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.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

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.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

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!

Join the Wealthcare Revolution – follow SPP on Facebook!

What steps can you take to avoid running out of money in retirement?

It’s something you think about in the years leading up to retirement – and a concern that sharpens once you are actually retired. Will you run out of savings once you are retired?

Writing for Money.ca Romana King cites research from the 2025 CPP Investments Retirement Survey that found “that 59 per cent of Canadians are afraid of running out of money in retirement.”

While that’s an improvement over the same survey’s 2024 results – where 61 per cent feared running out of money – “the underlying pressures haven’t eased,” King writes. “What’s worse is that for many Canadians, the retirement numbers most aim for keep moving further out of reach.”

King writes that last year, “the average Canadian believed they’d need $1.7 million saved for retirement, according to a 2025 BMO retirement poll.” That’s a jump from the $1.3 million Canadians figured they’d need in 2019, she notes.

The rising retirement savings target indicates a growing level of concern about the rising costs of retirement, King continues.

“These numbers aren’t just anxiety — they reflect a real shift in how Canadians understand what retirement actually costs. At the same time, more than three-quarters of Canadians (76 per cent) say they’re worried they won’t have enough money in retirement due to rising prices, and 63 per cent say inflation has already limited their ability to save,” she points out.

Okay – we worry about running out of money in retirement, and we think we know how much we need to save. But are we actually doing any saving? Let’s read on.

“The most striking figure may come from the Healthcare of Ontario Pension Plan’s (HOOPP) 2025 Canadian Retirement Survey, where 59 per cent of unretired Canadians confessed that they don’t believe they’ll ever be able to retire given their current financial situation. What’s worse is that half of these respondents didn’t set aside any money for retirement in the past year,” King reports.

So what can be done about this? King offers up some ideas.

First, she recommends, start saving – and if you can, start early. “The sooner you begin saving for retirement, the more time you have to build a substantial nest egg. Even if you can only contribute small amounts, at first, remember that consistency matters,” King notes.

Diversification is another smart step to take, she continues.

Government benefits provide “a solid foundation,” but work best “when it’s part of a broader income strategy. Consider layering in additional savings vehicles such as registered retirement savings plans (RRSPs), Tax Free Savings Accounts (TFSAs) and employer pension plans. This mix of income sources gives you more flexibility and more resilience when you retire,” she advises.

Third, have a good idea of what you’ll need to live on in retirement in advance of actually arriving there. “Start by estimating your future expenses. Think about your lifestyle, potential healthcare costs and any big plans you might have for your retirement years, such as travel or hobbies. This will help you set a clear savings target that aligns with your long-term goals,” she notes.

Finally, consider getting some professional savings advice. “A financial adviser can help you assess your savings, recommend investment strategies and build a plan tailored to your needs,” she concludes.

If there isn’t a workplace retirement program available to you, the Saskatchewan Pension Plan is a flexible, reliable and steady retirement savings partner.

With SPP, you decide how much to contribute each year. So you can start small and ramp up savings as your earnings grow. The money you contribute to your SPP account is professionally invested in a large, low-cost pooled fund. When it’s time to retire you will have created another valuable income stream for your future self – one that can come in the form of a lifetime monthly annuity payment, or the more flexible Variable Benefit, among other options.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Is retirement morphing into “rewirement?”

The traditional view of retirement – the gold watch at the end of a long career with one company, followed by travel, golf, and other leisure activities – may be changing, writes Alexandra Horwood for the Financial Post.

“For decades, retirement was seen as a reward for years of hard work. But for many Canadians today, the idea of stopping work at 65 is becoming less common,” she writes.

In fact, she continues, many of us are continuing to work beyond traditional retirement age.

“The share of Canadians aged 65 and older participating in the workforce has nearly doubled over the past few decades, reaching roughly 15 per cent in 2023, according to Statistics Canada’s Labour Force Survey. The trend reflects a clear shift in how Canadians are approaching retirement,” she explains.

So, her article continues, life in retirement may not be so much about separating oneself completely from work, but “how to step away from work without undermining your finances, health or sense of self,” she writes.

Why this change in our view of retirement? Horwood says that in the past, most people sailed into retirement debt-free, enjoying income for life from workplace pensions.

“That script,” she warns, “has become far less predictable.”

“Inflation has reshaped household budgets, and more Canadians are entering retirement with mortgages or other forms of debt. Some have never completed a financial plan for retirement and simply don’t know whether their savings are enough to step away with confidence,” Horwood notes.

Another complication, she notes, is helping out the kids.

“Housing affordability and education costs are prompting many parents to remain in the workforce longer to help adult children with down payments, private school tuition or child care for grandchildren,” she points out.

As well, her article tells us, there are people who – despite having sufficient savings – just don’t feel ready to say goodbye to working.

“For others, the decision to keep working has little to do with money. Work can offer structure, routine and social connection. For professionals whose identities have long been tied to their careers, stepping away can feel disorienting. In that sense, retirement is not only a financial shift, but a change in identity and lifestyle,” Horwood explains.

And here is a key takeaway from her article – maybe there doesn’t have to be a “hard stop” to working.

“If retirement is no longer tied to a fixed age, it also shouldn’t have to be a hard stop. Stepping away from full-time work is often better approached as a gradual transition. Instead of retirement, think of it as `rewirement,’” she writes.

“Rewirement,” she explains, might look like “scaling back responsibilities over time. That might mean consulting, contract work, board service or volunteer roles.”

The extra income can serve, she continues, as a “playcheque” to increase your income in your mid-60s and beyond, helping to pay for “travel, dining out, or discretionary spending.”

However, she warns, continuing to work after retirement can carry some hidden costs.

When you factor in income from the Canada Pension Plan, Old Age Security, and any registered savings you may have, the extra money you earn later in life can bump you into a higher tax bracket, Horwood notes.

You need, in advance of deciding to keep on working, to have a plan that “accounts for taxes, government benefits and required withdrawals. Without planning, additional income can dilute the very advantage it was meant to provide. These are decisions best considered years before retirement begins, not improvised once it is underway,” she tells us.

Retirement, she concludes, “is no longer a finish line… the goal is not to stop working at the `right’ age, but rather to build a life that continues to function, financially and personally, as work begins to change shape.”

Whether you decide to work into your 70s and beyond or not, you’ll still need retirement income. If you have a workplace retirement program of any kind, be sure to sign up and contribute as much as you can.

If you don’t have such a plan – either for yourself, or for the employees of your business – a great solution is the Saskatchewan Pension Plan. SPP is open to either individuals or employers (Pensions Plans for Businesses | Employee Pension Plans).

In either case, contributions made to SPP are professionally invested in our low-cost, pooled fund. That money is grown via prudent investment over time. When it is time to collect your savings as income, your options include the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

The sooner you start saving for retirement, the better: Motley Fool

Writing for The Motley Fool, Kailey Hagen notes that the earlier you start your retirement savings efforts, “the more investment earnings you’ll have to rely upon.”

How much you save, she explains, “is an understandably important piece of the puzzle – but not the whole story.”

“When you begin saving for retirement has a huge impact on whether you’ll reach your savings goal on schedule,” she writes. “While many don’t begin saving for retirement until their 30s or later, the earlier you start, the easier it will be to save what you need for retirement. Your earliest savings are often your most valuable because they’re invested the longest. That can yield a significant amount of investment earnings to supplement your personal contributions,” she continues.

Her article contains a table showing how much money would accrue for someone who saved $200 monthly with an average annual return rate of eight per cent.

If someone started putting away $200 a month at age 60, they’d have $14,080 by age 65, the story explains.

Someone doing the same thing but starting at 50 would save $65,165 by the same age, the article adds.

At age 40, the same rate and frequency of savings would result in a total of $175,454 at 65; starting at age 30 you would have $413,560, the article notes.

But the keener who started at 20 would have a whopping $927,613 by their 65^th birthday, Hagen reports.

“The example illustrates the importance of saving for retirement as early as possible,” she continues. “Sometimes, people feel that they’re better off waiting until they’re earning more and can afford to make larger contributions. But this could backfire. The longer you wait to begin saving, the more personal contributions you’ll need to make to reach your goals,” she adds.

“Make regular contributions as soon as you’re able to, even if they’re small. Contributing $25 or $50 every pay period might not seem like much, but it can really add up over time. Then, as your income increases, you can boost your retirement contributions to help you reach your savings target more quickly,” Hagen advises.

Many financial commentators feel that automating your contributions – having money directly transferred, perhaps on pay day, to your savings account – is a “set it and forget it” way of building savings. The argument is that the money is in your retirement piggy bank before you have a chance to spend it.

The Saskatchewan Pension Plan is automation-friendly. SPP allows pre-authorized contributions to be made from your bank account or credit card (PAC-PCC-application.pdf).

Once SPP receives your contributions they are invested in our professionally managed, low-cost pooled fund, where they will grow until it’s time for you to collect them as income. When that happens, your income options will include a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

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!

Join the Wealthcare Revolution – follow SPP on Facebook!

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!

Join the Wealthcare Revolution – follow SPP on Facebook!

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!

Join the Wealthcare Revolution – follow SPP on Facebook!

“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!