Experts warn: don’t bank on the value of your house to fund your retirement

If you are banking on the value of your house being a way to fund retirement, be careful, warns Brett Surbey, writing for Money Canada.

He begins by saying that home ownership is a legitimate sign of “financial success for many Canadians.” And, he adds, “across many prosperous nations, Canada included, owning your own home is a sign of wealth accumulation and a concrete marker of financial security.”

The rising value of homes, he continues, may be translating to a rise in individual net worth in Canada. “According to Statistics Canada’s Financial Security Survey, the net worth of individuals aged 55 to 64 between 1999 and 2023 nearly doubled on average — it increased by 91 per cent. And most of that wealth is locked in a home with plans for retirement, experts Colin Busby and John Stapleton noted in a Globe and Mail opinion piece,” he writes.

Next, Surbey points to recent research from the Healthcare of Ontario Pension Plan (HOOPP) that found “that 62 per cent of respondents viewed their home as a `key part of their retirement plan.’ And 44 per cent of those surveyed said they were relying on the sale of their home to fund their golden years.”

But this `key part of their retirement plan’ comes with a few ifs and buts, Surbey notes.

“Unlike funds in a registered retirement savings plan (RRSP) or a pension plan, selling a home comes with additional title, legal and realtor fees alongside other costs that can erode your equity. Additionally, moving is a major point of disruption — you’ll need to make new friends, find a new doctor and fit into a new community,” he writes, citing Busby and Stapleton’s Globe article.

Another concern is that given the rising costs of housing, finding someone from a younger generation to buy your home may prove more difficult than in the past, Surbey reports.

“A study from the Fraser Institute reviewing housing affordability over the years found that the typical home in every major Canadian city was out of reach for families making the local median income. Meanwhile, the latest homeownership data on millennials in Canada from StatCan reveals that this demographic was twice as likely to be living with their parents compared to baby boomers at the same age in 1991,” he writes.

“If younger Canadians can’t afford homes, future demand could weaken, making it harder for today’s soon-to-be-retirees to cash out at the prices they’re expecting and accomplish their retirement goals,” he points out.

OK – if selling your home to fund retirement is a no-go, what about borrowing against it? Let’s read on.

“From another angle, it may be tempting to access home equity with a home equity line of credit (HELOC) or reverse mortgage rather than selling. However, experts have pointed out that this avenue comes with its own share of risks. For example, reverse mortgages often come with higher interest rates and there can be limited offerings to make use of,” he tells us.

For those thinking of leveraging their homes to fund retirement, Surbey concludes by suggesting they consider other funding avenues – registered retirement savings plans (RRSPs), Tax-Free Savings Accounts, employer pensions, and government retirement benefits.

Whatever route you take, he adds, have a plan mapped out, start small, make your money work for you via investments (and not just simple interest), and be sure to take advantage of any retirement program you can sign up for, especially if it includes employer matching of contributions.

The Saskatchewan Pension Plan has been helping Canadians save for retirement for over 35 years. Any Canadian with available RRSP room can take part, and you can contribute any amount up to your annual RRSP limit. If you have other non-locked-in RRSPs, you can transfer them into SPP to consolidate your nest egg.

SPP then invests your contributions in our low-cost, professionally managed, diversified pooled fund. At retirement, 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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CAAT survey suggests gap between expected retirement funding and “what actually happens when you get there”

Writing in The Globe and Mail, Meera Raman makes a very astute comment about retirement – those who haven’t yet experienced it have no idea what it will be like.

“There are some life experiences you simply can’t fully understand until you’re living them. Your first full-time job, getting married, becoming a parent. Retirement seems to belong on that list, too,” she writes.

That level of “non-understanding” appears to extend to how we all think we are going to pay for retirement, she continues.

“A new survey from CAAT Pension Plan suggests there’s a significant gap between how Canadians expect to fund retirement and what actually happens once they get there. Among working Canadians, 25 per cent expect personal savings to be their primary source of retirement income. Among retirees, however, only 15 per cent say that’s actually the case,” Raman reports.

In fact, she continues, the CAAT research suggests that retirees “rely more heavily on government benefits than they anticipated.” The CAAT survey found “that 58 per cent of retirees primarily depend on public programs such as the Canada Pension Plan and Old Age Security,” she adds.

This doesn’t mean, Raman adds, that retirement planning doesn’t matter.

“Rather, it’s a reminder that retirement planning isn’t about perfectly predicting the future. It’s about preparing for a range of possibilities. We spend decades estimating what we’ll need, what we’ll spend and where our income will come from. Then retirement arrives and reality inevitably looks different,” she explains.

It’s important, she concludes in the planning-related segment of her article, to be flexible when planning.

“Flexibility may be one of the most underrated retirement skills. No matter how carefully you plan, some things only become clear once you’re actually experiencing them,” she notes.

There’s another takeaway from the CAAT findings that may seem a bit alarming – that 58 per cent of retirees “primarily depend on public programs such as CPP and OAS.”

Those programs are great, of course, but another thing many of us don’t know until we actually receive CPP and OAS is that the benefits are quite modest.

According to the federal government’s website, the maximum CPP benefit payable at 65 in January of this year was $1,507.65 – and that’s a gross, pre-tax amount. And not everyone works long enough, and makes consistently more than the national average wage, to qualify for the maximum amount. The same site notes that the average CPP payment this past January was $877.01 per month.

As for OAS, the maximum for those 75 and older is $827.17; for those age 65 to 74 the maximum is $751.97.

Even if you got the most possible CPP and OAS you would be looking at $2,300 a month and change before taxes. So the fact that more than half of retirees say they rely primarily on these benefits is worrisome.

The need for additional income, from either workplace retirement programs, personal savings, or both, appears clear. If you are already contributing to a workplace pension program, be sure you are participating to the max.

If not, the Saskatchewan Pension Plan may be the retirement income solution you have been looking for.

Open to any Canadian with available registered retirement savings plan room, SPP is a voluntary defined contribution pension plan. You decide how much you want to contribute each year – any amount up to your RRSP limit – and you can also transfer in any amount from other RRSPs you may have to consolidate your nest egg.

SPP then invests your hard-saved retirement dollars in our professionally managed, low-cost, diversified pooled fund. When it’s time to retire, SPP can provide you with options like a lifetime monthly annuity payment or the more flexible Variable Benefit. The additional income that SPP can provide, over and above government benefits, may provide your future self with a little more breathing room in retirement.

Check out SPP today!

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Who wants to retire as a millionaire?

We all probably dream about having a cool million in the bank when we retire, writes Vishesh Raisinghani for Money.ca. But, he notes, fewer than 10 per cent of us ever reach that target.

His article offers up a few tips and how you can raise your game at retirement savings.

He begins by noting that, according to BMO’s Annual Retirement Survey, “the average Canadian believes they need $1.7 million to retire comfortably – up from $1.54 million the year before…. yet more than one in three (36 per cent) say they’re unlikely to ever reach that target.”

“Three quarters of Canadians (75 per cent) aged 55 to 64 have $100,000 or less saved for retirement, according to Benefits Canada data,” he adds. “Put another way, nearly nine out of 10 people approaching retirement age aren’t in the seven-figure club,” Raisinghani reports.

His first advice is to set a realistic goal.

“You can’t reach a destination if you don’t know where your starting point is. The first step toward a million-dollar retirement is benchmarking your savings against what other Canadians your age actually have,” he notes. In other words, you can’t catch up if you don’t know that you’re behind.

He suggests using the savings median as your target, by age bracket. The average rate of savings is usually higher because it is skewed by high-income earners. Here, reports Raisinghani, are average savings and median savings by age bracket:

• Under 35: average $41,000 / median $12,500
• 35 to 44: average $82,100 / median $30,000
• 45 to 54: average $150,300 / median $70,000
• 55 to 64: average $216,900 / median $100,000
• 65 and over: average $224,000 / median $100,000

Don’t forget that government benefits like the Canada Pension Plan and Old Age Security can supplement your savings, he adds.

Next, he recommends that we boost our savings rates.

“If your retirement target is well above the national or median average, your savings rate probably needs to be significantly higher as well,” he writes.

Currently, the Canadian savings rate is a fairly modest 4.4 per cent, he reports. “That means for every $20 in disposable income, most Canadians are saving less than $1. Saving just six per cent of your income could put you ahead. Hit 10 per cent or more and you’re in a select group of super-savers,” he notes.

His final tip is to “invest for growth.”

“Savings are the foundation. But to turn a solid nest egg into a million-dollar one, your money also needs to work hard. The power of compound growth is real — but only if you have the time and the right investments to let it run,” he writes.

“Passive investing through low-cost index funds has become one of the most popular and accessible strategies for Canadians. Exchange-traded funds (ETFs) now make up nearly a quarter of Canada’s investment fund market, up from less than 10 per cent a decade ago, according to Morningstar. Canadian equity ETFs tracking major indices have produced strong historical annualized returns,” he writes.

Another tip would be to take your CPP and OAS late, for income that is 42 per cent and 36 per cent higher than taking it at 65, respectively, he reports. “For those who can afford to wait, this strategy provides a powerful, inflation-indexed income stream for life,” he notes.

Raisinghani concludes with several other general savings tips, including the idea of “automating” your savings (so that savings dollars are auto-transferred to your savings account before you have a chance to spend them) and knowing the tax rules for retirement savings accounts when deciding where to withdraw money as income.

The Saskatchewan Pension Plan invests members’ savings in a low-cost, diversified, professionally managed pooled fund that has boasted excellent rates of return over its 35-year history. As well, SPP members have the option of “automating” their savings (PAC-PCC-application.pdf) via setting up pre-authorized contributions from a bank account or credit card.

Check out SPP today!

Avoid an “early retirement nightmare” with these steps: Dale Jackson

Writing for BNN Bloomberg, Dale Jackson reports that early retirement can either be a dream, or a nightmare.

He offers up, in his insightful article, some ideas designed to help shift your early retirement towards “dream” and away from “nightmare.”

He begins by noting that while Canadians are generally working longer, “it’s an ironic twist that nearly half are involuntarily forced into retirement due to job loss, health issues or the need to care for someone else.”

When the unexpected happens, he continues, the help of a financial advisor is often of great assistance. “Even if your advisor only manages a portion of your big financial picture, they probably have other clients in the same situation and could present options you never considered,” he remarks.

With an advisor’s help or on your own it is essential to have a handle on what your day-to-day expenses are, Jackson writes. If your retirement income falls short of covering those expenses, “the growing trend toward part-time work, or the establishment of a small business can possibly supplement those expenses,” he points out.

Managing debt in retirement can also be a challenge, the article notes.

“If you have debt, talk to your bank about consolidating high interest debt (such as credit card balances) into one manageable low-interest loan payment plan. For most Canadian homeowners a home equity line of credit (HELOC) provides the lowest rates because the property is secured as collateral. Reverse mortgages are also an option for homeowners but normally charge much higher interest rates,” he writes.

If you have a pension plan through work, know your options. Defined benefit plans can often be deferred and collected at a future date. With defined contribution plans, you usually can keep your savings invested via your employer’s administration (to collect later) or can transfer it to another registered retirement savings plan (RRSP). In either case, find out what your options are, Jackson stresses.

It’s also important to fully understand the tax consequences of withdrawing money from RRSPs. “Income splitting with a spouse is a great strategy but is limited for Canadians under 65 years. In any case, it is best to withdraw from your RRSP at the lowest possible marginal tax rate and top up any additional funds required through a Tax-Free Savings Account (TFSA),” Jackson reports.

He also advises those of us going through an earlier-than-planned retirement to not “panic, and sell potentially lucrative or income-generating investments, or become too conservative.”

That’s because “you still need your savings to grow in equities during retirement and resorting exclusively to fixed income probably won’t get you to your goals. You will, however, need to keep a portion of your portfolio in cash, or near cash, to meet short-term living expenses,” he explains.

Finally, an earlier than expected retirement party may mean you want to draw your Canada Pension Plan (CPP) at age 60, the earliest date you can access it, Jackson writes. Old Age Security starts – at the earliest – at age 65.

Dealing with multiple small RRSPs in retirement can be a hassle, particularly when you are converting RRSP savings into income via a registered retirement income fund (RRIF) or an annuity. Members of the Saskatchewan Pension Plan can choose to transfer any amount from RRSPs they may have into SPP to consolidate your retirement nest egg.

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Study suggests guaranteed income “can actually help you live longer”

Could having guaranteed income for life actually make us live longer?

A recent working paper from the National Bureau of Economic Research in the U.S., reported on by Liliana Hall for Money.com, suggests there is indeed a link.

The paper, her article notes, “finds that folks who choose annuities are about three per cent less likely to die over the next decade than those managing withdrawals on their own. It’s a small difference, but it could say a lot about how financial security shapes our overall well-being.”

The study, the article continues, covered 600,000 retirees in Chile, where the retirement system “forces most workers to choose how to turn their savings into income.”

“Over five years, annuity users had about 2.5 per cent lower mortality; over 10 years, that gap widened to roughly 3.6 per cent,” the article reports.

Chile was used in the study because unlike other countries it relies “primarily on a defined contribution (DC) pension system. Most workers build retirement savings in individual accounts managed by private pension funds rather than through a traditional government pension,” the article continues.

When Chileans reach retirement age, the article explains, their choices for turning their savings into income boil down to selecting either a guaranteed lifetime annuity or opting “for market-based withdrawals.” There are some hybrid options (including both annuities and market withdrawals) available, the article adds.

The system’s design has made annuities a very popular choice for Chileans, the article tells us.

“That structure has helped create one of the more active annuity markets in the world. More than 60 per cent of Chilean retirees choose annuities, compared with less than five per cent of U.S. retirees, according to the Center for Retirement Research at Boston College,” the article notes.

The “market-based withdrawals” alternative to annuities is “a government-run withdrawal system that pays out savings in installments,” the article explains.

OK – so how does the link to longer life work? Let’s read on.

The article suggests that those choosing annuities face less stress.

“Retirees who rely on market-based withdrawals may face more uncertainty about how long their savings will last, especially during downturns. Annuities, by contrast, provide a steady paycheque. That stability may reduce anxiety and the mental strain tied to financial uncertainty,” the article notes.

The other reason researchers found was that having guaranteed income makes one “more likely to invest in their health,” the article notes. Annuitants were found to be more apt to be “keeping up with routine checkups, preventive care and other ongoing medical needs.”

There’s a sense of security that comes with a lifetime annuity, the article notes.

“Many people fear running out of money more than they fear death,” Angie Welsh, founder and president of My Annuity Agents, tells Money.com. “The financial stress that comes with the unknown has real negative impacts on both physical and mental well-being.”

Those withdrawing money from an actively invested account can end up “living and dying with every market spike and dip,” she tells the publication. Their sense of security fluctuates just as much as the market does, the article adds.

And not knowing how much your income will be (at least, exactly) can lead to behaviour changes, she tells Money.com.

“Without a steady income stream, some retirees become hesitant to spend money on essentials that support their quality of life — like healthcare, nutrition and social activities — because they’re trying to avoid outliving their savings,” she states in the article.

Members of the Saskatchewan Pension Plan have the option to convert some or all of their savings into a lifetime annuity when the time comes to turn savings into income.

While you are contributing to SPP, your savings dollars are invested in our professionally managed, low-cost, diversified pooled fund. You decide how much to contribute, and you can transfer in any amount from registered retirement savings plans (non-locked-in) you may have.

At retirement, you can elect to convert some or all of your savings to a lifetime annuity. Depending on the annuity type you select (the Pension Guide retirement_guide.pdf provides full details) there can also be benefits paid to a surviving spouse or beneficiary.

Check out SPP today!

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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!