variables” of retirement – such as “life-readiness” – as well as the traditional money-related ones.

Retirement, he continues, has not only become a phase of life that “lasts longer” than it used to but “an increasingly complex behavioural transition.”

Retirement coaches therefore must also help “provide clients genuine life-readiness clarity – a genuine understanding of their values, goals, and the steps required to live a fulfilling life.”

That’s a big change, the article continues.

“Advisors routinely coordinate with tax professionals, lawyers, insurance specialists and other experts when client situations demand depth and specialization. Retirement coaching fits naturally inside that ecosystem,” writes Khodai.

Factors like building a “compliant foundation” for retirement income, planning, implementation, as well as monitoring and review remain key parts of the advisor’s role, he notes.

However, he adds, it’s no longer just about the money.

“In retirement planning, a simple reality shows up repeatedly: a plan can be technically sound and still struggle in the real world if the client’s lived retirement does not match the assumptions embedded in the plan. Durability depends not only on numbers, but on whether the plan fits how the client will actually live,” he explains.

“Retirement today often involves more transitions over a longer horizon: partial work, caregiving, relocation, changing health, evolving relationships and reinvention. Many people do not move from work to rest in a single step. Often, they move through stages that require decisions about roles, structure, identity and meaning,” adds Khodai.

Thus, today’s retirement advisor needs to help answer client questions like how “they will maintain structure in retirement,” and how to maintain old relationships while developing new ones. Other topics now top of mind include ways to make retirement meaningful, as well as identifying any “trade-offs” clients must make to afford the retirement they want.

Planning assistance is needed for these non-financial needs, the article tells us.

It’s important for the prospective retiree to establish “a clear statement of priorities and non-negotiables” for retired life, Khodai continues. What are the “explicit trade-offs” the client is willing to make to achieve those priorities? These points must be gathered into an action plan, the article adds.

It’s also helpful to have “a map of roles, relationships and social connection that supports wellbeing,” the article notes.

This type of gameplan, Khodai writes, is beneficial for the client.

“When life-readiness clarity is higher, clients tend to make decisions more consistently, communicate changes earlier and implement with less friction. They are better able to articulate what is driving a change in direction and whether it is a temporary reaction or a structural shift. They are also more likely to treat course correction as a normal part of a long transition rather than as a sign something failed,” he explains.

This is a very helpful article for those who have not yet retired, as it looks at the critically important idea of what you will do with all the time you’ll now have, and who you will be doing it with. Having good social connections – and building new ones – is perhaps just as important as building retirement income.

Having income is still a key piece of the retirement planning puzzle. If you have a retirement program through your work, be sure to sign up and contribute as much as you can.

If you are saving on your own for life beyond work, the Saskatchewan Pension Plan can be your trusted savings partner. You contribute what you want – and you can transfer in funds from any registered retirement savings plans you may have – and SPP does the rest.

Our team will professionally invest your hard-saved loonies in our low-cost, pooled fund, growing them over time. When it is time to turn savings into income, SPP options include the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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