Across the pond, cooling inflation has people saving for retirement again

Over in the United Kingdom, there are signs that inflation is starting to go into retreat – an increased number of folks are starting to save for retirement again.

Writing for Yahoo! Finance UK, Helen Morrissey reports that research from “Hargreaves Lansdown shows only 17 per cent of people said they had stopped or cut back pension contributions over the past six months. This is down from well over a fifth of people (22 per cent) who did the same thing this time last year.”

Translated – less people aren’t saving for retirement. That means more people are, the article explains.

“There are also signs that people are looking to rebuild their pensions (retirement savings) after these tough times, with seven per cent saying they had chosen to boost contributions over the past six months. A further two per cent said they had hiked contributions after previously cutting back,” the article continues.

While it’s good news that there has been a turnaround in retirement saving – generally amongst younger Brits – the article cautions that there is still more work to do on the savings file.

“The most recent Hargreaves Lansdown savings and resilience barometer which shows just 40 per cent of older households are on track for a moderate retirement income compared to 43 per cent of Generation X households,” the article reports.

What do you do if you have not been able to save for retirement during the inflation wave?

“If you have had to take the difficult decision to cut back, or even stop (saving for retirement) in recent years, then it’s important not to panic. Our budgets have taken a pounding as inflation has soared, leaving many needing to make tough financial decisions,” Morrissey writes. “Make a note to revisit your decision every six months, because restarting as soon as possible will help you make up any gaps more quickly,” she advises.

The article offers up some ways you can get your retirement savings going again.

“On an ongoing basis, there are small but important steps you can take to boost your contributions. Increasing them every time you get a new job or pay increase is one way of hiking how much goes in without being too painful,” writes Morrissey.

If your employer offers a retirement program where your contributions are matched by the employer, be sure to participate, as Morrissey notes that “the employer match and can mean a lot more goes into your pension overall without much extra necessarily needing to come from you. If it’s available to you it’s a great way of rebuilding your pension after a difficult time.”

One great thing about the Saskatchewan Pension Plan is that, unlike many employer-sponsored retirement savings programs, you decide how much to contribute – there is no mandatory contribution amount. If you have stopped contributing due to the high cost of living, you can resume contributions as inflation rolls back down. The choice of how often to contribute, and how much, is yours.

Find out how SPP can be your retirement savings partner – the plan has been helping Canadians build retirement security for more than 35 years.

Check out SPP today!

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Canadians “losing sleep” over retirement fears?

Retirement is usually considered to be the reward that follows a long hard slog at the office – the pot of gold at the end of the rainbow of work.

But, writes Pia Araneta for Yahoo! Canada, anxiety about retirement “can have serious impacts on Canadians’ mental and physical health.”

She provides the example of Sandi Allen of Shoal Lake, Man., who “wants to retire… after almost 27 years of working long shifts with increasing demands.” The 57-year-old wants to spend more time with the grandkids and travel with her partner, writes Araneta, but “thanks to the increased cost of living, she feels more anxiety about the thought of retirement than excitement.”

“With hydro rates going up, the cost of fuel, taxes and groceries…I don’t know if we can afford to retire,” Allen states in the article. “I’ve been losing sleep over it.”

The article cites a 2021 study by the Healthcare of Ontario Pension Plan that found that “respondents were more concerned about the affordability of retirement than their own health.”

Even though she has a government pension, Allen says she worries if her pension plus Old Age Security “will be enough,” the article notes. “I wonder if my husband and I will actually be able to retire and live comfortably without worrying. Are we going to be able to enjoy our time,” she asks in the article.

Toronto’s Jannett Ionnides tells Yahoo! Canada that, at 64, she feels unable to retire, a fact she finds “depressing.”

“If I do retire, we would lose our house and have no place to live,” she tells Yahoo Canada. As well, the article notes, “Ioannides has had different professions throughout her life, trying to keep up with payments and `make ends meet.’ Her husband, who is 67, is retired but has since picked up two part-time jobs to help make payments.”

Worrying about money can have some serious health consequences, the article notes.

“According to the Financial Consumer Agency of Canada, if someone is dealing with financial stress, they are four times as likely to suffer from sleep problems, headaches and other illnesses such as high blood pressure and heart disease. Additionally, they are more likely to experience strain in their personal relationships,” the article notes.

Worse, the article adds, those of retirement age who have financial problems tend to keep that fact to themselves, worried they will cause problems for their children and family. “Financial stress at an older age can be isolating because some might not choose to share their situation with others, so they’re not seen as a burden,” the article explains.

The article, citing research from the National Institute on Ageing (NIA), says “retirement affordability” is becoming a real challenge.

“According to a 2023 ‘Aging in Canada Survey’ conducted by the NIA, only about one-third of working Canadians aged 50 and above who intend to retire said they can afford to do so at the desired time. Almost 40 per cent of respondents said they are not in the financial position to do so and 26 per cent said they are unsure of whether they can afford to retire at the time they want.”

The article concludes that the lack of retirement readiness is a growing issue that may “get even worse in years to come.”

The story underlines the importance of retirement savings – when you can no longer work, you will need to fall back on something, and the benefits provided by the Canada Pension Plan, OAS and so on are pretty modest. If you have a retirement savings plan through work, be sure to sign up and contribute to the max. If not, have a look at the Saskatchewan Pension Plan.

Open to all Canadians, SPP is a voluntary defined contribution plan. You decide how much you want to contribute each year – you can chip in any or all of your available registered retirement savings plan room. You can also transfer money in from other non-locked-in RRSPs.

SPP will take the money you provide and invest it in a professionally managed, low-fee pooled investment fund, growing it for your golden years. When it’s time to give up the parking spot at work, SPP provides you with several options for drawing retirement income, include the possibility of a lifetime monthly annuity payment or the flexible Variable Benefit option.

Check out SPP today!

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Women retirees receiving 17 per cent less than men: report

We’ve all known for a while that women tend to outlive men. But a new study from Ontario’s Pay Equity Office reveals that women, on average, receive 17 per cent less income in retirement than men do.

The study was highlighted in a recent story in the Financial Post, which took a deeper dive on the issue of what it calls “the pension gap.”

Having a gap is bad, but the Post informs us that the gap between the retirement income of Canadian men and women has actually worsened over time.

“The gender pension gap was 15 per cent in 1976, but despite women’s increased labour force participation, it widened to 17 per cent in 2021, according to Statistics Canada. The average retirement income for Canadian women in that year was $36,700 and the median was $29,700,” the Post reports.

“Women receive $0.83 to every $1 a man receives in retirement income. That is a 17 per cent gendered pension gap,” Kadie Philp, commissioner and chief administrative officer of the Ontario Pay Equity Commission, states in the Post article. “This stark reality isn’t just a number — it’s a concerning trend contributing to a notable gender disparity among older Canadians, particularly women.”

And even worse, many women are not only making less than men, but are living at or below the poverty line, the newspaper notes.

“According to the report, approximately 200,000 more women than men over the age of 65 were living below Canada’s low-income threshold in 2020. Twenty-one per cent of women who had incomes below the cut-off were above the age of 75 — 51 per cent higher than the portion of their male counterparts of the same age,” the Post article tells us.

So, we may all wonder, what’s going on here – what’s causing this “pension gap?”

The fact that women take time away from employment to bear and raise children is cited as one factor for having lower retirement income, the Post states. Additionally, and perhaps for the same reason, part-time work is higher amongst women than men – 24.4 per cent of women worked part-time in 2021 compared to 13 per cent of men, the article says.

Women also get less income when off on parental leaves than men do, the Post notes.  “A majority of insured mothers in Canada (89.9 per cent) took maternity or parental leave at a reduced income level compared with 11.9 per cent of insured fathers or partners,” the Post reports.

As well, there’s the big factor of pay equity generally. Women typically make 28 per cent less throughout the year (and 11 per cent less per hour) than men. We are left to conclude that if you earn less you are no doubt also saving less for retirement.

Finally, the Post discusses “historical biases,” citing the design of Canada’s public pension system that is “designed for heterosexual couples with a male counterpart.”

The takeaway from all of this seems clear. If you are a woman, you need to focus, and never overlook, the importance of retirement saving. If there’s a pension plan where you work, make sure you are signed up and contributing to the maximum – many plans allow part-time workers to join their retirement program.

If you don’t have a program in place for work, the Saskatchewan Pension Plan may be a key resource for creating your own future retirement income. SPP, after all, was first designed to provide pension benefits to people – such as farm wives – who didn’t have access to a retirement program via employment.

SPP will take the dollars you contribute and grow them via a professionally managed, low-cost, pooled fund. When it’s time to collect, you can choose from options like a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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The trickiest retirement problem – living off a lump sum

When we work, we get paid on some sort of regular basis – we’ve been paid monthly (with an advance on the 15^th), we’ve been paid every two weeks, we’ve been paid twice a month, and we’ve been paid every week.

But in retirement, you might find that instead of regular payments, you are living off a lump sum of money – a chunk that is at its biggest near the beginning of your retirement, and that declines as you get older. What’s tricky is figuring out how much to withdraw each year.

A recent Financial Post article looks at this tricky “drawdown” or “decumulation” phase, where retirement savings are turned into income.

Author Fraser Stark, who is president of the Longevity Pension Fund at Purpose Investments,  notes that a number of “rules” have sprung up about how much you should withdraw each year, such as the “the four per cent rule, the 3.3 per cent rule, (and) the 2.26 per cent rule.” He adds that “whatever your number, these prescribed income level rules of thumb seem to point to lower – and more precise – values.”

The question for retirees to answer, he explains, is “how much can I safely withdraw from my retirement portfolio each year without the risk of running out of money?”

And while no one wants to run out of money, Stark says not taking out enough money each year is also a risk. It means you may not be living as well as you could be, he explains.

“The premise of these rules is that the opposite — not running out — constitutes success. This is where the logic behind these rules begins to fray,” he writes.

“Honing in on the `correct’ value misses the point: the entire premise of holding a basket of assets and drawing from it blindly is a suboptimal approach that often leads to inefficient outcomes for retired investors,” he explains.

The granddaddy of all withdrawal rules, the four per cent rule, was posited by Bill Bengen in 1994, writes Stark. “His analysis determined that an investor who started spending four per cent of their original portfolio value… would have not fully depleted their balanced portfolio over any 30-year period,” he explains.

The idea, Stark continues, is four per cent (on average) is a rate of withdrawal that is less than long-term rates of growth. For example, the Saskatchewan Pension Plan has averaged a rate of return of eight per cent since its inception in the late 1980s.

However, the four per cent rule assumes that the retiree is going to be able to live with a “fixed spending level” throughout his or her retirement. “It is truly set it and forget it, which is not how people behave,” he explains.

As well, he writes, people are now living longer. Mortality tables suggest that a 65-year-old woman today has a “great than 34 per cent chance of living for 35 years,” or until age 100. So you are withdrawing funds for many more years than people did in the past, Stark explains.

What, then, do you do to avoid running out of money – especially if you find yourself blowing out 100 candles on your birthday cake? The answer, says Stark, is an annuity.

“A more effective approach is to annuitize a portion of your assets at retirement, thereby creating a stream of sustainable income and withdrawing from the rest of your portfolio according to your percentage rule of choice,” he writes. You can never run out of money in an annuity, as you’ll receive it for as long as you live, he explains.

He also suggests starting Canada Pension Plan and Old Age Security later – these payments are inflation-protected and also are paid for life.

“Much has changed over those three decades. In the face of rising living costs, greater macro uncertainty and continued innovation in financial product design, an optimal outcome for many investors can be achieved by more thoughtfully constructing an initial portfolio to meet their desired outcomes, and by dynamically responding to market and life conditions as the retirement phase unfolds. We deserve no less,” he concludes.

The option of a lifetime annuity payment is available to members of the SPP. When it’s time to collect your pension, you can choose to receive some or all of your account balance as an annuity, meaning you’ll get a monthly payment for the rest of your life. If you want more flexibility around the amount you want to receive, take a look at SPP’s Variable Benefit.

SPP’s varied retirement options, coupled with its professionally managed, low-cost investment strategy, make it a reliable partner for your retirement saving and income plans.

Check out SPP today!

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South of the border, one in four Americans don’t plan to ever retire

Lacking any retirement savings, a new poll finds that one in four Americans say they “expect to never retire,” reports the Associated Press via MSN.

The survey was carried out by the AARP, and also concluded that 70 per cent of those surveyed – U.S. adults aged 50 and older – “are concerned about prices rising faster than their income,” the AP reports.

“About one in four have no retirement savings, “ the article continues, adding that the AARP research “shows how a graying America is worrying more and more about how to make ends meet even as economists and policymakers say the U.S. economy has all but achieved a soft landing after two years of record inflation.”

Those responding to the survey cited “everyday expenses and housing costs, including rent and mortgage payments,” as the biggest reasons why “people are unable to save for retirement,” the story notes.

Credit card debt was also cited as a barrier to saving, the report adds.

“The AARP’s study, based on interviews completed with more than 8,000 people in coordination with the NORC Center for Public Affairs Research, finds that one-third of older adults with credit card debt carry a balance of more than $10,000 and 12 per cent have a balance of $20,000 or more. Additionally, 37 per cent are worried about meeting basic living costs such as food and housing,” notes the AP story.

“Far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” states Indira Venkateswaran, AARP’s senior vice president of research, in the AP article. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire,” she tells the AP.

The article notes that the number of folks choosing to “never retire” has risen over the past three years of surveys, from 23 per cent in January of 2022 and from 24 per cent in July of that same year.

“We are seeing an expansion of older workers staying in the workforce,” states David John, senior strategic policy advisor at the AARP Public Policy Institute, in the AP article. He tells the AP that older workers “don’t have sufficient retirement savings. It’s a problem and is likely to continue as we go forward.”

The article says there are other factors at play for older Americans, such as concerns about the long-term financial health of the U.S. Social Security system and rising costs of Medicare.

It’s definitely an eye-opener to see how many folks plan to keep working indefinitely. We know of a few fellow seniors who are taking this approach as well, and plan to work beyond age 65 and into their 70s.

The article talks about a lack of access to workplace savings programs. This is one of the reasons why the Saskatchewan Pension Plan was founded in the 1980s – to provide people who don’t have a retirement program through work to be able to set up their own, through SPP. SPP does all the hard work for you – your contributions are invested in a pooled, professionally managed and low-cost fund. At retirement, you can choose such options as income for life via an SPP annuity, or the more flexible Variable Benefit. If you don’t have a savings program through work, SPP may be the answer for you!

Check out SPP today!

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Why tax planning is a different game once you’re retired

Tax planning is something that’s pretty easy to handle when you’re working – especially if you have just one employer making deductions from your pay.

But once you’ve retired, The Globe and Mail reports, it’s a whole new ball game.

“For many working Canadians, filing taxes is relatively straightforward: You get a T4 slip from your employer, maybe make a deduction for contributing to your registered retirement savings plan (RRSP), and perhaps claim the odd credit, depending on the current tax rules,” the Globe article begins.

“However, your tax picture can get more complex in retirement, given the new and varied income sources. These often include workplace pensions, RRSPs, registered retirement income funds (RRIFs), locked-in retirement income funds (LRIFs), Canada Pension Plan (CPP) and Old Age Security (OAS) benefits, non-registered investment accounts, and maybe some extra cash from part-time or occasional work,” the article continues.

So, instead of your money coming from one source, you may be getting a stream of income from a variety of sources, the article notes.

“The more buckets you have, the more flexible you are in controlling your income levels … The key is figuring out which buckets to take money from and when,” Brianne Gardner, financial advisor and co-founder of Velocity Investment Partners at Raymond James Ltd. in Vancouver, tells the Globe.

She says Canadians “need to be more strategic in the decumulation stage of life to minimize their taxes not just from year to year but for the longer term, while also factoring in tax changes,” and to pay attention to tax policy changes, such as the recent federal government change to the capital gains inclusion rate.

You should start thinking about it five years ahead of actually retiring, she states in the article.

Owen Winkelmolen of PlanEasy.ca in London, Ont., sees three different stages for retirement tax planning – pre-65, 65 to 70, and 72 and older, the article notes.

In the pre-65 phase, retirees are usually receiving workplace pensions, money from RRSPs, or money from non-registered accounts, the Globe notes.

If you are drawing down money from registered and non-registered sources, there are different tax consequences. Registered money is taxed at a higher rate, but having less of it when you start getting Old Age Security (OAS) may give you a bigger OAS payment, the article explains. There’s also a pension income tax credit you may qualify for.

As well, many Canadians start getting CPP at age 60.

In the 65-70 phase, you start getting the federal age amount tax credit and can benefit from income splitting, the article notes.

It’s also possible to delay your CPP until you are older, to the maximum of age 70. The same is true of OAS, and if you start either later, you get a significantly larger monthly amount, the article explains.

Once you are 72 there is less wiggle room, the article notes.

“Not only are they already receiving CPP and OAS benefits, but the mandatory RRIF withdrawals increase each year. It can be a problem for retirees with large RRIFs who haven’t pre-planned withdrawals before this phase,” the article warns.

“Some retirees can get stuck with a lot of taxable income, a lot of tax owing and sometimes even OAS clawback if these accounts are quite sizable,” Winkelmolen tells the Globe. “You can get to the point at which you have a lot of income that you have little control over.”

In our opinion, if you haven’t called up a financial adviser or accountant in your working life, retirement might be a good time to turn to their expertise to help navigate this, especially the early phases of retirement.

If you’re a member of the Saskatchewan Pension Plan, or are considering becoming one, a great feature to be aware of is the plan’s portability. Since you can join as an individual, a change in jobs doesn’t impact your SPP membership – you can continue contributing as you move from one workplace to another.

Check out SPP today!

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Traditional retirement “an outdated concept,” younger Canadians say

Working away until age 65, getting the gold watch and the retirement party, and then travelling and having fun – a Boomer view of life after work – is seen as an “outdated concept” by younger people, reports The Daily Hive.

“A Leger survey commissioned by Canadian investment service Wealthsimple found that nearly three-quarters (74 per cent) of Canadians between the ages of 25 and 44 feel the conventional approach to retirement — to stop working at 65 years old to then enjoy travelling, leisure and time with family and friends — is an outdated concept,” the publication reports.

Instead, The Daily Hive reports, younger Canadians surveyed revealed “an ambition among millennials and Gen Z Canadians for `a modern form of retirement’ that lets them pursue personal and professional passions throughout their adult lives.”

Say that again?

“Essentially, the path to retirement is no longer linear, but a mix of work, travel, volunteering and entrepreneurial pursuits,” the publication explains.

“It’s a new perspective on the future driven by younger generations. They are looking for flexibility, personalization and control over their future, rather than feeling controlled by conventional wisdom,” states Wealthsimple CEO Mike Katchen in the article.

The other interesting thing in this new “non-linear” approach is that it calls for early retirement, too.

“The survey also found that early retirement (before the age of 55) has emerged as the go-to plan among 25 to 44-year-olds so they can start their own business, work at not-for-profits, or pursue a passion project — basically, not live to work for someone else,” The Daily Hive article notes.

While factors like “soaring inflation” and the high cost of home ownership are cited as obstacles in the article, more than half of those surveyed plan “self-directed investment options to support their long-term financial goals.”

And, the article concludes, more than half of the 1,500 younger Canadians surveyed “feel that investing has given them more flexibility and choice.”

It’s not surprising to see the traditional path to retirement being questioned by the younger folks. As Boomers, we watched our parents work away at long-term jobs with good pensions, all the while paying down the mortgage on their more affordable homes, and then retiring at 65.

Not as easy for those of us of Boomer age to retire debt and mortgage-free – so you see more Boomers hanging onto their jobs longer, hoping to make the math work for living on less. Many choose part-time or contract work in retirement.

If the survey results hold true, the younger folks plan to save and invest at a greater rate than their parents, and then move out of traditional work earlier – sounds like a good plan to us!

If you’ve got money squirrelled away in a bunch of different registered retirement savings plans (RRSPs), the Saskatchewan Pension Plan may offer you a way to consolidate your nest egg. With SPP, you can transfer in any RRSP amount from other accounts. Once your funds are in SPP, which is a provincially run, not-for-profit retirement program, they will be professionally managed at a low fee, and your choices at retirement will include a lifetime monthly annuity payment or the flexible Variable Benefit.

Check out SPP today!

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Why are Canadians retiring later?

A recent article in Kamloops Now reports that Canadians are retiring later and later.

As recently as 2000, the article notes, Canadians – on average – retired at age 60. “By 2020, that had crept up to 63.25,” Kamloops Now notes.

Why the change in retirement timing?

“Retirement is tricky,” the article begins.

“Not only do you have to have enough money to not work, but you have to decide if retirement is actually for you,” it continues. “Maybe, if you don’t have a job, you’ll be bored, unfulfilled and aimless,” the article adds.

The figures cited by Kamloops Now come from www.agecalculator.com, “which crunched numbers provided by the Paris-based Organization for Economic Co-operation and Development, the international agency that shapes policies for prosperity, equality and opportunity for all.”

The trend towards later retirement, the article notes, can be seen in a number of countries. In Bulgaria, the average age for retirement jumped from age 56 in 2000 to 63 in 2020, the publication reports.

“Thirty-eight of the 51 countries included in the study saw average retirement age climb, while in 13 countries, people have been retiring earlier,” the article points out.

The biggest drop for countries where folks are leaving the workforce earlier was in Colombia, where in 2000, the average retirement age was 69.7, Kamloops Now reports. As of 2020, they are retiring on average at age 63.5.

“A scan down the list shows 2020’s youngest average retirement age is in South Africa, where people are calling it quits at 58.2, while the oldest average is in Indonesia where you have to stick it out to 68.95,” the publication notes.

A release from agecalculator.com is cited in the article, and provides a bit more insight on the “whys” of this later retirement trend in most industrialized countries.

“Some of these include the extension of people’s life expectancy, which has increased thanks to medical advancements, economic pressures that translate into people not being able to retire comfortably because of the rising cost of living, and shifting demographics, such as declining birthrates and aging populations,” the release states.

Kamloops Now provides some additional thoughts on what’s behind later retirement.

“Remember the Freedom 55 campaign by London Life Insurance Company launched in 1984 that ran for 25 years encouraging people to plan and save for early retirement? To many that’s an unattainable goal,” the article notes.

“Plus, people started to realize if they were to live for 30 years after retirement, they could very well run out of cash. The cost of living, led by soaring house prices, is high and many haven’t saved enough to retire early,” Kamloops Now continues.

“Even if you do have enough money, you should enter retirement cautiously at any age,” the article concludes, noting “people need purpose and if you suddenly stop working you might be bored or start to feel pointless. After all, there’s only so much travel, golf and pickleball that you can do.”

It’s a very valid point that the author makes, here. There’s the money side of retirement – do you have enough to cover the bills you’ll face when you stop working – as well as the lifestyle side. Do you have a plan for what to do with all that extra time?

If you’re saving for retirement, perhaps on your own or through a workplace plan, you’re covering off the money side nicely. If not – or if you want to save even more for retirement – take a look at the Saskatchewan Pension Plan. SPP is ideally suited for individuals or groups. Contributions are invested in a low-cost, professionally managed pooled fund. When it’s time to hang up the ID badge and log out for the last time, SPP offers you options such as a lifetime monthly annuity payment, or our flexible Variable Benefit.

Check out SPP today!

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The best time to start saving is now – Millard

Even if you’ve reached age 40 and beyond, it’s never too late to start saving for retirement.

So writes Brett Millard in Kelowna’s Castanet.

“For those in their 40s, traditionally called `over the hill’ and who haven’t yet begun saving for retirement, the thought of catching up can feel daunting. Especially in the face of record-high costs of living and other financial challenges,” he writes.

But, he writes, there’s no need to worry. “While the task may seem formidable, it’s never too late to start saving for retirement. With careful planning, discipline and a proactive approach, Canadians in their 40s can take meaningful steps to secure their financial future,” he explains.

First, he writes, you need to fully understand your financial position.

“Gather information about your income, expenses, assets, and debts to get a clear understanding of where you stand. Evaluate your spending habits and identify areas where you can cut back to free up funds for retirement savings,” he advises.

Next, it’s time to set “clear and achievable goals.” You need, he writes, to “determine how much you need to save for retirement based on your desired lifestyle, retirement age, and expected expenses. Break down your goals into manageable milestones and track your progress regularly to stay on target.”

The third step is to focus on your debt, which is a barrier to saving.

“High-interest debt can be a significant obstacle to saving for retirement. Prioritize debt repayment to reduce interest expenses and free up funds for retirement savings. Focus on paying off high-interest debt first, such as credit card balances and personal loans, before tackling lower-interest debt such as mortgages or student loans,” Millard explains.

With debt managed, goals set, and finances clear, you can next try to “maximize contributions to retirement accounts.” Millard advises us to “take advantage of employer-matched retirement accounts first,” then look at registered retirement savings plans and TFSAs.

The sooner you start, the more you will take advantage of compounding, he explains.

“By investing your savings wisely and allowing them to grow over time, you can harness the exponential growth potential of compound interest to accelerate your retirement savings. Start investing early and regularly to make the most of compounding returns,” he says.

His last bits of advice are to consider seeking professional financial help, to be flexible with your savings strategy through the ups and downs of reality, and to “stay motivated and consistent,” and to stay focused on the long-term.

This is all great advice that we wish we had followed better in the past! We can add one additional “welts” of experience, such as avoiding investing in trendy things you don’t really understand, or tapping into your retirement nest egg for other non-retirement purposes.

Do you have little bits of retirement benefit from different jobs sitting in different accounts? If these amounts aren’t locked in, you may be able to consolidate them within the Saskatchewan Pension Plan. There’s no limit on how much you can transfer into SPP from an unlocked RRSP, and through SPP you’ll have the retirement options of a lifetime monthly annuity payment or the flexible Variable Benefit option.

Check out SPP today!

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Government pensions are too low, say protesting Prince George Seniors

What’s life like if you are living solely on government retirement benefits, such as the Canada Pension Plan (CPP), Old Age Security (OAS) and the Guaranteed Income Supplement (GIS)?

According to Monica Murphy, 77, it means having to “line up at the food bank every week and shopping at thrift stores,” the Prince George Citizen reports.

“Last week there were 80 people in the food-bank line up and – there are wonderful people at the food bank – but with my health issues it’s a bit of a hardship to wait so long,” Murphy tells the Citizen. “A lot of people who are on a fixed income are struggling to make ends meet and I’m one of them.”

Use of food banks by B.C. seniors has jumped 78 per cent in the past five years, the Citizen reports.

Murphy joined a number of other seniors at the Seniors’ Tip Cup protest held in mid-March, the newspaper reports.

“Murphy joined a small but mighty – and peaceful – group that gathered with signs that said ‘seniors deserve respect’, ‘end senior poverty’, ‘we are tired of being poor,’” the Citizen article notes. “Murphy’s sign said ‘pensions are too low,’” the newspaper adds.

“The small Prince George contingent led by organizer Ken Aitchison joined the call to government for pension reform so that low-income seniors can reach Canada’s poverty line of about $25,000 a year. Most live on about $17,000 a year,” the Citizen reports.

“So many seniors are on fixed incomes, living below the poverty line, they can’t make ends meet and a light needs to be shone on that,” Natalie Mcquary, peaceful protester, tells the Citizen. “I know people who, after retirement, feel they have to go back to work to survive. These people have raised families and worked all their lives and to be struggling in their golden years isn’t right.”

Save with SPP interviewed Carole Fawcett, one of the founders of the Tin Cup movement, recently, you can see the story here.

The group has launched a website as well.

The benefits offered by the federal government to retirees are pretty modest, as the article points out. That’s likely because these programs were introduced at a time when most working Canadians also had a pension plan at work. That’s no longer as likely.

If there’s a takeaway, it is this. If you are fortunate enough to have any sort of retirement program where you work, be sure to take part and contribute at the maximum level. If you are saving on your own for retirement, a great partner is the Saskatchewan Pension Plan. The heavy lifting of investing your money and growing it can rest on SPP’s shoulders, your job is simply to contribute money to your savings pot. When you retire, your options include having a lifetime annuity that pays you every month, or SPP’s Variable Benefit, which provides flexibility on your payouts.

Check out SPP today!