Spending less – the key to freeing up money to save

We’ve all been there – once the groceries are put away, the car is gassed up, the rent’s paid and the credit cards fed, there’s often very little left for the piggy bank.

Save with SPP decided to scour the Interweb for some ideas on how to address the chief cause of not saving – spending. What do people think we can do to spend less, and ideally, leave more for longer-term saving?

Let’s kick things off with the Be More With Less blog, who offer up a couple of dozen ideas on the topic.

Consider, the blog begins, “going car-free or car lite.”

Even if you have no car loan, keeping a vehicle on the road is not cheap, the blog contends. “Our car cost roughly $300 per month. Expenses like insurance, gas, depreciation, and parking fees add up fast,” the blog notes. So, the authors suggest, walk, take the bus, carpool, or even go down to one car from two.

Another idea suggested by the blog is a shopping ban. Say what?

“Try a month of no online shopping, or no Amazon shopping. These small changes will make a big difference,” the blog suggests.

Another one we’ve tried recently – join your local library.

“Before I joined the library, I spent roughly $150 on books each month. Joining the library has saved me a lot of money and has provided me with quality entertainment! I still buy books; just less often. Also, I like donating used books and money to my local library,” the blog notes.

Finly Wealth has some additional ideas.

Build a budget, the blog suggests.

“To effectively cut back on unnecessary expenses, you need to build a budget,” the blog begins. “Jot down which portion of your monthly income covers necessities like rent, bills, groceries, and gas, then see what’s leftover. These leftovers can be converted into savings or investments.”

There’s even a formula for this, the blog adds:

• “Designate 50 per cent of your income to needs (rent/mortgage, bills, groceries)
• Use 30 per cent of your income to cover wants (dining out, new jeans, home decor)
• Then, the last 20 per cent of your income should be contributed to your savings”

Once you have freed up money, via budgeting, for savings, make those savings automatic so you aren’t tempted to spend the money before it even gets to your savings account, the blog suggests.

“If you’re a procrastinator (which, let’s face it, many of us are), then you can help yourself out by setting up automatic transfers from your chequing account to your savings account once or twice a month – or as often as you get paid,” the blog recommends.

A final tip – use cash instead of credit.

“The physical transaction of cash and the feeling of emptying your wallet is enough to keep you budget-conscious. When you shop with cash, not only do you have a physical and strict budget to stick to, but you’re also watching your balance shrink in real time,” the blog advises.

“It’s a completely different story when you use a credit card, not only can you spend more money than you actually have, but it’s also much easier to get `tap-happy’ and continuously tap, swipe, or insert your card without noticing much consequence,” the blog concludes.

The Spergel website provides a few more ideas.

“Embrace meal planning,” the site suggests. “Food is one of the largest household expenses in Canada.” The site suggests you can save by:

• “Planning weekly meals around grocery store sales.
• Buying in bulk for non-perishable items.
• Cooking at home instead of eating out.”

Buy things second hand, rather than brand-new, by going to thrift stores, yard sales, and online via sites like Kijiji, the site continues.

Review any subscriptions you have and cut the ones you aren’t using, the site concludes.

“Streaming services, gym memberships, and magazine subscriptions can add up. Cancel those you don’t use regularly and explore free alternatives,” the blog notes.

The money you “find” from keeping a closer eye on your spending can find a great home in your long-term savings. If you’re saving on your own for retirement, the Saskatchewan Pension Plan is a great resource.

You provide the savings – any amount up to your annual registered retirement savings plan limit – and SPP will invest them in our professionally managed, low-cost, diversified pooled funds.

You can automate your contributions (PAC-PCC-application.pdf) from your chequing account or credit card or can set SPP as a “bill” via online banking. It might be the only bill that pays you back one day.

Once work is done, you can contact SPP to collect your savings as retirement income. Options include a lifetime monthly annuity payment or the flexible income via our Variable Benefit.

Check out SPP today!

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How people think about their golden years – famous sayings about getting old

When our late father turned 80, we asked him how he felt about getting old.

“Well,” he said, “it sure beats the alternative.”

Save with SPP decided to take a look around at what other people are saying about something we all eventually have to face – growing older.

The Grandmawise website offers up a number of great thoughts on the topic.

Let’s start with the late, great British musician David Bowie.

“Aging is an extraordinary process where you become the person you always should have been,” he once said.

Another musician – John Lennon of the Beatles – once stated “count your age by friends, not years. Count your life by smiles, not tears.”

Albert Einstein also had something to say about the prospect of getting older.

“Do not grow old, no matter how long you live. Never cease to stand like curious children before the great mystery into which we were born.”

Readers’ Digest offers up a collection of positive views about ageing.

“The best tunes are played on the oldest fiddles,” the author Ralph Waldo Emerson once observed.

Keith Richards of the Rolling Stones once remarked “Getting old is a fascinating thing. The older you get, the older you want to get.”

“We are always the same age inside,” said the writer Gertrude Stein.

The folks at Parade provide us with some additional insights.

 “I think that laughter and smiling are one of the best antidotes to ageing that you could possibly have,” said the actress Demi Moore.

Former U.S. President Theodore Roosevelt once quipped “Old age is like everything else. To make a success of it, you’ve got to start young.”

The actress Cameron Diaz sees ageing as a gift.

“I feel very grateful that I get to turn another year older because not everybody does. Not everybody gets to grow old,” she suggested.

Let’s close with a few from the Deliberate Directions website.

Advice columnist Ann Landers once observed “At age 20, we worry about what others think of us. At age 40, we don’t care what they think of us. At age 60, we discover they haven’t been thinking of us at all.”

Playwright George Bernard Shaw stressed the importance of humour.

“You don’t stop laughing when you grow old, you grow old when you stop laughing,” he once said.

Last word goes to the great actress Sophia Loren.

“There is a fountain of youth: it is your mind, your talents, the creativity you bring to your life and the lives of people you love. When you learn to tap this source, you will truly have defeated age,” she once said.

A long life is what we all hope to have. Our friends in New Brunswick recently entered their 30^th year of retirement – so you may experience a very long time enjoying life after work.

If you lack a workplace retirement program and are saving (or not saving) on your own for retirement, consider signing up for the Saskatchewan Pension Plan.

SPP is an ideal retirement savings partner. You provide the savings dollars, SPP invests them in their professionally managed, low-cost, diversified pooled funds.

Any Canadian with registered retirement savings plan (RRSP) room can join; you can contribute any amount you choose up to your RRSP limit. If you have other funds in an unlocked RRSP you can transfer those into SPP as well to consolidate your nest egg.

When it’s time to leave work behind, your SPP retirement income options include the secure choice of a lifetime monthly annuity payment, or the flexible choice of our Variable Benefit.

Check out SPP today!

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Is there money hidden amongst the old junk in your basement?

Many of us – certainly this writer – have the bad habit of hanging on to things way too long. We think either that we might need them again one day, or that perhaps they will – again, in some imaginary future – be worth something.

In a lot of cases, your old junk is just that. Junk. But sometimes, things we hang on to can indeed be worth a few loonies and toonies.

According to the Finance Buzz blog, old tech can be worth real coin.

An original Atari game console from the 80s, the blog suggests, can go for as much as $1,649 U.S., depending on condition. A new Cabbage Patch Kids doll, if unopened and still in its original box, could fetch around two grand in American money, the blog adds.

And even the cassettes we used to play in our cars can be worth money – again, if it is in mint, unopened shape. “A 1982 factory-sealed cassette from The Police (Synchronicity) could set a serious buyer back almost $200,” the blog adds.

It almost feels like you should buy two of each thing you want. You would then keep one to use, play with, and enjoy, and an unopened twin to put away as an investment. Interesting.

The Mearto blog lists a few more items that have shot up in value – perhaps while sitting in your basement.

Vintage magazines, the site says, can be worth money. “Fashion magazines from bygone eras are in demand from collectors who like to see how trends have been recycled and repurposed over time. You may be able to sell a single magazine, originally purchased for $1 or less, for a significant profit, particularly if there is a well-known celebrity on the cover, or if it is a special, hard-to-find issue,” the blog suggests.

Maybe you have some old posters or ticket stubs from long-ago sporting events, the blog continues.

“We estimated the value of a set of three ticket stubs for the 1984 Olympic Gold Medal basketball game at over $75,000 (USD) because the American team was led to victory by Michael Jordan, coached by Bobby Knight and consisted of several other big-name players. Stubs that are in good condition and posters from historic sporting events hold a lot of appeal for collectors of sports memorabilia,” the blog explains.

Another friend of ours was able to get several thousand Canadian dollars for old stamp and coin collections he inherited – he got a dealer to put them up for auction.

The Moneywise blog picks up on this theme, urging us all to check our change jars for older coins.

There was a time when dimes and quarters were made of silver – you can hear it when you drop the coins on a counter and they ring. Also, the coin counting machines won’t take these old beauties.

“Given their age, these coins won’t be the ones lying around on counters or lining pockets,” the blog notes. “They might be stored in boxes in basements, attics, sheds and makeshift storage spots that date the age of these coins. But it’s a worthwhile quest. As of April 7, 2026, silver is sitting at $71.60 per ounce (in U.S. dollars),” the blog notes.

The Cut the Clutter website picks up on the theme of going through your old possessions and selling off anything you don’t need that could be of value.

“That mess piling up in your garage or closets might actually be worth something. Selling what you don’t use anymore is not just about creating space—it’s about discovering value in the things you’ve overlooked,” the blog notes.

Ways to move the items, the site suggests, include estate sales (if you are cleaning out things from a late relative, perhaps), yard sales, or online selling.

“Start by taking good-quality photos of the things you want to sell and posting them on platforms like local marketplaces or apps. Be honest in your descriptions, highlighting any flaws as well as unique features. Transparency builds trust with buyers and ensures smoother transactions,” the blog advises.

So, before you give away or throw away old clutter, check online to see if it might be worth something.

The “free” money you get from your clutter might find a new home in your long-term retirement savings piggy bank.

The Saskatchewan Pension Plan allows you to make one-time contributions in many ways, including via online banking when SPP is set up as a bill. SPP is a voluntary defined contribution pension plan that’s open to any Canadian with registered retirement savings plan room.

No matter how your savings dollars come to SPP, we will invest them in our low-cost, professionally managed and diversified pooled funds. At retirement, you can choose from such income options as a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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How debt can handcuff your savings efforts

Canadians are buying an awful lot of stuff on credit these days – so paying down credit-related bills often leaves little to no room for much else, obviously including long-term savings.

Writing for Money.ca, Christy Bieber observes that “Canadian households now owe a record $1.80 in credit market debt for every dollar of after-tax income they earn, a ratio that has climbed for six straight quarters, according to Statistics Canada.”

Equifax Canada, she continues, notes that the average Canadian “is carrying a record $22,278 in non-mortgage debt.”

“Both trends point to the same underlying pressure: before groceries, rent or savings even enter the picture, more of Canadians’ paycheques are already spoken for,” she writes.

Her article asks the question – should we focus all our efforts on getting the debt paid down first, and then save later? Or is a blended approach a better idea?

While one would normally think of directing all available cash at the debt, Bieber continues, “there is a risk in funnelling every spare dollar toward debt and neglecting an emergency fund — a single surprise expense can restart the cycle, sending someone back to a credit card. That’s why it’s financially prudent to set some cash aside before going all in on payoff, as it creates an essential buffer.”

She cites U.S. financial author Dave Ramsey’s idea of “Baby Steps,” where you first set aside $1,000 for emergencies before getting aggressive on debt.

“The idea holds up well for the average Canadian. Setting aside even a small buffer in a Tax-Free Savings Account (TFSA), where withdrawals don’t create a permanent loss of contribution room, gives Canadians breathing room without derailing a debt-payoff plan,” she writes. And, she continues, if you can put a little bit into a retirement savings program to build up a nest egg – especially if there is an employer match – that’s a wise step.

The article outlines some other steps you can take to attack debt – after you first direct at least some money to savings:

• You could switch to a credit card that offers lower interest rate, which reduces your minimum monthly payment
• You could consider taking a loan to pay off your debt, as the loan interest rate is usually lower than the credit card interest rate
• Would a personal line of credit lower your interest rate versus a credit card?

An article produced by Global News suggests the rising cost of living may be a key reason why Canadians’ debt levels are so high.

Citing research from Equifax Canada, the broadcaster reports that “40 per cent of all respondents said they were spending more than a year ago, while just 18 per cent said they were spending less. Forty-two per cent of those spending more identified as being younger than 55, while 36 per cent were 55 or older.”

As well, the article continues, higher prices are causing a sort of “lifestyle shrinkflation” for Canadians.

An MNP survey found that “three in five Canadians (61 per cent) said at least half of their income is already committed to bills, debt payments and regular expenses before it arrives, while around one-third (32 per cent) said most of their paycheque is already committed before it arrives.”

That’s why so many are almost forced to use credit to make purchases, the article adds.

“A large portion of respondents to the Equifax survey say they are also using their savings, credit cards or other lines of credit to cover everyday expenses, with many piling up debt as they go,” Global News reports. “Nearly a quarter (23 per cent) say they are using savings to pay for day-to-day needs, while 20 per cent say they relied on credit more than last year. Thirteen per cent said they were borrowing money elsewhere to cover basic living expenses,” the article adds.

It’s a scary trend – having more debt than savings – that can create difficulty when you’re retired and living on a smaller income, notes Barron’s.

Research from Schroder’s, the article notes, found that “22 per cent of respondents who are 70 or older said their credit card debt exceeds their savings; 28 per cent of respondents between the ages of 60 and 69 said the same.”

Even if you can save a small percentage of your take-home pay, the compounding effect over time can make those loonies pile up.

The Saskatchewan Pension Plan is a voluntary defined contribution pension plan open to any Canadian with available registered retirement savings plan room. You can start small and ramp up later when things improve.

You decide what to contribute – it can be any amount up to your annual RRSP limit. You can also transfer in any amounts from other RRSPs you may have to consolidate your savings nest egg.

SPP takes your hard-saved dollars and invests them in our professionally managed, low-fee, diversified pooled funds. At retirement, your options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

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How is the “Buy Canadian” movement going?

Nothing we can remember – perhaps other than Expo 67 – has united Canadians more than the U.S. president’s talk of making us the 51^st state, and the slapping of tariffs on a variety of Canadian-produced goods.

Save with SPP wondered how well the “buy Canadian” and travel elsewhere thing is going, more than a year after the problems first began.

Writing for The Financial Post, Pamela Heaven reports that a recent Bank of Canada study shows that the whole boycott thing is having an impact.

“Central bank researchers tapped three sets of data that confirm Canadians have indeed been shifting away from their neighbours to the south by increasing their spending on domestic travel and Canadian grocery products and reducing their spending on similar U.S. products and services,” she writes.

Fewer of us are going Stateside, her article continues.

“Canadians took almost 10 million or 25 per cent fewer trips to the United States last year. The biggest drop was in trips across the border by land which fell by 8.4 million or 30 per cent. Trips by air were down 1.2 million or 12 per cent,” she notes.

Instead, her report notes, many are travelling within Canada, or to other, non-U.S. destinations.

Another tactic employed here in light of the U.S. trade and annexation talk/measures was a decision by Canadian provinces to remove U.S.-produced alcohol from shelves.

Ariel Rabinovitch, reporting for Global News, notes that this ban resulted “in Canadian imports of U.S. alcoholic beverages decreas(ing) by approximately 81 per cent (from approximately US$718 million to approximately $137 million).”

While a couple of provinces have since put U.S. alcohol back on the shelves, the efforts so far have cost U.S. booze exporters upwards of a billion dollars in sales, the article adds.

The Americans are getting the message, former PM office official Diamond Isinger tells BNN Bloomberg.

“It’s clearly yielding results,” she tells the broadcaster. “It’s clearly being noticed by the president. It’s something very frustrating for him, and it’s having very real economic effects on American producers,” she adds.

J.R. Duren, writing for The Independent, reports that the Canadian travel boycott of the U.S. has cost America about $3 billion thus far.

“Canadians have a widespread distaste for Trump’s rhetoric and policies toward Canada over the past 19 months, a survey last month from polling firm Pew Research Center revealed,” the article notes.

“Overall, perceptions of the U.S.’s reliability have also plummeted since 2022. `In Canada, 83 per cent described the U.S. as a reliable partner in 2022, compared with 35 per cent today,’ the Pew survey found,” the article continues.

As we write this, negotiations in Washington between Canadian and U.S. trade officials have broken off, and a new wave of tariffs and counter-tariffs are expected. We’ll all be keeping our eyes on what develops.

A made-in-Canada – specifically made-in-Saskatchewan – solution exists for those of us who, perhaps lacking a workplace pension program, are saving on our own for retirement. The Saskatchewan Pension Plan is open to any Canadian with registered retirement savings plan room.

You decide how much you want to save – it can be any amount up to your personal RRSP contribution limit. SPP does the rest, investing your hard-saved dollars in our low-cost, professionally managed pooled funds.

You can also transfer in any amount from other RRSPs you may have to consolidate your nest egg.

At retirement, your income options from SPP 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!

What’s the one best tip for living a longer life?

We used to be told things like “an apple a day keeps the doctor away” by our parents and grandparents. These words were intended to be words to live by – their wise maxims for living a long and healthy life.

Save with SPP decided to freshen up the old adages by searching the Interweb for some fresher healthy living adages.

Let’s start with the Uncommon Quotes website, which offers up a few new thoughts on the subject.

“Nourish your body, and your spirit will thrive,” the site suggests. Not bad.

“Stress less, live more; find joy in the present,” reads another. Also very good advice.

“Healthy living is a marathon, not a sprint,” the site advises. And as well, “listen to your body, it knows what it needs.”

We found a few more good sayings at the Lifehack website.

For starters, the site notes, “it is health that is real wealth, and not pieces of gold and silver.” This quote is attributed to Mahatma Gandhi. A former CEO of a pension plan we once worked at used to paraphrase this one by saying “you can be the richest, wealthiest person in the world, but if you don’t have your health, you ain’t got nothing.”

The site quotes Jack LaLanne as saying “exercise is king, nutrition is queen. Together you have a kingdom.” Nice.

Dr. Kenneth Cooper’s thoughts on the subject are as follows, the site reports – “we do not stop exercising because we grow old; we grow old because we stop exercising.”

The Life Success Journal blog provides a few more pearls of wisdom.

“Your diet is a bank account. Good food choices are good investments,” Bethenny Frankel is quoted as saying. “Just as we save money for future gains, healthy foods nourish our bodies and boost our well-being. By making conscious food decisions, we invest in our health and happiness,” the blog adds.

“The mind is everything,” states none other than Buddha in the blog. “What you think, you become,” the quote adds. “This quote emphasizes the importance of cultivating a positive mindset as we strive for a healthy lifestyle. When we maintain optimism, we allow ourselves to thrive and reach our fullest potential,” the blog explains.

Let’s finish up with three more, this time from the Wisdom Quotes website.

The site tells us an old Irish proverb – “a good laugh and a long sleep are the best cures in the doctor’s book.”

Next, there’s an Arab proverb – “he who has health has hope; and he who has hope has everything.”

Finally, the great chef Julia Child once said “Moderation. Small helpings. Sample a little bit of everything. These are the secrets of happiness and good health,” the blog reports.

We certainly wish everyone a long and healthy life.

One thing that’s particularly important with longevity is making sure you don’t run out of savings in retirement.

The Saskatchewan Pension Plan has you covered in that regard. Among the options available to retiring plan members is a lifetime monthly annuity payment. No matter how long you live, you’ll receive a payment on the first of every month for the rest of your days. And depending on what annuity option you select, there may be benefits available to your survivors.

Check out SPP today!

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Piggy bank strategies – making piggy work harder for you

All of us, even those of single-digit age, understand how a piggy bank works. You fill it up with loose change and the odd bill, and when it’s full – wait, what do people do with it then?

Save with SPP took a look around to see what piggy bank strategies are lurking out there on the Interweb.

Let’s start with ETFFIN blog.

The blog sees piggy banks as an ideal place “to keep your spare change. Dropping loose change from your purse, pocket and car cushions into a piggy bank will keep you from knowing how much money you have accumulated until you open up the piggy and count up the change. You can take the saved change to a bank to deposit it into an account or in exchange for bills. This process allows you to make the most of every cent you earn, which can accumulate into saving of $10 from a piggy bank of pennies, up to at least $50 from a (bank) of quarters.”

The blog recommends that you use a different coloured piggy bank for each type of change and bill. “This saving trick will help you be more organized with your money, and can lead to more saving since you can keep better track of the money you have, as well as how much you want to put away rather than spend,” the blog explains.

The blog recommends that you have a savings purpose for each piggy bank – “such as to book a vacation or buy a new item of clothing.” This, the blog continues, “creates incentive to use a piggy bank more, and therefore, creates more opportunity for saving money.”

A final thought from ETFFIN – a piggy bank can hold bills, and not just change. “Even small bills, such as ($5 and $10 bills), will add up quickly if you put them in a piggy bank. A piggy bank full of… $5 and $10 bills can quickly add up to several hundred dollars. After you have filled the piggy bank, empty it, then take the money to a bank to deposit or to get the amount back in more manageable bills,” the blog advises.

The Monzo website advocates a multi-piggy bank approach, with each bank having a specific savings goal.

“Piggy banking involves setting up multiple piggy banks… and splitting your money between each one. You use the money in each piggy bank for a different purpose – like bills, groceries and new clothes,” the site explains. We are instantly reminded of the multiple jar approach popularized by Canadian financial author Gail Vaz-Oxlade (Feb 8: Control spending and debt, and you’ll free up money to save: Gail Vaz-Oxlade | Save with SPP).

The Monzo site suggests – after setting up a budget – that you establish separate piggy banks for these categories: rent or mortgage, bills, groceries, eating out, new clothes, holidays and “savings, investments and debt repayments.”

The site suggests that you overestimate the amounts you’ll need (to stay on the safe side) and that if you don’t want to use cash in physical piggy banks, you can set up separate online accounts for each “piggy” category. No matter how you approach it, the money in each bank can only be used for spending on its designated category.

The Moneystepper site provides a few additional ideas.

“Never empty your piggy bank haphazardly,” the site warns. “If you do, it’ll quickly simply become a nice tidy way to store your money rather than being a money-saving tool.”

Don’t, the site suggests, set a limit on what goes into the bank – say, nothing bigger than a quarter. “All that does is tell your brain that (anything over a quarter) can be spent,” and not saved, the site notes.

Have the goal of doing something specific with your piggy bank once it is full, the article concludes.

“You should be aiming to empty and place your piggy bank amounts into your real bank account on a scheduled basis (I would recommend every six months at most). If not, you will be losing out on too much compound interest,” the site adds.

We used our piggy bank to save all loose change, any scratch ticket winnings, payouts from our dental and vision insurance, and other unexpected amounts. All money saved was contributed to our Saskatchewan Pension Plan accounts! We even used small gift cards to make contributions.

SPP invests everyone’s savings dollars in a low-cost, professionally managed, pooled fund. You can decide how much you want to contribute, and can also transfer in any amount from registered retirement savings plans (non-locked-in) you may have. When it’s time to retire, your income options include the security of a monthly lifetime annuity payment or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

The Annuity Puzzle – working paper looks at why annuities, an answer to running out of savings, are not more popular

If people fear running out of savings when they retire, you’d think annuities – a way to convert some or all of your savings to a lifetime income stream – would be more popular.

A working paper produced for the National Bureau of Economic Research (NBER), titled The Annuity Puzzle Revisited: Barriers, Behaviour, and Policy Paths to Lifetime Income, takes a look at why the annuity solution is not more top of mind for retirees.

The paper’s authors are Hal E. Hershfield, Suzanne Shu, Jeffrey R. Brown, Abigail Hurwitz, Olivia S. Mitchell, Tamiko Toland and York University’s Moshe Arye Milevsky.

The paper begins by noting that, when considering retirement, “retirement plan design and academic research have focused on wealth accumulation, emphasizing how to encourage employees to begin saving and contribute at rates sufficient to support financial security later in life.”

However, the authors note, “the process by which retirees spend down their wealth has historically received far less attention from academics, policymakers and industry. Wealth decumulation decisions, or how to optimize consumption over an uncertain remaining lifespan, are among the most difficult ones that people face.”

The paper notes that “a life annuity… in which the consumer exchanges an amount of money for guaranteed lifetime income that may start immediately or at a future date” is often overlooked as a decumulation tool.

“A large body of economic literature has concluded that consumers should place a high value on annuities, yet in practice, few individuals voluntarily annuitize, a conundrum known as the `annuity puzzle,’” the authors notes. “There is also a substantial disconnect between the roughly half of consumers who report they would favor buying an annuity to protect against running out of money in retirement and the much smaller share of about 12 per cent that actually do (Arapakis & Wettstein, 2024),” the paper adds.

So why are annuities, which are the primary way to deliver guaranteed lifetime income, the paper continues, less popular than other options?

Many households, the paper suggests, “value retaining liquid assets to leave to heirs.” In many cases, an annuity conversion is “fully or partially irreversible,” meaning you can’t undo your choice, the paper adds. The paper (designed for a U.S. audience) notes that most government retirement benefits already provide “a substantial stream of guaranteed lifetime income.” (The same can be said of Canada Pension Plan and Old Age Security benefits here in Canada.)

The paper goes into detail on other factors that impact people’s willingness to convert savings to annuities, including such things as pricing and their own thoughts on their potential longevity.

There’s a “behavioural impediment,” the paper notes – “people tend to focus on the chance of `losing’ principal when they die, rather than on the insurance value of having lifetime income protection” while they are alive.

Similarly, the paper notes, “retirees who have worked for decades to build a healthy retirement balance are likely to feel strong ownership and endowment over these balances, making the transfer of these funds… in exchange for an annuity highly uncomfortable.”

The paper then explores ways to boost annuity adoption.

“Survey evidence also suggests that many older Americans regret not having purchased annuities, highlighting the consequences of this gap (Hurwitz & Mitchell, 2025a),” the paper notes.

In some jurisdictions – notably Singapore and Israel – retirement systems require “partial” annuitization, the paper notes. At least some of the savings must be used to provide guaranteed income via an annuity, the paper explains.

Another plan design seen in Sweden and Switzerland is to have annuitization as the default choice for decumulation right from the time the member is enrolled, the paper continues. Some systems offer deferred annuities that start when the member reaches an advanced age.

Other systems build in ways “to address concerns about bequest, regret, and loss aversion,” such as offering “refundable income annuities, including cash-refund and installment-refund variants,” to reduce the perception that you have “lost” money by converting to an annuity.

The paper notes that most defined benefit pension plans offer lifetime annuity-style payments, but that the focus for more common defined contribution plans has more usually been on capital accumulation, with less design consideration given to decumulation. In the U.S., the paper notes, more policy and regulatory actions have been recently taken to increase annuity adoption, but progress has been slow.

Clearly, the paper notes, there needs to be more advice given to individuals on the importance of the annuity option, perhaps via more emphasis on financial literacy.

“One set of interventions would involve enhancing financial and longevity literacy, as low levels of financial literacy remain a major impediment to effective retirement planning (Lusardi & Mitchell, 2024),” the paper notes. “This ability is especially important for annuities, given the complexity of the decision process required (Brown et al., 2021). Although evidence on whether general financial literacy increases annuity demand is mixed, annuity-specific knowledge appears to be positively associated with annuity demand (Goedde-Menke et al., 2014; Hurwitz & Mitchell, 2025b),” the paper adds.

Indeed, the paper concludes, the need for better education to help people make informed choices is quite apparent.

“Creating more effective retirement income choice environments will require coordination among employers, insurers, advisors, regulators, and policymakers, even when incentives are imperfectly aligned. No single innovation or regulatory change will reliably deliver the outcomes predicted by idealized economic models. Meaningful progress will instead depend on a combination of education, carefully designed nudges, and continued innovation in products and choice architecture,” the paper concludes.

Members of the Saskatchewan Pension Plan have access to a variety of annuity options when it comes time to convert their savings (in total or in part) to income.

According to the SPP Pension Guide (retirement_guide.pdf), members can choose a life-only annuity (income goes to the member for life with no survivor options), a refund life annuity (where any balance remaining of the amount you transferred for your annuity can be paid to your beneficiary), and a joint and last survivor annuity (where a surviving spouse or common law partner receives some or all of your annuity payment for the rest of their life after you pass away).

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Putting your best foot forward – the benefits of walking

We keep seeing it on television, our phones, and over the airwaves – walking is one of the best exercises out there.

What makes it so? Save with SPP decided to prowl around the Interweb to see what people are saying about the health benefits of walking.

According to the Mayo Clinic, “regular brisk walking” can help maintain or manage your weight, “prevent or manage various health conditions” such as “heart disease, stroke, high blood pressure, several cancers and type 2 diabetes,” improve heart health and fitness, and build endurance.

As well, the article continues, walking helps strengthen your bones, boosts your energy level, “improves mood, thinking, memory and sleep,” reduces stress and anxiety and “improves your physical function and, in older adults, lowers fall risk.”

The Clinic suggests that “walking faster and farther” is linked to the best results. “If you are just starting out, slowly work your way up to walking faster and farther. Over time, you may notice you can walk farther in less time. This helps you get aerobic activity, improve heart health, build endurance and burn calories.”

The Prevention website chimes in on the health benefits of a nice brisk stroll, noting that it can help your cognitive function and overall heart health.

“Walking is an easy-to-do exercise that has so many benefits with very little risk of injury or death,” Adam Mills, exercise physiologist and cycling coach at Source Endurance, states in the Prevention article.

The key, the article continues, is to get in at least 30 minutes of walking per day.

And, the article says, all the stuff you read about aiming for 10,000 steps a day may be overdoing it.

“A 2021 study published in JAMA Network Open found that for people ages 38 to 50, 7,000 steps was associated with a lower mortality rate,” Prevention reports. “And a 2025 study published in the British Journal of Sports Medicine found that people who walked a minimum of 4,000 steps daily at least three days a week had a 40 per cent lower risk of dying (prematurely),” the article adds.

Any amount of walking helps and is beneficial, the article concludes.

Last word to the folks at Harvard, who add a few “surprising benefits” we can achieve from regular walking.

A half-hour of walking briskly “counteracts the effects of weight-promoting genes,” the article begins. This, the article says, is a way to counter the risks and effects of obesity.

Interestingly, walking “helps tame a sweet tooth.” Research from the University of Exeter, the article reports, found that even “a 15-minute walk can curb cravings for chocolate and even reduce the amount of chocolate you eat in stressful situations. And the latest research confirms that walking can reduce cravings and intake of a variety of sugary snacks,” the article notes.

Walking regularly reduces your risk of breast cancer, “eases joint pain,” and can boost your immune function, the article reports. “Walking can help protect you during cold and flu season. A study of over 1,000 men and women found that those who walked at least 20 minutes a day, at least 5 days a week, had 43 per cent fewer sick days than those who exercised once a week or less.”

So, the next time you’re thinking of driving to the corner store for milk, consider putting on your running shoes and taking a stroll. You’ll be doing yourself – and your health – a big favour, while at the same time, saving a little on gas.

And a great place to park those savings is the Saskatchewan Pension Plan.

The SPP was created to provide a pension plan for those of us who don’t have one through work – or want to supplement any plan we do have. SPP is open to any Canadian with registered retirement savings plan (RRSP) room – you can contribute any amount you want each year up to your personal RRSP limit.

As well, you can transfer in any amount from other RRSPs you may have, to consolidate your retirement savings nest egg.

Funds deposited in SPP are professionally invested in a low-cost, diversified pooled fund. When it’s time to turn savings into retirement income, your options as an SPP member include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

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Social isolation is a concern for seniors – but there are ways to build new connections

Health researchers across the country are identifying the danger of social isolation for older Canadians.

An article on the Healthing.ca website notes that “in Canada, older adults are facing growing rates of social isolation and loneliness. This can hurt both their physical and mental health. But loneliness and isolation do not have to be an inevitable part of aging.”

The article then presents some concerning statistics.

Quoting research from Angus Reid Canada, the article reports that “almost 25 per cent of people 65 years and older reported they would like to have participated in more social activities in the past year, 19 per cent felt a lack of companionship, while 30 per cent were determined to be at risk of social isolation.”

Incredibly, the article maintains that the risk of earlier death for isolated seniors “is similar to smoking 15 cigarettes a day. There is also higher risk of diseases such as stroke and heart disease as well as anxiety, depression and dementia,” the article notes, quoting statistics from the United States Surgeon General Advisory from 2023.

The Compassion Senior Care website expands on the risks that social isolation can bring.

“Social isolation can be a hidden threat for seniors. Retirement, loss of loved ones, or mobility limitations can all contribute to feelings of loneliness,” the article begins.

Isolation can lead to “a cascade of negative effects,” the article continues, including cognitive decline, a weakened immune system, an increased risk of depression and anxiety and reduced physical activity.

However, the article concludes, there are many easy ways that seniors can rebuild stronger social connections, which “provide a sense of belonging, purpose, and a vital support system. Sharing laughter, engaging in conversations, and feeling part of a community provide a sense of security and belonging that enriches their lives.”

Alright – what are some of the things seniors can do to get re-connected?

An article on the Second Wind Movement blog starts us off with a few ideas.

Retirement, the blog notes, provides you with the ability to “take the time to date your spouse again.” Set time aside for date nights, the blog continues, and “try to enjoy new retirement activities together.”

Another idea is to find a walking buddy.

“Did you know that walking for 30 minutes a day can improve your mood and even help prevent chronic diseases? Walking is also an easy form of exercise that anyone can do, no matter their physical condition,” the article suggests.

Another tip is to “be a regular.” Huh?

“On your quests to make friends, become a friendly regular face at different places. Go to the same store, gym, bars, and restaurants. Introduce yourself to staff members and become the regular they all know and like. If it seems like someone is also frequenting these establishments then take this as an opportunity for interaction,” the blog notes.

Another idea is group travel, the blog continues.

“If you’re an older adult looking to improve your social life in retirement, explore the world on a retirement budget, or just want something fun and different to do in retirement — then group travel is for you. Join the growing number of seniors who are discovering that group travel is a great way to improve and maintain your social life,” the blog adds.

Let’s get some more good suggestions from the Lifeline blog.

Start small by getting to know your neighbours better, the blog begins.

Another good idea is to volunteer, the blog adds. “Roles at local food banks, museums, or libraries are great places to meet like-minded people,” the blog notes.

Pick up a new activity and join a group that is into it, the blog continues. “Arts and crafts, book clubs, gardening circles, and faith-based study groups can all spark connection,” the article suggests.

You can also take classes. “From tai chi to French lessons, senior-specific programs create social opportunities built around learning and fun,” the blog enthuses.

We can attest that joining a group and learning a new activity is a great way to make friends. We’ve been on a number of trips with new friends we met via line dancing. Retirement gives you the time you never had while working to do new things.

Retirement income, of course, is an important part of the puzzle. If you’ve got a retirement program through work, be sure you are signed up and contributing.

If not, the Saskatchewan Pension Plan stands ready to partner up with you. You provide the savings dollars – any amount up to your annual registered retirement savings plan (RRSP) limit – and we’ll do the heavy lifting on the investment side. SPP contributions are invested in a low-cost, professionally managed pooled fund with a successful track record of steady returns.

When it’s time to collect your money, options include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

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