There’s lots to think about – and to pay for – when considering the cost of dying

When we talk about saving for retirement, we tend to talk about things like covering our expenses after we’ve stopped working – housing costs, food, transportation, travel, maybe healthcare later in life.

But there’s another expense – the cost of dying – that’s out there, and while we won’t be around to pay the bill, it should be factored into our planning, experts say.

Writing in The Toronto Star, Andy Takagi notes that “as Canadians struggle with the cost of living, the cost of dying has quietly catapulted, becoming increasingly unaffordable for low-income Canadians.”

“The average cost of a burial in Canada can range from $5,000 to $10,000, according to Sun Life, and even cheaper alternatives like cremation can still average between $2,000 and $5,000,” he writes. In Toronto, one of the most expensive cities in the country, the cost of a single burial plot with an upright marker at the Mount Pleasant Cemetery runs “between $27,760,50 and $34,825.”

Why are costs going up?

According to Jeff Weafer of the Funeral Services Association of Canada, “staff costs, facility costs, and the costs of goods needed for ceremonies have increased, just like everything else, with inflation,” the Star reports.

He and his association would like to see the federal benefit – which has been set at a flat rate of $2,500 since 2019 – increased. Prior to 1998 the death benefit was higher, around $3,580, the article notes.

The CBC says the rising cost of burials has prompted many to opt for cremation rather than traditional full-body burial.

“Over the past two decades, cremation has become the norm in Canada,” the broadcaster reports.

“According to the Cremation Association of North America, which uses data from provincial vital statistics departments, the cremation rate in Canada has risen from 48 per cent in 2000 to 72 per cent in 2018. And the association expects the rate will keep increasing over the next few years,” the CBC adds.

As an example, at St. Michael’s Cemetery in Edmonton, Alta., an area for cremation plots was opened in the 1980s. While rarely used in those days, today they are in high demand, the CBC notes.

The broadcaster reports that a cremation costs between $2,000 and $5,000, significantly lower than a burial, which was going for $5,000 to $10,000 at the time the article was written in 2020.

At the LowestRates blog, the authors suggest that the cost of dying needs to be talked about in the here and now.

“The topic is taboo to most, but talking about it is important. If we don’t, how will we prepare for a loved one’s passing? Or our own? Because we should prepare when possible. We should know what arrangements have to be made and what those arrangements will cost. Better to deal with funeral expenses and the decisions that come with death sooner rather than later, right,” asks the blog.

As with any purchase, the blog continues, there are lots of costs to consider and lots of options. It’s not unlike buying a car, the blog adds. Things to factor in include getting a death certificate, transfer services, a shroud, casket or urn, body preparation, formal ceremony costs, burial plots or niches, and the cost of burial or cremation services.

And of course, who pays?

“Either you, your insurance company, or those who survive you, like your spouse/partner, children, or parents, will be responsible for covering your funeral expenses in Canada,” the blog explains.

“If you plan with a life insurance policy, the death benefit paid out by your insurance provider can help cover your funeral and after-death costs. Just pay your premium now, and you can spare your family the stress of handling those funeral bills later,” the blog continues.

The other option, the blog adds, is to “plan and pay for your after-death arrangements in advance of your death. So, right now.”

Unfortunately, this writer is at the age when many family members have been passing away. Some pre-paid, others paid via their estates. In all cases, the funeral home was very supportive. We can also add that there is a raft of other things you need to do when a family member passes, including cancelling their Canada Pension Plan/Old Age Security payments, their provincial health card, applying for a death certificate, and more. The folks at the home guided us through that complex maze; an accountant and our lawyer helped us with the intricacies of being an executor for an estate.

So for sure, the experts are right – you need to have this unwelcome conversation at some point while you can.

The Saskatchewan Pension Plan is open to all Canadians who have registered retirement savings plan (RRSP) room. You can make contributions up to your limit, and can also transfer in cash from other RRSPs in any amount. That way your retirement savings can grow in a consolidated, low-cost, professionally run pooled fund. At retirement, you can receive an annuity payment on the first of every month for as long as you live, or look at the more flexible Variable Benefit option.

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How are things working out with the new First Home Savings Accounts?

For decades, the federal Home Buyers Program offered first-time home buyers a way to fund their down payment – money could be taken out of a registered retirement savings plan to put on the house, with the home buyer given a period of time to repay him or herself.

A more recent program, the First Home Savings Account (FHSA), was launched in recent years by the feds. Let’s have a look at how this program, in which contributions to the plan are tax-deductible but withdrawals are not, works.

Writing in The Globe and Mail, finance columnist Rob Carrick notes that 740,000 people opened a FHSA last year.

“FHSAs are a small-scale but promising example of government policy aimed at helping middle class young people get into the housing market. You can put up to $8,000 in these accounts each year to a maximum of $40,000. Contributions generate a tax refund, and both contributions and investment gains benefit from tax-free compounding and withdrawals. FHSAs are available to people aged 18 and up who did not own a home in the part of the calendar year before an account is opened or the previous four years,” he notes.

While the $40,000 cap, he writes, “is out of synch with the average resale housing price of a bit more than $700,000 in April,” the FHSAs “are nevertheless helping people with middling incomes build down payments for home purchases well into the future.”

Citing federal government statistics, Carrick notes that 44 per cent of FHSA account holders had a taxable income of $53,359 or less. A further 36 per cent of account holders had income in the $53,360 to $106,717 range, he adds.

Launched just last year, the value of all FHSAs topped $2.8 billion, with the average account value listed at $3,900, Carrick writes.

“We are still many years from first-time buyers being able to say their FHSA was a difference-maker in getting into the housing market, but we’re off to a decent start. In 2023, a little over 34,000 FHSA holders made a withdrawal from their accounts More importantly, FHSAs are catching on with exactly the people who will need all the help they can get to buy homes,” concludes Carrick.

An article in Advisor.ca took a look at why some people made withdrawals soon after opening the accounts.

Jacqueline Power of Mackenzie Investments tells Advisor that “it doesn’t surprise me in the least” that some FHSA account holders would “choose to make qualifying withdrawals soon after opening and contributing to the plan.”

“We’re all looking for [tax] deductions these days, any way that we can get one,” Power states in the Advisor article. Qualifying withdrawals from an FHSA allow “an individual to have that deduction and make that tax-free withdrawal.”  

“Launched on April 1 of last year, the FHSA is a registered plan that allows first-time homebuyers to save for a down payment on a tax-free basis. Contributions to an FHSA are tax-deductible, while withdrawals to purchase a first home — including from investment income — are tax-free,” the article notes.

It sounds like a pretty nice program for younger people to consider when saving for a new home.

This author was able to use the Home Buyers Program, where money is transferred out of an RRSP, and then used for the down payment, back in 2008. We are just now repaying the last $1,300 or so, even though the mortgage was paid off in 2021. The one interesting aspect of our use of the HBP was that we chose to “repay” ourselves via contributions to the Saskatchewan Pension Plan! We are now gearing up to start receiving a lifetime annuity from SPP this fall, when we will reach age 65.

It’s another example of how SPP can work for you! Check out Canada’s made-in-Saskatchewan retirement savings solution today!

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Annuities prevent you from outliving your investments: Jonathan Kestle CFP, CLU, H.B.Com

The higher interest rates of the mid-2020s are making people revisit an old retirement planning friend, the annuity.

An annuity is a financial product that you can buy which then pays you a specified amount each month for the rest of your life. While you no longer have control over the money you used to pay for the annuity, your monthly income payments from it are guaranteed to last your lifetime.

Save with SPP reached out to Jonathan Kestle of Ian C. Moyer Insurance Agency to find out more about annuities.

Q. We’ve not seen anyone comment on how choosing an annuity takes away the headache of having to make withdrawals from a registered retirement income fund (RRIF) or similar vehicle (a minimum amount that must come out, taxation, perhaps increased income and further taxation, etc.) Does having an annuity for some or all of one’s retirement income simplify their taxes?

A. An annuity will not necessarily simplify taxes unless it is a “non-registered” annuity, meaning the funds used to purchase the annuity are regular taxable savings and not from registered savings (Registered Retirement Savings Plans (RRSPs), a Locked-In Retirement Account (LIRA), etc.)

What an annuity does simplify, is the task of making a savings account last. Annuities eliminate the risk of outliving your investment and pay a pretty good payout rate in comparison to what would be prudent with a normal investment account.

Q. Similarly, when you choose an annuity you can pick one that can provide a spouse with a pension, or beneficiaries with a lump sum amount. If you have a lump sum, isn’t it possible that you’ll spend it all before you die and leave little or nothing to beneficiaries?

A. Not really, an annuity typically makes it harder to leave funds to beneficiaries. The guarantee periods are often limited to 10 or 15 years, at which point no money will pay to a beneficiary upon the death of the owner.

I would look at it this way… if you aim for a retirement income of $60,000, you could use an annuity to supplement your social benefits (such as CPP and OAS) to reach that amount. This way, you secure a steady income and preserve other investments, which can then be left to your beneficiaries.

Q. Interest rates have been persistently higher – are we seeing more annuities being chosen?

A. Yes. Now is a great time to consider an annuity. I checked today, and payout rates are up about 19% from 2021.

Q. Any other observations on the topic?

A. The payout ratio of an annuity is often overlooked. The “payout ratio” of an annuity is simply the amount of annual income received divided by the lump sum used to purchase the annuity. The concept is that those who unfortunately pass away early have their contributions support those who live longer. This mechanism is known as “mortality credits.”

Mortality credits are a unique feature of annuities. Essentially, the contributions from those who pass away earlier than expected are pooled and used to provide higher payouts to those who live longer. Because of this, annuities can safely sustain a higher withdrawal rate than a traditional investment portfolio. Achieving the same withdrawal rate from a traditional savings account would be too risky for many investors. This system allows annuities to offer more stable and predictable income throughout retirement, providing peace of mind for retirees.

We thank Jonathan Kestle for taking the time to answer our questions. Here’s a link to an earlier interview SPP did with him on annuities.

The Saskatchewan Pension Plan offers its retiring members a variety of annuity options. There’s the Life Only Annuity, which pays you and you alone a monthly income for life. There’s also the Refund Life Annuity, which can provide a lump sum benefit for your beneficiaries, and the Joint and Last Survivor Annuity, where your surviving spouse can continue to receive annuity payments after your death. Full details can be found here: retirement_guide.pdf.

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For many of us, inflation is an unwelcome guest from a long time ago who has made a sudden reappearance. For the younger among us, it’s a weird new thing.

How do we cope with a reality that has prices for things like groceries soaring? Save with SPP took a look around for some top tips on slaying the beast of inflation.

The folks at Ratehub.ca describe “two common categories of inflation” as being “cost-push inflation” and “demand-pull” inflation.

Cost-push inflation, the blog reports, “happens when production costs rise (wages, raw materials, transportation, etc.) but demand doesn’t.” The higher cost of producing items inflates their cost, the blog explains.

Demand-pull inflation, Ratehub explains, “is the result of higher consumer demand for certain goods.” Popular items become harder to find, supplies shrink, and companies “start charging more.”

Terrific. But what can we do about it?

Among the tips offered up by Ratehub are:

• Putting off big expenses – if you can, Ratehub suggests, put off costly home renos or big-ticket purchases like new cars.
• Save on groceries – buy in bulk, the blog suggests; take advantage of grocery store points programs, and plan more vegetarian meals given the high price of meat
• Pay off debt – “Brainstorm some ways in which you can free up money… by cutting back, then use the extra cash you saved to begin paying off your debt.”

Global News suggests a few more ideas:

• Spend less on dining out, entertainment – A recent poll, the broadcaster reports, found that 54 per cent of those polled (in 2022) were “dining out less.” As well, Global notes, 46 per cent said they were “cutting back on entertainment spending.”
• “Spring clean” your budget – Myron Genyk of Evermore Capital tells Global News that people should be “taking a look at credit card statements (for) recurring charges that might not be worth the monthly fee, such as a streaming subscription that is not being watched.” Cutting these “passive” charges may be easier than “overhauling one’s lifestyle” to make spending cuts, she tells Global.
• Consider the impact of higher interest rates on savings, expenses – Interest rates, reports Global, haven’t been this high for a generation. For savers, now may be a good time to consider a Guaranteed Investment Certificate (GIC), but the article warns that even GICs may not keep pace with inflation if it continues to increase. For those with mortgages, Genyk suggests they consider a longer amortization period. “While they might end up owing more on their mortgage by extending the life of the loan, it might be worth it to offset the temporary inflationary pressures on their monthly budget,” the article suggests.

Forbes Advisor has some additional thoughts on the subject.

• Speed up debt repayment – With interest rates on debt rising, a bad thing is getting worse, Forbes reports. The article quotes Doug Hoyes of Hoyes Michalos as saying “if you are spending more money on food, rent, and gas for your car, that leaves less money to service your debt.” His first tip for surviving inflation is “to tack consumer debt as quickly as possible to avoid the snowball effect of debt overwhelming your finances.”
• Use cash-back credit cards – Vanessa Bowen of Mint Worthy tells Forbes that using a cash-back credit card “on essential expenses like gas and groceries can be a simple way to put money back in your pocket.”
• Avoid volatile investments – When investing, watch out for companies carrying a lot of debt. Nesbitt Burns’ John Sacke tells Forbes “you want to buy stocks in companies that are likely—and I use that word ‘likely’ very carefully—to perform better than other companies in a rising rate environment.”

The folks at Sun Life Financial finish us off with some classic inflation-beating advice.

• Cook at home – “Cooking at home is cost effective,” especially when compared to the cost of dining out or ordering in, the article advises. Think of the $6 latte you like – on a daily basis, it is costing you $2,190 per year! Much cheaper, the article notes, to make your own coffee at home.
• Buy used, or borrow – “Consider buying second-hand items – you can sometimes find great deals at a fraction of the original price. Books, toys, sports equipment, furniture, clothing and accessories … you can find it all on platforms like Facebook Marketplace and Kijiji,” the article suggests. You may also be able to borrow or rent things like speciality tools for a home improvement job, rather than laying out money to own them, the article suggests.
• Travel during off-peak times – The article suggests being “smart” about travel, and to “take advantage of the off-season. You’ll likely have a cheaper and more relaxed holiday.”

Some of our friends have started doing challenges related to health and weight loss; maybe some of these ideas would make good challenges – going a week, or a month, without dining out or ordering in would save a pile of cash, for example. Creativity is always good when it comes to saving money, we wish you the best of luck in your own challenges.

When you are able to generate some extra savings, don’t forget about the future. If you are saving on your own for retirement, a wonderful and willing partner is out there for you – the Saskatchewan Pension Plan. SPP members have their savings pooled in a low-fee, professionally managed fund. Those savings grow over time, and when it’s time to collect, SPP members have choices, such as a lifetime monthly annuity payment or the flexibility of our Variable Benefit. Check out SPP today!

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Ah, spring. Time to drag the golf clubs back up to the garage, to pump up the bike tires, and start getting the garden going. And, for many of us, time to get a nice tax refund cheque (or, more likely, a refund deposit).

Save with SPP wondered what people do with the refunds. Let’s take a look around and find out!

According to Fiona Campbell, writing for Forbes Advisor, tax refunds “are a sweet perk of filing your income tax return – and the good news is that most Canadians get one.” In fact, she notes, 58 per cent of filers got a refund in 2021, and the refund averaged just over $2,000.

This year, the average refund is more like $2,100 and change, she continues.

Campbell’s ideas on how to spend the refund don’t include “concert tickets, vacations, or designer clothes,” but are intended to “put you ahead financially in the long run and give you peace of mind instead.”

First (no surprise) is paying down debt. “If you carry a credit card balance, or only make the minimum payments, you’ll end up paying interest each month—and with APRs averaging 21 per cent, that can add up quickly,” she warns. The average Canadian owes more than $4,000 in credit card debt, she adds. If you don’t have credit card debt, you may have other loans or credit lines that can use a hand, she continues.

Next comes the mortgage. Campbell suggests making a prepayment on your mortgage, either as a lump sum or as an extra amount each payment. “If you don’t have other outstanding debt with higher interest rates, prepaying your mortgage can be a smart way to use your tax refund as it goes directly to the principal portion of your loan,” she notes.

Other ideas from Forbes Advisor include topping up your registered retirement savings plan (RRSP) or Tax Free Savings Account (TFSA), starting or adding to your emergency fund, or saving for a child’s education via a registered education savings plan (RESP).

The folks at the Nerd Wallet blog have a few more ideas.

“A tax return can be a great way to fund home repairs and upgrades. Maybe you have a big project to tackle, such as redoing a bathroom or renovating your kitchen. Spending your money on home upgrades is an investment that could shrink your home insurance bill and add value to your property in a way that pays off handsomely when it comes time to sell,” the blog advises.

Another idea, the blog continues, is to “invest in yourself.”

“While tackling debt, saving for the future and improving your home are all worthwhile uses for your tax-season windfall, don’t forget that you are also a smart investment. Maybe you’d like to start a side hustle, treat yourself to a monthly massage, or complete a professional certification. Though they might not earn compound interest, these types of investments can yield a sense of wellbeing and set you up for future success in a way that’s truly priceless,” the blog suggests.

Global News covers many of the same ideas, concluding that it really boils down to either paying down debt or adding to savings (or both).

The broadcaster suggests targeting credit card debt first.

“Credit card debt, which typically carries high interest rates at upwards of 20 per cent, can be particularly damaging to Canadians’ finances and “snowball” out of control, states financial author Sandy Yong in the article.

However, Yong says, even though saving and paying off debt are seen as the most sensible things to do with a refund, having a little fun is never out of the question. There’s no reason, she tells Global, to “feel bad about spending it on something for yourself.”

If you’re planning to use some or all of your tax return on your retirement savings, why not consider the Saskatchewan Pension Plan. SPP works just like an RRSP – the contributions you make are tax-deductible, which may help you get a refund down the road. And, way further down that road, the contributions you make to SPP – having been professionally invested, at a low fee, in a pooled fund – will grow into a future income stream for the retired you. A gift that keeps giving, as they say.

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One of our fellow line dancers told us recently that she and her husband are about to start a 75-day challenge. For that entire month and a half, they will exercise for 90 minutes a day, follow a strict diet (Weight Watchers for her, “clean eating” for him), will drink a gallon of water every day, won’t drink alcohol, and will read at least 10 pages of non-fiction per day.

Wow. We’ll see how they do, but it got us thinking about money challenges – what sorts of things are people challenging themselves about with their money?

The folks at Reader’s Digest have a few money-related challenges to start the ball rolling.

There’s the “one per cent savings challenge,” the magazine reports.

“For this challenge, no drastic lifestyle changes are needed. You’ll simply contact your workplace and increase your retirement contribution by one per cent. Then, set a schedule. Every two to three months (whatever works for you, just stay consistent), increase it by another one per cent,” Reader’s Digest suggests. 

An intriguing one is the “100 envelope challenge,” the magazine continues.

“Want to save more than $5,000 in three months? TikTok’s viral 100-envelope challenge can help you do just that. Grab a box of colourful money-saving envelopes and label them 1 to 100. Each day, you draw an envelope, and whatever number you draw, you add an equal amount of cash inside. For instance, if you draw No. 27 on day one, then you’ll fill the envelope with $27, seal it and place it in a basket or drawer. After 100 days and 100 envelopes, you’ll have saved a total of $5,050,” the article notes.

We’ll Canadianize another tip from Reader’s Digest, since we haven’t had dollar bills for a while. The idea is that every time you get a Loonie in your change, “take it out of your wallet and put it away in a money pouch.” You can, in time, up this by including toonies and $5 bills, the article suggests.

Forbes magazine has a few more on offer.

“Save one dollar a day. That’s it! Do it for the entire year to kickstart your savings fund in a way that feels manageable,” the magazine suggests.

You can boost the savings amount down the road – if you were to save $20 a week, you’d have $1,040 by the end of the year, Forbes continues.

How about the “Roll the Dice” savings challenge? “Take a six-sided die and roll it each day. Worst case scenario: you tuck away $6 a day for a total of just over $2,000 a year. But this is a situation where your “worst” scenario is great news for your savings account,” Forbes notes.

A third gem from Forbes is the “no-spend challenge.”

“A no-spend challenge can take place during a single day, over a month or even longer. While the challenge is on, you can’t spend any money beyond routine bills and any other regular expenses you’ve already planned for (say, gas for your commute or getting a prescription refill from the pharmacy). At the end of the challenge, take the “extra” money you’ve discovered out of your chequing account and move it to a savings account,” the magazine recommends.

The Inspired Budget blog offers up a few more.

The Holiday Helper Challenge, the blog reports, provides “a way to get ahead of the huge expenses of the holidays. Starting January 1, set aside $20 from each week’s budget and put it into savings.”

“You can use this for holiday gift buying, or use it to save up for a vacation or another major expense. By the end of November, you will save an extra $960 on a bi-weekly budget,” the blog notes.

We’ve talked about saving loonies, toonies and even fivers, but if that’s a bit too tough for you right now, how about the 365-Day Nickel Saving Challenge?

“On the first day, deposit $0.05 into savings. On the second day, deposit $0.10, and on the third day, $0.15,” the blog explains.

“Basically, you add a nickel to the previous day’s savings every single day. Then by the last day, you will deposit $18.40,” the blog notes. “When you look at those numbers, they seem so doable! The best thing is that when you add it all up, the total you will put into savings will be a whopping $3,300!

Finally, one we all know well, there’s the Spare Change challenge.

“Whenever you get loose change, you put it in a jar or piggy bank. When that jar fills up, take it to the bank and put it in your savings account,” the blog suggests. “If you have never tried to save your loose change, it might surprise you how much you can accumulate.”

Mrs Save with SPP used the spare change route as part of her effort to boost her own Saskatchewan Pension Plan savings. Every time the piggy bank was full, we went to the coin counter, turned coins into bills, and then put it in the bank. Online, we had set up SPP as a bill payment, and presto, there’s another few bucks in the retirement kitty.

After all, your future you will greatly appreciate those savings, no matter what challenge you’ve selected to create them.

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Some of us may remember, back in the good old days, that when you went to get some gas, a friendly attendant rushed up to your window and got the pump going, while cleaning your windshield and checking the oil.

But that experience has long ago been replaced by self-service gas pumps. Are we heading that same route at the drugstore, dollar store, and grocery store? Save with SPP decided to take a look around.

An analysis by the University of Waterloo lists the “pros” of self-checkout as “saving the time of customers and preventing the checkout from becoming overcrowded.” As well, the report notes, “with the installation of self-checkout technologies, retailers can reduce the number of checkout assistants employed, or they may completely cut the checkout assistants.”

This, the article suggests, helps the company’s bottom line – fewer employees to pay, fewer vacancies to fill by HR, and a greater profit.

On the con side, the article notes that the cost of a four-lane self-checkout system may exceed $125,000. “Most small businesses cannot afford this technology,” the article reports. As well, and this is big, most people don’t like having to use self checkout machines.

The article, citing research from Accenture, found that “77 per cent of U.S. customers prefer interacting with humans than with digital devices in service-related issues.” There’s a lack of personalized service with the machines, particularly noted by “senior people who are used to person-to-person service and are more likely to need personal interaction; they might regard this new method of shopping as a lack of service.”

While the university concludes that maybe there should be more focus on personalized service than switching over to costly machines, it seems that every time you go shopping you see more of these machines in place.

A recent story in The Globe and Mail by Rob Csernyk, a former New Brunswick resident now living in Australia, says self-checkouts are really taking off Down Under.

“While living in New Brunswick, I was used to only half a dozen self-checkouts at the superstore near my apartment. But in Australia, self-checkouts are an outsized part of the grocery landscape. Many locations of Coles and Woolworths outlets – the country’s dominant grocery chains – have double that, if not more,” he writes.

Shopping recently at a Coles, he counted 40 self-checkouts and only two clerks helping, he writes.

But if the goal of self-checkouts is saving on labour costs and reducing long lines at the cash, there have been other unexpected consequences, he notes.

“I’ll let you in on a secret from Australia’s big bet: nobody’s happy. For grocers, self-checkout expansion has wrought more theft and a need to spend even more to combat it. For customers, being treated more like potential thieves rather than paying clients is unpleasant,” his article reports.

He concludes that maybe retailers should consider going back to the good old ways – checkouts that are staffed.

“Making shopping experiences more complex and uncomfortable for all shoppers is a daft way to solve the problems inherent with self-checkouts. It increasingly seems like going back to the tried-and-true cashier is a better solution, not to mention one that involves a lot less capital investment. Anti-theft measures don’t come cheap, and the bad press from customer complaints carries a hefty price tag, too,” he notes.

And the customer’s perspective is very important, reports USA Today.

“They just aggravate me,” Julie Domina says of self-checkout machines, telling USA Today that “if I’m going to be checking myself out, I want to get a discount because that means you’re not paying an employee to check me out.”

Hey – that’s a good point. We recall that when self-serve gas pumps first came out, the gas was cheaper if you pumped it yourself, versus getting someone to do it for you. Maybe that long-forgotten discount concept needs to be revisited for self-checkouts.

The article blames the pandemic for getting us going down the self-checkout road.

“While self-checkout technology has been in supermarkets since the 1980s, usage surged during the pandemic, when retailers were struggling to hire and customers wanted less human interaction. The share of transactions through self-checkout lanes hit 30 per cent in 2021, almost double that from 2018, according to data from the Food Industry Association,” the newspaper reports.

Higher theft rates experienced in recent years have prompted retailers to spend more on security, in addition to the cost of buying self-checkout machines, the article notes. Some of the problem is theft, but some of it is simply due to confusion using the machines, the article adds.

“While some losses may be from people using self-checkout to steal, others are from user errors by customers who weren’t trained to use the machines. Maybe the shopper didn’t notice that an item didn’t scan before bagging it, or keyed in the wrong item when weighing their produce,” the article concludes.

It will be interesting to see how Canadian retailers cope with this new technology going forward. Will we follow the Australian example and gear up on the machines, or will we see the opposite – a move away from self-checkout, perhaps, or making the machines more of a “fast lane” for customers with fewer items. Only time will tell.

Saving for retirement can be a self-service function if you partner up with the Saskatchewan Pension Plan. SPP will carry out the complex job of investing your retirement savings, through a professionally managed, low-cost, pooled fund. When it’s time to retire, your options include getting a monthly annuity payment each month for life, or the flexibility of the Variable Benefit option.

Check out SPP today!

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There was a time when taking debt into retirement was considered an absolute no-no. But in these days of higher living costs, less helpful interest rates, and the many temptations of debt, is owing money when you retire now the norm?

Save with SPP took a look at this topic, which is one that we are well acquainted with on a personal basis!

Well-known personal finance writer Rob Carrick recently covered this topic in The Globe and Mail. He cites figures from insolvency expert Scott Terrio that show that, according to the most recent data, “42 per cent of senior households had debt…. compared to 27 per cent in 1999. Vehicle debt held by seniors nearly tripled between 2005 and 2019, while mortgage debt quadrupled.”

(Save with SPP talked with Scott Terrio a little while ago on the topic of retiring with debt. Here’s a link to that article: Debt can squeeze the spending power of seniors: Scott Terrio | Save with SPP)

Carrick suggests that younger people have a conversation with their parents about debt.

“Parents helping their adult children financially is the new normal in family life. It’s less common for those kids to help their parents, but high debt levels among seniors suggest this could change. Boomers and Gen Xers, do you know how well set up your parents are in their retirement or pre-retirement years,” he asks.

An article in Forbes agrees that “retiring with debt is often considered a cardinal financial sin: Every dollar you owe reduces your income in retirement, after all.”

However, the article warns, trying to get out of debt before you retire might also cost you. Huh? “Blindly prioritizing debt reduction before retirement savings, particularly for low-interest debt, could shortchange your nest egg,” the writers at Forbes warn.

On the other hand, not prioritizing debt has consequences as well, the article continues.

Currently, the article notes, credit card interest rates are well over 20 per cent. “Paying interest rates this high would hamstring your finances at any stage of life, let alone when you’re living on a fixed income in retirement. That means you need to prioritize paying down as much high-interest debt as possible before you stop working—and then keep from accruing any new credit card debt.”

The folks over at GoBankingRates say debt is manageable for retirees, but it’s no picnic.

“Yes, you can retire with debt, but it may impact the quality of your retirement. Having debt, especially high-interest debt, can strain your retirement savings and limit your financial freedom. It’s important to assess the type and amount of debt you have and create a plan to manage it effectively,” their article notes.

The article recommends trying to “minimize or clear your debts before retiring.” You might need to think harder about when you want to retire, boost your savings, or even downsize as strategies to cope with debt, the article continues.

“Focusing on high-interest debts, like credit card balances, should be a priority. Developing a comprehensive plan on how to get out of debt before retirement can significantly ease your financial burden during your later years,” the article notes.

MoneySense provides some good news on this topic, noting that some of your debt will eventually get paid off – and that when that happens, your retirement spending power gets a boost.

“If you only have a small mortgage and a few years of payments remaining, your income requirements may be on the verge of a big decrease. I’ve seen a lot of retirees with generous DB pensions work hard to pay off debt, retire, and suddenly find they’re flush with cash flow because their $500, $1,000, or $2,000 monthly mortgage payment disappears,” MoneySense reports.

There are several themes here to think about – retirement with debt is not seen as ideal. But neither is not saving for retirement in order to pay off debt. If you do bring debt with you on the retirement voyage, each time you pay something off you’ll have better cash flow.

All the articles suggested consulting a financial professional to help map your personal route – that’s always good advice.

If you don’t have a workplace pension plan, or want to augment your savings, have a look at the Saskatchewan Pension Plan. With SPP, you can consolidate little bits of savings in various RRSPs into one place, and also make regular contributions. SPP will grow your investments in a low-cost, professionally managed, pooled fund, and when it’s time to collect, your options include monthly annuity payments for life or the flexible Variable Benefit option.

Check out SPP today!

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We all recall the closed borders and other travel restrictions that plagued us during the COVID-19 pandemic years. But, with (hopefully) the worst of that now in the rear-view mirror, it appears that travel may be making a comeback.

According to a recent media release from Allianz Global Assistance Canada, its Winter Vacation Confidence Index Survey showed a pretty sharp uptick for the season just ended.

A whopping 43 per cent of those surveyed planned to take a vacation this winter, up from 32 per cent in 2021, the release notes.

“With travel volumes nipping at the heels of pre-pandemic levels, an overwhelming majority – 84 per cent – of travellers feel they desperately need a vacation this year,” states Dan Keon, Vice President, Marketing & Insights at Allianz Global Assistance Canada, in the release. “A major driver of this ongoing travel comeback is the continued desire for revenge travel, with half of Canadians intending to unapologetically make up for lost vacation time that was postponed due to the pandemic.”

Interestingly, the release notes, Canadians planned to spend some of their “pandemic savings” on a bigger vacation this past winter.

“The average anticipated winter vacation spend has increased by 20 per cent to $3,193 since 2021. Overall, Canadian households are projected to spend around $14.3 billion on vacations in the upcoming year, eclipsing the pre-pandemic high recorded in Allianz’s 2019 annual survey. While pent-up demand is driving up spending, financial worries may be tempering the increase as 57 per cent of travellers shared they will be scaling back vacation plans this year due to inflationary pressures,” the release notes.

Other Allianz findings – six in 10 Canadians plan a holiday, and 74 per cent of travellers (perhaps in light of the recent pandemic) think having travel insurance is important.

OK, so where have we been going this winter and spring?

According to the Orlando Sentinel, ocean cruises have bounced back after some very lean years.

More than 31.7 million people took a cruise last year, the newspaper reports.

“The pandemic shut down sailing from March 2020 with only a small number of ships coming back online 18 months later in summer 2021. Cruise lines didn’t return to full strength until partially through 2022, so it wasn’t until a full year of sailing in 2023 that the industry could get a real handle on just what the demand had grown to as people returned to vacation travel,” the Sentinel reports.

2023’s total surpassed the last pre-pandemic year of cruising by two million, the article adds.

Air travel is also zipping along nicely, reports the 100 Knots website.

“According to the latest report by the International Air Travel Association (IATA), global passenger demand witnessed a significant uptick in February 2024 compared to the same period last year. The data, which represents about 83 per cent of the world’s carriers, reveals a 21.5 per cent increase in passenger demand, indicating a strong resurgence in air travel,” the publication reports.

Overall, the increase in travel is very good news for the global economy, advises The Robb Report.

“The folks at the World Travel & Tourism Council (WTTC) estimate that the travel industry will reach a record $11.1 trillion in 2024, eclipsing the prior high of $10 trillion achieved in 2019. Furthermore, tourism is expected to become a $16 trillion industry within the next decade and will represent 11.4 per cent of the global GDP by 2034,” the publication notes.

The WTTC’s Julia Simpson is quoted in the article as saying “travel isn’t just back, travel is booming. We’re talking about a really, really strong sector.”

If you’re planning on doing a little travel when you retire, it’s probably a good idea to start putting away a few bucks today for future boarding passes. And if you don’t have a retirement plan at work, you don’t have to do all the heavy lifting of investing your savings all by your lonesome.

The Saskatchewan Pension Plan, open to every Canadian with registered retirement savings plan room, will invest your savings in a low-cost, professionally managed, pooled fund. At retirement your choices include a monthly annuity payment for life, or the flexible Variable Benefit. Check out SPP today!

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We all have one or more of them, lying around the house, holding little caches of change. But how did the tradition of piggy banks come about?

Save with SPP decided to do a little digging about our porcine cash-saving pals.

Wikipedia defines the piggy bank as “the traditional name of a coin container normally used by children,” noting they are traditionally made of ceramic or porcelain.

“They are generally painted and serve as a pedagogical device to teach the rudiments of thrift and saving to children,” the article continues.

OK, but why are they shaped like pigs? “The earliest known pig-shaped money containers date to the 12th century on the island of Java. The Javanese term cèlèngan (literally `likeness of a wild boar, but used to mean both `savings’ and `piggy bank,’) is also in the modern Indonesian language,” the article notes.

In fact, Wikipedia adds, “a large number of boar-shaped piggy banks were discovered at the large archaeological site surrounding Trowulan, a village in the Indonesian province of East Java and a possible site of the capital of the Majapahit Empire.”

While most of these change-hoarding wild boar statuettes are small, the folks at Guinness World Records tell us that the largest piggy bank ever recorded was “achieved by Kreissparkasse Ludwigsburg (Germany)… on 18 May, 2015.” This monster piggy bank, Guinness reports, was 8.03 meters long and 5.54 meters wide.

“Money was inserted into the piggy bank using a small crane, carrying each coin to the slot one by one after inserting it into a smaller piggy bank at the bottom of the crane,” Guinness reports.

The only other piggy bank record that comes up is that of Leo, a cocker spaniel owned by Emily Anderson of Aberdeen, Scotland, who holds the record of being able to put 23 coins in a piggy bank in under one minute.

OK, they can be small, big, have origins in Java, and a canine deposit connection. We wondered what people do with their piggy banks, and the money in them?

A few years ago, ABC News reported on the delightful story of Aryana Chopra, then five, who used money she saved in her piggy bank to buy residents of a nearby nursing home “a New Year’s cake as well as a decorative Santa Claus and a vase.” She also gave each of the 200 residents a handmade card, the article reports.

Many people collect piggy banks, reports the Vintage Virtue blog.

Few of the very earliest piggy banks survive, the article notes, because they had to be smashed with a hammer to retrieve the coins within. Once the idea of having a removeable plug in the base of the bank began, banks “were saved from destruction, making them a fun collectible today,” the blog reports.

Collectible banks have been made in Europe and the U.S., and the article suggests you do some online research if considering buying a bank you think has value.

“If you are interested in the traditional `still’ piggy bank, the cast-iron banks manufactured between the 1870s and the early 1930s are considered the most valuable from an investment standpoint. Early cast-iron banks were made by hardware foundries which were often out of business by the turn of the century. Foundries manufactured some later cast-iron banks as a way to diversify their offerings and stay in business during the lean years of the Great Depression, but by the mid-1930s, cast-iron still-bank production had come to an end,” the article notes.

“Through careful selection and research, you can become part of a vibrant global community that seeks to preserve and celebrate the history of these simple yet charming objects. So join the party and get collecting,” advises the blog.

We have two piggy banks on the go here. One, a porcelain armadillo featuring a Texas flag, is where we put our U.S. change. When we go over the bridge to Ogdensburg, N.Y. we run the coins through a change machine and then add the bills to our shopping budget.

Our other one is shaped like a delivery truck, and the coins it carried have mostly been used to bolster our Saskatchewan Pension Plan savings – we convert the change to bills and then deposit them in the bank before making a “bill payment” to our future selves.

If your piggy bank is filled to the brim, why not consider making a contribution to SPP, the made-in-Saskatchewan do-it-yourself pension plan that’s open to any Canadian with registered retirement savings plan room? Check out SPP today!

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