Category Archives: Personal finance

Reality check – working past age 65 may not be the best solution

When you ask people when they plan to retire, many say that they’ll keep working, even past age 65. None seem to be concerned about things like their health, or whether or not their employer will still provide benefits, or if it might be a good idea to yield the job to a younger person.

A poll out recently by CIBC suggests that a surprising one quarter of Canadians who are retired regret that choice. “Twenty-seven per cent of retired Canadians regret having left their jobs and 23 per cent of retirees have tried to re-enter the labour market,” CIBC’s research notes. “When asked why they chose to return to work, 59 per cent said it was for intellectual stimulation and 50 per cent said it was because of financial concerns.”

Certainly, leaving a full-time job means leaving colleagues and friends behind. But the financial concerns are perhaps more telling.

Recent Bank of Canada figures cited by Better Dwelling show household debt is an eye-popping $2.16 trillion, with most of the debt on mortgages. Even if you were planning to retire at 65, that debt is a factor that could throw a wrench in your plans.

An article in The Province suggests that carrying debt into retirement may be a reason people are thinking of going back to work. “When you need more of your retirement income to service debt, there is less left over to enjoy your golden years,” the newspaper points out. “Some think that they’ve got savings to help them top up what they’re short on after they retire, but that’s not necessarily the best strategy. If you need your savings to generate enough income, depleting your savings multiplies the negative impact on your financial situation at a time when you’re least able to manage through it.”

So what options do seniors have to deal with post-retirement debt? Going back to work is one, and another is a reverse mortgage. “On a national basis, reverse mortgage debt stood at $3.425 billion outstanding as of October 2018, marking its highest point in 8 years,” reports Real Estate Professional magazine.

The Money Ning blog says that while there are pros for employers in keeping older workers on the job, such as retaining their experience, and reducing government program spending, there are also cons.

“For workers who are either not passionate about their work, or who are working in a job that is physically demanding or extremely stressful, the idea of keeping that job for longer is not a pleasant one,” the blog notes. “In some cases, working past the mid-60s may not even be entirely safe,” the article continues.

Will employers still offer the same benefits to those age 65 and older? It’s certainly worth checking before you decide to stay put.

Other negatives are preventing younger workers from advancement, which affects their own ability to grow their income and save for retirement. These kids often can’t afford to buy and end up back home with their retiring parents.

So let’s recap. Boomers are carrying record debt levels as they approach retirement. Once retired, they must use their pensions or personal savings to pay down debt, leaving less money for fun and travel. That makes many crave the workplace once again, or have to do reverse mortgages to make ends meet.

Sure, it would be great to retire without debt, but it seems less possible than a generation or two ago. The takeaway here is that notwithstanding debt payments, we all need to put as much as we can away for retirement. Those savings give us options and more wiggle room at age 65, and maybe the ability to enjoy life without meetings, commuting, performance reviews and other workplace drama.

If you don’t have a pension plan at work, or if you do and want to supplement it, the Saskatchewan Pension Plan is a great place to start, with low fees, a strong investment track record, and flexible ways to turn savings into income at retirement. Check them out today at saskpension.com.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Shelties, Duncan and Phoebe, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Now that you’ve saved for retirement, it’s time to spend wisely: Warren MacKenzie

If we save diligently, or inherit wealth, or otherwise get to retirement with money, that’s half the battle, says Warren MacKenzie, head of financial planning at Optimize Wealth and the author of three books on retirement planning.

More important, he told a recent meeting of the Ottawa Share Club, is spending your money wisely.

MacKenzie told the story of three siblings who each inherited multi-millions. After a few years, he says, “one is broke, and living in a trailer with his girlfriend.” A second has burned through three quarters of the money already on “cars, clubs and (the high life),” while the third sibling, an accountant, has most of her share left, is overwhelmed by it, and feels it was “the worst thing that ever happened to her,” he told the audience.  All three, he explains, lacked a strategy to use their wealth wisely.

MacKenzie says that many people fail to accurately estimate their retirement costs. “You need to calculate your expected expenses, and exaggerate them” to build in some room for the unexpected, he says. You “should assume you will live to age 100,” he adds, and estimate what your future medical costs might be for things like long-term care.

If you do that, and you find that there’s still a surplus, you may be wasting the opportunity to use some of your savings for other purposes, he says.

Most in the financial industry “don’t encourage people to think about a surplus,” he says. That’s because the financial sector makes money from managing your investments, but don’t want you to take the money out and spend it.

But caution about the future, fears of being “hit by lightning or a tornado,” compel many of us to hang on to our savings, even if we have more than enough to cover our needs.

Research, he noted, shows that there is a relationship between money and happiness, but it is different than one might think. Those making only $10,000 a year tend to be less happy than those making $50,000,” he says. But there is “no difference in happiness” for those making any amount that is more than $50,000.

“Money is a lot like food – too little is bad for you, but too much is bad for you too,” he explained.

In his view, those with more than sufficient wealth to cover their retirement expenses have options.

  • Do nothing, like most people, and hang on to the money for life (you’ll face income taxes and the stress of managing it)
  • Live richer and treat themselves more (spend the surplus on yourself)
  • Pass money on to the kids, but in stages (communicating with them about when they need it)
  • Give the money away (and let the kids figure things out on their own)
  • Create a multi-generational legacy (such as a foundation)

He says that communication about money between the generations is critically important; the kids should know if there is money coming, but should also know if there isn’t. A surprising 70 per cent of attempts to transfer wealth between generations fail, he pointed out. “Perhaps it is better to give money away while you are living – there are few legal disputes about smaller estates,” he says.

It’s a good thing, he says, to leave your kids no money but to pass on good values. It’s also good to leave money and values. But, he says, it is not a good idea to leave money “without passing on good values.”

Philanthropy is a positive thing that helps out the charity “but benefits the donor even more,” he said. He concluded his talk by noting that “he who knows he has enough is rich.”

Warren MacKenzie’s latest book, is The Philanthropic Family, subtitle – 5 Keys To Maximizing Your Family’s Happiness And Leaving A Lasting Legacy.  We thank the Ottawa Share Club for inviting us along to hear Warren MacKenzie’s talk.

Before you think about what to do with any retirement surplus, you need to be saving for that first day after work. An option for your saving strategy is a Saskatchewan Pension Plan account. Check out the SPP today.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Shelties, Duncan, Phoebe and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

The “baffling unpopularity” of annuities

What if there was a way to convert some or all of the money you’ve saved up for retirement into cash for life – monthly payments for as long as you live?

And once you made this conversion, you’d no longer have to make any investment decisions for this money; you’d just have to trot over to the Super Mailbox each month to collect a cheque.

There is just such a product, the annuity, but for some reason, it’s not something people choose very often. Writing in MoneySense, David Aston calls annuities “the best retirement product that hardly anyone buys,” adding that they amount to a sort of do-it-yourself defined benefit (DB) plan.

“Like DB pensions, (annuities) provide guaranteed income for as long as you live. But while employer pensions are considered the gold standard of retirement income plans, few Canadians ever think about annuities,” writes Aston, calling their unpopularity “baffling.”

Aston says that for some people, such as those with wealth or who have DB pensions from work, an annuity is probably not necessary. And others don’t like the idea of “their finality – once you give your cash to the insurance company, you’re locked in for life.” There’s no more “growth potential” for this investment and you can’t tap into it for lump sum amounts, he explains.

But, says Aston, they are ideal for cash flow. Many people buy an annuity which, along with government pensions, “meets all your non-discretionary needs,” such as keeping the lights on, the furnace going, and the rent paid via the steady, predictable and guaranteed income. And if you convert part of your retirement savings to an annuity, you can “afford to take more risks with the rest of your portfolio.”

One would imagine that those who took out annuities prior to the market downturn in 2008 are happy with their choice, because while you may miss out on investment gains, you also miss out on investment losses with an annuity.

In a video posted to Save with SPP, Moshe Milevsky, Professor of Finance at York University’s Schulich School of Business, calls annuities “insurance against something that is really a blessing, longevity.” Because the annuity pays you for life, you can never run out of money, he notes.

Writing in the Globe and Mail financial columnist Rob Carrick notes that unlike withdrawing money from a RRIF or other vehicle, the withholding tax on an annuity is not automatically deducted but is taxed the same as regular income, he explains.

He reports that a good time to consider buying an annuity is when you are older. “The later you buy, the shorter the period of time the insurer selling an annuity expects to have to pay you. As a result, payments are higher than they would be if you bought at a younger age,” he explains.

The cost of an annuity depends on current interest rates, which have been quite low for a while but are rising, which is good news for annuity buyers.

The Saskatchewan Pension Plan (SPP) is somewhat unique in that it can convert your savings into an annuity. They offer four different kinds of guaranteed annuities, and your money continues to be invested by SPP while you sit back and wait for the monthly cheque. For full details, check out the Retirement Options chapter in the SPP Retirement Guide.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Book lays out tactic on how to get out of debt – fast

These days, when Canadian household debt loads are at record levels – an incredible $1.70 of non-mortgage debt exists for every dollar earned, according to Zero Hedge – it’s not surprising we are all buying more lottery tickets and wondering if grandma thought about us in her will.

How are we going to pay off all this debt, and will we get rid of it before Old Age Security cheques start coming?

There is a way to get out of debt fast, state husband and wife Alex and Cassie Michael, authors of The 2% Rule To Get Debt Free Fast. At the heart of it, the idea behind the book is quite simple. “Track your monthly expenses and earnings,” the authors state. “Use this actual information for the following month to decrease spending by two per cent and increase income by two per cent.”

Most of us, the book states, have no idea on where our money is going, so tracking is explained in detail and better record keeping is advised.  The fun part is putting yourself on a two per cent spending diet for a month, and then adding that “found” money to your next month’s budget, the pair of authors explain. Then, you do it again. You live on 98 per cent of the 98 per cent, and add the difference to the income side.

The authors began their relationship in debt and gradually rang up an eye-popping $108,000 debt load in three short years. “We discovered we were paying over $1,200 in interest each month with an estimated payoff of 64 years paying the minimum… this shook us to the core.”

“The stress and strain our massive amount of debt placed on our marriage was almost overwhelming. Not only was our marriage suffering, but so was our health,” the authors write.

Once they moved to the 2% rule, they got things rolling the right way. “We just kept moving forward with the small, gradual goal to spend two per cent less than the actual results from that month. There wasn’t any falling off the wagon or feeling of failure. We just had to pull ourselves together, set the next gradual decrease from that prior month’s actual spending, and move forward with our new goal.”

In just over three years – not 64 – they were debt free, and still using the 2% rule for other financial projects. They give good advice on how to use their strategy to build an emergency fund, pay off a mortgage early, save for retirement, and more.

The authors do a fantastic job of explaining the hidden pitfalls of excessive debt. They look at the real costs of credit cards, mortgages and car loans, and debt in general. Even when the debt becomes gigantic, they write, “often, we just want to pretend that everything is OK and that nothing is wrong.”

A breakthrough was in learning to understand their spending weaknesses. They would have had no problems “if we had been more mature in our relationship, both to one another and even to our financial situation. Without realizing or even discovering our weaknesses, it was easy to continue down a path that resulted in the same problems we had before.”

Study after study shows that debt is the main restrictor of retirement savings. Any way to reduce debt is worth a shot – and a good destination for some of the money you save could be your Saskatchewan Pension Plan account.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

What’s your “saving resolution” for 2019?

What’s your “saving resolution” for 2019?

Let’s face it, January is always an optimistic month. We’re going to lose weight, we’re going to take that trip, we’re going to de-clutter the house, and so on.

But what are people’s “saving resolutions” for this brave new year? Save with SPP set out to find out.

Over at the Meridian Good Sense blog, writer Cindy Waxer sees several great financial ways to start off the New Year.  First, she writes, “tackle credit card debt.” Use some of your Christmas money gifts, or a bonus from work, to pay down higher-interest debt, she advises. Other ideas include saving for retirement, “getting aggressive” with your mortgage, fine-tuning your budget and to “assess your financial situation – honestly.” If you are getting too far into the debt side of the ledger, it’s time to make changes, she notes.

At the Money Aware blog in the UK, ideas include writing down savings goals, sticking to a budget, and “saving in a way that works” for you. If making automated savings withdrawals doesn’t work for you, try anything that works, including “shoving coins in a special money tin” that must be pried open with a can opener.

Save with SPP personally endorses the money tin concept. All our change goes into a little metal piggy bank, and when the bank gets heavy, we dump the coins in one of those money counting machines at the grocery store, deposit the bills in the bank, and then make an SPP contribution. It adds up!

Ideas from US News and World Report include having “no spend” days, spending time to “get healthy… without joining a club,” and using a “fast track” approach to manage debt. “Instead of saying, `I’m going to repay all my debt this year,’ which is a lofty goal, commit to fast-tracking the payoff process. That may mean contributing an extra $50 per month to your debt bill,” the newspaper advises. If possible, use automated bill payments to make the whole process simpler, and build “more” into your debt repayment plans, the article suggests.

When you look at these various articles, a theme emerges. You need to be aware of where your money is going in order to be able to save any of it. Gain control of your spending and you’ll find savings a breeze. And, as we say, socking away even small amounts of money into your Saskatchewan Pension Plan account is something your future you will thank you for – every month!

Here’s wishing everyone a very happy, prosperous, and savings-friendly 2019!

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Getting the most out of retirement

 

Retirement is unique in that it is something we can’t really imagine until it happens, yet we still are urged to prepare for it, even while we are young.

To help us all visualize what retirement is like, Save with SPP took a look around to see how people are enjoying their retirement, and why.

Over at the Love Being Retired blog, the operative concept is freedom. The blog’s author talks about “knocking out my to-do list,” compiled over many years, as well as setting one’s own pace and trying new things. “A little excitement and a little variety are in the cards for me,” the blogger notes. Other things retirement will allow are spending more time with friends and family and having time to write.

At the Boomers Next Step blog, retirement is seen as an opportunity. “The traditional concept of retirement seems to have faded and is slowly being replaced by a smorgasbord of dynamic opportunities, all offering different variations of purpose, fulfillment and freedom,” the blog states.

The smorgasbord of retirement, the blog continues, can include searching for a new, post-career job, “creating a laptop lifestyle,” (work that you can do anywhere), and then “travel adventures… (and) pursuing your passions.” A key for the blog is having the income to fund “our travel, our sailing, and our other lifestyle choices.”

A study, called Leisure in Retirement: Beyond the Bucket List, featured in the Huffington Post, found retirement to be “the most liberating and enjoyable time” of life. And, the study notes, it doesn’t always have to be about money.

Time, the study found, is in abundance for the retiree. “Collectively, retirees will enjoy 126 billion — yes, BILLION — hours of leisure time this year alone. And as tens of millions of boomers move from being `time constrained’ to `time affluent’ over the next 20 years, they will collectively amass 2.5 trillion hours of leisure time,” the study notes.

“Suddenly what you want to do trumps what you have to do. It’s exhilarating to have this kind of freedom,” one focus group researcher told the study’s authors.

The last word belongs to Maclean’s, who write that retirees need to factor in new and fun things to do even as they unwind their retirement savings. “Manage spending carefully on the basics like shelter, transportation and groceries to ensure you have ample money left to spend on the non-essential activities like travel, hobbies, entertainment and helping others. It’s these extras that make for an active and rewarding retirement,” the magazine recommends.

Time and freedom will be abundant commodities when you detach yourself from your career. Savings from work will come in handy as you try new things. Think about joining the Saskatchewan Pension Plan so that those savings can be put to good use as retirement income, down the road.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Why some people don’t retire

 

We were chatting about retirement with a salesman at the local car dealership when he rolled out a bombshell – in his early 70s, he had no plans for retirement. He loved what he does and wants to keep on doing it for as long as he can. Maybe in his mid- to late 80s he might get a cottage, he says.

That made Save with SPP wonder if others aren’t retiring – and why.

The Wise Bread blog says there are five types of people who don’t retire – the “broke non-retiree, the workaholic, the successful investor, the life re-inventor and the mega-successful lifers.”

The article notes that “a startling 47 per cent” of Americans “now plan to retire “at a later age than they expected when they were 40.” The reason why – 24 per cent of Americans 50 and older have saved less than $10,000 for retirement.

For workaholics, the article notes, “it can be devastating to face retirement,” with many fighting it “tooth and nail.” Successful investors, the article notes, may have bought real estate, gold, or stocks early and now have enough money that they don’t need to work. Life re-inventors retire from one job and take on a new, totally different one, and the “mega-successful” tend to be CEOs, actors, star athletes, folks who have sufficient wealth to not worry about a formal retirement.

The New York Times reports that there are 1.5 million Americans over the age of 75 who are still working. Judge Jack Weinstein, age 96, still gets up for work every day at 5:30 a.m., the newspaper reports. “I’ve never thought of retiring,” he tells the newspaper. “If you are doing interesting work, you want to continue.” The paper says that those who are employed in jobs “in which skill and brainpower matter more than brawn and endurance” often keep going past usual retirement age, as do the self-employed and industry stars, like Warren Buffett.

An article in Market Watch picks up on another point – there are many people who don’t like the sound of retirement. “The idea of a retirement where a person has little responsibility, and, worst of all, interacts with very few people, just isn’t appealing to the current crop of pre-retirees,” the article notes.

A more Canuck-friendly view comes from Canadian Living, which lists the main reasons for not retiring as “you need the money, you like working, you hate retirement,” and significantly, “you’ll collect bigger benefits” and “you’ll lose your RRSP later.”

“If you collect your CPP at age 70,” the article points out, “you’ll get 42 per cent more than if you retired at 65.” Similarly, if you collect CPP at 60, you get 36 per cent less than if you collected at 65, the article states.

On the RRSP front, since you must convert your RRSP to a RRIF (or buy an annuity) by age 71, delaying retirement means you will have more money in retirement, the magazine notes.

These are all good points. Save with SPP notes that there are many folks who simply live in the now and won’t think about retirement until they must. The idea that we can all keep working forever is a nice one but tends to be an exception, rather than a rule.

We may not want to retire, but the vast majority of us probably will. Even if you’re in the group that has saved very little up until age 50, there is still time to augment your life after work with some retirement savings. The Saskatchewan Pension Plan is quite unique in that it is open to all Canadians and provides an end-to-end retirement vehicle – your savings are invested and turned into a lifetime pension at retirement time. It’s a wise choice, even for those who don’t want to retire.

 

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Looking back on 2018’s worst ways to save

As 2018 rolls along to its grand finale, it’s a good time to reflect on the year that was.

Today, however, we want to look at something a little different – let’s have a look at what not to do when it comes to saving, the worst ways to save of 2018.

At the Money & Career Cheatsheet blog, there are several “worst practices” for saving outlined.

First, the blog notes, don’t always buy everything in bulk. “You’ll just end up spending more money in the long run,” the blog advises. “Let’s be realistic. Are you really going to use these bulk items in a reasonable amount of time? And where are you going to store all of this stuff?” Better, the blog advises to “cherry pick” and buy items when they are on sale at a regular grocery store.

Other tips from the folks at Cheatsheet: avoid store credit cards, which are easier to get but often have the highest interest rates, and don’t skip on retirement savings. “Don’t make excuses for why you can’t save for retirement. You’ll be sorry you didn’t start earlier. Start contributing to your retirement fund as early as possible,” the blog advises.

At the Smartasset blog, the biggest savings mistake identified is not paying off “bad” debt. “Debts such as credit card and personal loans stick with you and tend to have higher interest rates than secured debt,” the blog post explains. “Thus, the longer it takes you to pay these debts off, the more you end up paying in the long run.”

The Sweating the Big Stuff blog says eating at fast food restaurants may feel cheaper than dining at a restaurant, but the less-healthy food will cost you your health. As well, the blog says BOGO-type deals are rarely a great thing. “When you `get one free when you buy four,’” it means you’re buying four when you only wanted one; it means you’re wasting money, not saving it! Think really hard before you get that `great’ deal that’s making you think you’re such a genius,” the blog advises.

The Slice blog echoes some of these points, but adds a few more – paying only the minimum on your credit cards, and cheaping out on insurance – going for the lowest rate rather than focusing on what you want covered.

Save With SPP can think of a few more. It’s always better to save up for a vacation than to get it on credit. You’ll leave the beach and will head home to an inbox full of bills. Using credit card points must be done right. The points are great, but greater if you aren’t running a balance on your cards. Pay the card off each month or as quick as you can. Another one that jumps to mind is paying debt with debt; it seems to fix your short-term problem but creates a much bigger long-term problem.

As we get ready to enjoy the end of 2018, let’s all think about ditching any bad savings habits we have in 2019. We can, instead, make a resolution to do what Cheatsheet advises, and direct some real savings to retirement. The Saskatchewan Pension Plan offers a very flexible way to do just that.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Home is where the hat is – unless it’s cheaper somewhere else

At the office, where we were involved in pension plan communications, we used to joke (as 30-somethings) about what our future retirement would look like.

One theory at the time was that where you would be in retirement would depend on your future income. If you had a big income, you’d be in the Big Smoke. If you didn’t, you’d be shopping for a double-wide trailer in rural New Brunswick.

While that’s an extreme example, our predictions from the ‘90s are coming true. Sometimes your retirement income will impact where you’ll live.

“If retirees could take their pick,” notes an article in Pay Day, posted on Yahoo! Finance, “most would probably want to spend their golden years somewhere warm, beautiful and affordable.” However, if a retiree is relying only on CPP and OAS, the article says, the list gets a little shorter.

The article suggests Moncton, NB; Lacombe, AB; Stratford, ON; Brandon, MB and Halifax, NS as places where limited dollars go the longest. These cities are selected because real estate is affordable, they have great services and healthcare, and the quality of life is high. Taxation rates and value for the dollar are also factors.

A similar list can be found in MoneySense.ca. The top seven retirement destinations are Moncton; Joliette, QC; Ottawa, ON; Winnipeg, MB; Canmore, AB and Victoria BC.

The MoneySense list looked for places that had “a thriving arts scene… a strong sense of community… easy access to airports… and pleasant weather.” Good transit is also important, the article notes.

We see many of our friends selling their big houses in Toronto and moving to smaller, more affordable communities elsewhere in the province. The idea here is that the proceeds from the sale of the house in the city are more than enough to buy a house in a smaller town, and you can bank the difference.

An important step you can take today to deal with tomorrow’s retirement living decisions is to bank a bit of your salary for life after work. The Saskatchewan Pension Plan provides you with an end-to-end system that turns your savings into investments, and those investments into future income.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

What do people tend to give up when they retire?

For most of us, retirement is a time when we are expected to make do with less income. That led us to wonder what, if anything, people give up when they decide to take the retirement plunge.

The news isn’t all that bad.

According to CNBC, via Yahoo! Finance, it is recommend that – by age 40 or so – you begin to give up “mindless spending, lifestyle inflation, excess living space, and a willingness to wait and see.” You won’t, the article suggests, be able to afford these things when you are retired.

The “wait and see” advice refers to your expected future spending, the article says. You’ll give up commuting and being stuck in traffic “and will probably spend more in other categories, like entertainment, recreation and travel,” the article states. You should factor these expected future changes in expenses into your savings plan, the article advises.

An article in the Globe and Mail offers a slightly less rosy viewpoint.

When you retire, the article notes, citing findings from a CBS Moneywatch article by Steve Vernon, we can lose our “engagement with life” when we stop working. “You can get engagement with life from working, but you can also get it from taking up causes, volunteering, pursuing hobbies, and contributing to your family and community,” the article notes. Failing to do that can, in some cases, actually shorten your life – so it’s an important thing to avoid giving up.

Another thing we often give up, notes Casey Research, is our active income from working. Not working means we lose our work contacts, and giving up on active income means “your ability to make smart investment decisions drops because of your dependence on passive income.”

On balance, however, there are more things that are good to give up than bad, suggests US News and World Report. You can, the article says, give up on “the drug of ambition,” and can stop worrying about promotions, better titles, or offices with a window.

You can give up not having time for movies, books and TV shows, and can still choose to not give up working altogether, the article adds. Never again will you not have time to volunteer, travel, and spend time with family – you will be “living the dream” in retirement, the article concludes.

You’re in charge of that future dream, both the financial and lifestyle side of things. A great way to save for retirement on your own is through the Saskatchewan Pension Plan, which is open to all Canadians. Be sure to check it out today.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22