Planning critical in The 5 Years Before You Retire

We all know we should start thinking hard about retirement at some point.  But when?

Emily Guy Birken, author of The 5 Years Before You Retire, believes that your last 60 months at work is the best and most realistic time to polish off your retirement plans. That’s because those last five years represent “the point at which it really hits home to most people that they’re actually going to retire in the foreseeable future.”

Things, she writes, have changed. Fifty years ago, she writes, “most workers took retirement at age 65, and life expectancy for men was a mere 66.6 years of age – meaning that most retirees only enjoyed just over a year and a half of leisure.” That shorter lifespan made generous pensions more affordable for employers, because “they didn’t expect to pay them for very long.”

Now, she writes, only about 22 per cent of American workers (the book is aimed at a U.S. audience) are “offered a traditional defined benefit pension,” meaning most have to save on their own via capital accumulation plans (here, this means defined contribution plans and RRSPs).  As well, they can expect to live much longer.

So if you are saving on your own, are there things you can do in the last five years of work that will help you? Birken suggests downsizing your home, paying off or reducing your mortgage, taking in roommates or boarders, moving somewhere that is cheaper, going down to one car and cutting back on restaurants and entertainment. Those steps can really help you free up money for retirement savings, she notes.

She writes that drawing down the savings is tricky. “Determining how much you can afford to withdraw each year is more complicated than simply dividing your nest egg by the number of years you hope to live,” Birken notes. A good rule of thumb, she writes, is the so-called “four per cent method,” where your goal is to withdraw up to four per cent of your savings while reinvesting the other 96 per cent.

Another good strategy is an annuity, idea for those “who struggle with money discipline.” An annuity will give you lifetime monthly income, but she says they are not all the same so you should explore all annuity options before choosing the one that is best for your situation.

Birken says that if you possibly can, pay off your mortgage before you retire, because it is “likely your largest monthly expense.” However, these days houses cost more so about 40 per cent of us do carry mortgages into retirement.

Any debt in retirement is a burden, she writes. Yet in the US and Canada, most retirees still have debt. If you have five years to go before you retire, she advises, “prioritize your payment strategy to destroy high-interest debt, such as credit cards and car loans, first.”

There are lots of great tips in here, and although much of the health insurance and government programs part is not relevant to Canadians, this book can give you some good ideas on how to maximize your last years of full-time earnings.

And remember – any money saved in the 60-month run-up to retirement can easily be added to your Saskatchewan Pension Plan account, and the plan does offer a variety of annuity options. Check out the options available.

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

Nov 5: Best from the blogosphere – Save a little, save a latte

A look at the best of the Internet, from an SPP point of view

Save a little, save a latte?
We continually hear that we aren’t saving enough, and that we all need to get cracking on building up those savings. But how?

An article from Money Instructor  makes the interesting argument that in order to get the savings ball rolling, you need to give up small expenditures, and then stash the savings away.

The article talks of the “Latte Factor”.

“Many people will think nothing of spending $2.50 each and every day on an afternoon latte,” the article notes. “It is true that $2.50 is not that much money… however, if you were to add up that $2.50 a day, it becomes $12.50 each work week.” That’s $52.50 a month, and $630 per year, the article notes.

We all don’t buy lattes, but there are certainly other habitual and largely unnecessary expenses we could give up in order to boost our savings, the article notes.

“The first step in finding your (Latte Factor) is to write down everything you spend for a month or longer,” the article advises. You’ll find many things may be slipping through the cracks in your spending, the blog adds – “vending machines, the convenience store, lunches, and dinner at fast food or restaurants.”

The Smart About Money Blog offers sage advice as well.

“Pay yourself first,” the blog advises. Savings should be a “fixed item” in your spending plans, the article notes. Make it automatic, the blog continues – “set up an automatic transfer from your chequing account to your savings account each month.” The blog also urges people to save one-time payments such as tax refunds, bonuses, tips, or “proceeds from garage sales” to savings accounts.

Another idea we’ve heard is to save up all change, as well as winnings from scratch tickets or money from bottle deposit returns, in a piggy bank. When the bank gets heavy, it’s time to deposit the money in savings.

Any road that gets you to more savings is the right one. And an excellent destination for those savings is a Saskatchewan Pension Plan account. Your money will be professionally managed at a very low cost, will grow over time, and can be converted to a lifetime annuity when you 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

 

Oct 29: Best from the blogosphere

A look at the best of the Internet, from an SPP point of view

How to start the good habit of saving
We all know about bad habits – they are easy to start, hard to give up, and generally provide a lot of pleasure, guilty or otherwise.

But good habits – more kale, perhaps, or jumping on the elliptical, or getting out of debt – all seem harder to start. Why?

Interviewed in the Globe and Mail, Manulife’s Bob Tillman warns that with disappearing workplace pensions, the habit of retirement saving needs to start early, when couples are young.

“If people start sooner there’s more ability to make a difference,” he states in the article. “No matter how much money you make, it becomes much harder as you get older, if you haven’t been saving, to save anywhere close to what you’ll need to come close to your pre-retirement income.”

His key tip is to make the savings automatically, every pay day, before you have a chance to spend it on anything else. The earlier you start, the better, he adds.

Start small, suggests The Balance. “Focus on the fact that you’re saving something. It doesn’t have to be a big amount. $5 is better than $0, right? Not many people start their financial journey with thousands of dollars in the bank,” an article on the site states. You can ramp things up later, the article adds.

The UK-based Money Advice Service blog suggests what this writer thinks of as the Uncle Joe rule, namely, that you should always live on something less than your full paycheque. Uncle Joe used to tell us to “pay ourselves first” by putting 10 per cent of every cheque away. The blog suggests five per cent.

“Think about saving once you’ve paid your main bills,” the blog advises. “If you find that you can do this, then try to save at least five per cent of your income – the more you’re able to save, the better.”

To recap – start early, make it automatic, begin with a small amount and ramp it up, and try to live on less than 100 per cent of your pay.

And the Saskatchewan Pension Plan is a great place to put away those savings. They can do automatic withdrawals from your account so that you are paying yourself – savings-wise – first.

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

 

Retirement “think tank” group looks for smart solutions for retirement security

The National Institute on Ageing is a relatively new university-based think tank focused on leading cross-disciplinary research, thought leadership, innovative solutions, policies, and products on ageing.

The NIA brings together thinking not only on the money side of retirement, but the health side as well.

So says the NIA’s Dr. Bonnie-Jeanne MacDonald, PhD and FSA (she is also resident scholar at Eckler Ltd.), who recently took the time to speak with Save with SPP. “A happy, healthy retirement is not just about money,” Dr. MacDonald notes, adding that NIA hopes to tap into university, government and other worldwide research to come up with “better ideas that will help Canadians as they age.”

One aspect that Dr. MacDonald has done much research about is the “decumulation” phase of retirement, the period when savings from the work years are used to finance life after work.

“Retirement planning used to focus on saving up until age 65,” she explains. You would then start spending and travelling, with “the old assumption (being) that you would begin to need less money as you aged, that you wouldn’t be spending as much by age 90.”

However, Dr. MacDonald notes, this type of thinking overlooked the possibility that retirees might eventually need to pay for age-related healthcare costs, including living in a nursing home.

In reality, many retirees in their 60s and even 70s “can still earn money, and can choose to downsize, or reduce spending. Their expenses are flexible,” Dr. MacDonald explains. “Once you are 80 to 85, there is less flexibility, expenses are increasingly less ‘voluntary’ (namely the costs arising from declining health) – so it is at this age when having a steady stream of income becomes much more necessary for financial security.”

What she calls “shifting socioeconomic customs” have driven changes in the way retirement money is spent and the effect it has on individuals and families.

“Society has shifted, women are now working more and are not able to provide elder care without accruing considerable personal expense,” notes Dr. MacDonald. Even still, the majority of caregivers are women. The NIA’s report on working caregivers, authored by Dr. Samir Sinha, a geriatrician and Dr. MacDonald’s colleague at the NIA,  shows that women are not only more likely to be working caregivers, but that they provide much more care to their elderly relatives than do men. What’s more, the typical age at which women provide care overlaps with peak career earning opportunities and with their own family building, which in turn causes a knock-on effect on their lifetime earnings and income potential. Financial independence in older age has significant ripple effects, beyond just the individual.

In the past, it used to be more likely that the family would look after elderly parents, helping to feed them, socialize them, prepare their taxes, transport them, and so on. And while 75 per cent of elder care is still done by the family, increasingly people are finding they have to or want to pay for their own care as they enter their late 80s and 90s. And while family caregivers play an important role in the lives of the elderly, people generally prize their independence. But independence also comes at a cost. “It costs a lot of money to replace (the care provided by family), it has become extremely expensive for nursing home care.,” says Dr. MacDonald.

While some retirees can afford to cover the costs of their own care, those who can’t must be assisted by the government, she explains. “The overall effect of this is that some older people aren’t decumulating their savings as expected. They are holding onto their money; they are concerned about the future,” she adds.

Dr. MacDonald is the author of a recent paper on this topic for the C.D. Howe Institute called “Headed for the Poorhouse: How to Ensure Seniors Don’t Run Out of Cash Before They Run Out of Time.” The paper suggests the creation of a government-sponsored LIFE (Living Income for the Elderly) program that would provide additional life income beginning at 85.

“LIFE would provide longevity insurance to Canadian seniors at their most vulnerable time of life… giving them choice, flexibility and income security at advanced ages,” she writes in the paper.

In an article for the Globe and Mail written last year, she suggests women – who live longer – consider not starting their CPP benefits until they are older. “Starting CPP benefits at the age of 70 instead of 65 will increase a person’s CPP by 42 per cent,” she notes in the article.

NIA is looking at other ways to boost income security for older retirees. One way, says Dr. MacDonald, would be to find ways “for people to stay in their own homes longer.” Another way would be to allow family members providing care to be paid. Currently rules generally allow paid caregiving by strangers, but not by someone’s daughter,” she notes.

We thank Dr. MacDonald for taking the time to talk with us.

Remember as well that before decumulation can occur there needs to be retirement savings. The Saskatchewan Pension Plan offers a flexible savings program for individuals.

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

Oct 22: Best from the blogosphere

A look at the best of the Internet, from an SPP point of view

Study shows how we can thrive in retirement
As we have been learning, there’s more to retirement than the math of it. While having sufficient income is obviously key, there are health and activity benchmarks we should all be aiming for in our drive to thrive.

A recent study by The Wellesley Institute in Toronto, titled Thriving in the City: A Framework for Income and Health in Retirement sheds some important light on the topic.

As a start, the study notes, we need to be eating well. “Nutrition significantly influences older adults’ general health and well-being, affecting sensory functions, cognitive abilities, and chronic disease risk,” the study notes. “Older adults are at particular risk of inadequate diet and malnutrition,” the report adds.

Next, housing must be adequate and safe, and needs to be affordable, “meaning it costs less than 30 per cent of a household’s pre-tax income.”

The study also looks at physical activity, and supports the Health Canada guideline of 150 minutes of “moderate to vigorous” activity per week for those over age 65. Exercise, the report adds, should include muscle and bone strength-related exercise twice a week.

The research found that while Canadians all have basic health coverage, not all seniors have adequate coverage for “high need” drugs, vision and dental coverage. “Healthy and independent aging,” the study notes, “may involve significant costs,” particularly when privately-delivered care is factored into the equation.

Another key area the research looked at was socialization – the need to spend time with friends and family. “Older adults who engage in social activities frequently (at least weekly) are more likely to report having good health and are less likely to report feeling lonely or dissatisfied with their lives,” the study notes.

So while government retirement programs generally provide a good income for older Canadians, focus must be placed on non-financial aspects of retirement as well, the study states. “If the goal of the retirement income system is to help Canadians maintain an adequate level of income to thrive in their retirement, we need a different approach to the retirement income system and other policies,” the study suggests.

Remember that much can be done in advance of retirement on the savings side. The Saskatchewan Pension Plan offers an end-to-end program that can turn your savings into future income. That can certainly help you with at least one part of a thriving retirement down the line.

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

 

Consider volunteering to perk up life after work

Did you know that 47 per cent of Canadians volunteer their time to help others, donating an incredible 2 billion hours of work?

Those figures are a bit old, from Statistics Canada in 2010, but that volunteer work constitutes “the equivalent of 1.1 million full-time jobs,” Sector Source reports.

While seniors donate the most volunteer hours of any age group, “only 36 per cent of seniors volunteer, compared to 50 per cent of other age groups,” reports the Globe and Mail.

“Volunteering in retirement has an amazing mutual benefit: The organization receives free contributions from someone with a lifetime of experience and wisdom, while retirees get a positive transition from their paid working careers,” the Globe article notes. “There’s also intellectual stimulation (beyond Sudoku puzzles), connection to social networks (so you don’t drive your family crazy with all that time on your hands), enhanced health and quality of life (when not traveling to all those exotic destinations), and a sense of purpose (aside from getting your golf handicap down).”

What do the senior volunteers get out of it? Mark Miller, a stroke survivor, wants to help others in the same boat. “I’m a volunteer facilitator with Heart & Stroke’s Living with Stroke program. I want to help stroke survivors make positive changes and move forward with their lives,” he states on the Heart and Stroke Canada website.

Retirees, notes US News and World Report, “have the most discretionary time” to be volunteers. “They have almost twice as much time as working parents in their 30s or 40s,” the article adds. “They feel that giving back to society means they make a difference in the lives of others. Some 70 per cent of retirees also say being generous provides a significant source of happiness.”

Seniors have skills and talents that are increasingly in demand. A look at the Senior Toronto website shows volunteer help wanted ads for Associated Senior Executives of Canada, Inc., Big Brothers and Big Sisters, Charity Village and Habitat for Humanity, Greater Toronto Area, to name but a few from a very long list.

This blogger has volunteered over the years with the United Way, the Salvation Army kettle drive and the Royal Canadian Legion poppy campaign.

So if you’ve reached the end of your working days, and are feeling a little isolated and in need of something to do, consider volunteering. You’ll be glad you did.

If you’re still saving up for life after work, don’t forget to check out the Saskatchewan Pension Plan’s efficient, well-run and effective retirement system.

 

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

Oct 15: Best from the blogosphere

A look at the best of the Internet, from an SPP point of view

Boomer pension crisis is “here, and it’s real,” says survey
Saving for retirement is a lot like eating your beets. You know they are good for you, all the literature talks up their benefits, and many say you’ll be sorry later in life if you don’t eat them now. But they are not everyone’s cup of tea, and many of us choose to ignore and avoid them.

Unfortunately, retirement is a bigger problem than not eating a beet.

A recent Canadian Payroll Association survey found that 69 per cent of working people surveyed in British Columbia save less than 10 per cent of their earnings, “well below recommended savings levels.” The CPA survey is covered by this ABC Channel 7 news article.

The article goes on to say that 40 per cent of Canadians surveyed are “overwhelmed by debt,” an increase from 35 per cent last year. Debt, the article says, is clearly a factor restricting the average person’s ability to save for retirement.

Research from Royal Bank of Canada that found that 60 per cent of Canadians were concerned “about outliving their savings,” and only 45 per cent of them are confident they’ll have the same standard of living when they retire. This research was covered in an article in Benefits Canada.

So, eat your beets – contribute to a Saskatchewan Pension Plan account and if you are already doing that, consider increasing your contributions each year. You’ll be glad you did down the line.

Many savers using the wrong long-term approach
Let’s face it – whether it’s hanging a new door on the shed, patching a hole in the drywall or growing our own vegetables, many of us prefer to do things ourselves rather than depending on others.

However, when it comes to retirement savings, there are “DIY” mistakes that people tend to make, warns The Motley Fool.

First, the article notes, people tend to avoid riskier investments, like stocks. But over the long term, bonds and fixed income assets “are unlikely to provide a sizeable nest egg in older age,” the article says. The stock market is a good long-term investment, the article notes.

You need bigger long-term returns to outpace inflation, The Motley Fool advises.

Finally, it is important to avoid “short-term” investment thinking; retirement investing is for the long term, the article concludes.

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

 

Top ways to stretch that dollar

Whether you’re saving for retirement or are living on those savings, one thing’s for sure – the more you can stretch your spending dollars, the more you can save.

Save With SPP took a look around the Interweb to see what the experts say about the spending side – or more particularly, ways you can spend less and save more.

The Money Saving Expert blog offers three great ideas to save big. They recommend you quit smoking, try to shop around for cheaper, generic prescription drugs, and to have a “money saving wedding.” They offer tips on “how to get the best value out of your big day, so you don’t spend the rest of your married life paying for it.”

Over at The Simple Dollar blog ideas include shopping for the bank that has the lowest fees and highest interest, watching less TV (and cutting the cord to cable), a great one – “stop collecting and start selling.” Those old collections of trinkets, keepsakes and other clutter creators can be converted into cold, hard cash, the blog advises.

At Clark.com, one idea is one that your humble blogger used to use when paid every two weeks. Since you are getting 26 pay cheques a year, work it so you are living on 24. The other two can be treated as bonuses. The extra money, the blog advises, can be used to “pay off debt, contribute to a retirement account, (be added) to a new car fund,” and more.

Other tips from this blog include shopping for a cheaper cell plan and cutting way back on restaurant meals.

The MyMoneyCoach.ca blog recommends another strategy that we have tried – banking your raises. “You lived on less before… do you really need those extra few dollars?” the blog asks. Use the same budget you had before the raise and bank the difference – and do it again with the next raise.

Other great tips from this blog are using tax refunds to increase your savings and picking one expense to cut out completely. Once you do that, you save the money associated with that single expense. Examples might be a coffee on the way to work, a subscription, and so on.

Life is good, and making it a little less costly is a strategy that will pay you back in the future. And imagine all the extra bucks you will be able to direct to 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

How can our behaviour affect our longevity?

Retirement isn’t always a money thing. There’s mounting evidence that how we behave – the things we do or don’t do – can directly impact how long we live.

Let’s not include dietary matters (most of us obsess about them enough already) in our look for things that add years to our lives.

According to Reader’s Digest, a key behaviour is to de-stress. “Stress and stressors are everywhere,” the magazine notes. “Learning how to manage your stress with guided imagery, meditation, deep breathing or another practice can add years to your life,” states Dr. Michael Roizen in the article.

The Westlake Bay Village Observer notes that quitting smoking by age 30 adds 10 years to your life, and if you quit by age 65, you get three additional years. “Some health benefits are immediate,” the article notes. “Hours after stopping smoking, heart rate and pressure improved,” and within a year, your risk of a heart attack is cut in two.

Then there’s fitness. Cardiovascular Business magazine notes that being fit while middle-aged can extend life significantly. “Middle-aged men with the highest cardio respiratory fitness (CRF) levels live an average of five years longer than peers with age-adjusted CRF in the bottom 5 per cent of the population,” the magazine notes.

Some easier things to do that add up – Woman’s Day reports that flossing your teeth daily will add three to five years to your life, because research shows that “periodontal and cardiovascular disease are linked.” As well, going to bed 15 minutes earlier will add three years to your life, the magazine reports.

Save with SPP has noted, empirically, that cranky people seem to live longer. The Internet provided some backing for this belief, but we couldn’t nail down anything concrete. However, a CBS News report  found that people who “express their anger live two years longer, on average, than those who bottle up their rage.”

Those who don’t blow off steam, the article says, ran the risk of “an elevated pulse, high blood pressure, and other serious ailments.”  If there’s a theme that connects these dots, it is to relax and to not worry. That’s the feeling you can have about your retirement if you sign up with the Saskatchewan Pension Plan – check them out to discover inner peace about retirement saving.

 

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

Oct 1: Best from the blogosphere

A look at the best of the Internet, from an SPP point of view

Canada rises to ninth place in world retirement rankings
Pat yourself on the back, Canada – we’re the ninth-best country in the world to retire in.

Canada has moved up from 11th place to 9th place in the Natixis Investment Managers’ Global Retirement Index, reports MoneySense. Canada moved up a couple of places, the magazine reports, because of “improving economic conditions and environmental factors.”

The index takes into account 18 factors, such as “Finances in Retirement, Material Wellbeing, Quality of Life, and Health,” reports MoneySense. Canada has the “second-highest air quality and seventh-highest personal happiness scores in the entire index,” the article notes. A stronger job market last year pushed our unemployment rate lower, the article adds.

The top five countries were Switzerland, Iceland, Norway, Sweden and New Zealand. The next five were Australia, Ireland, Denmark, Canada, and the Netherlands.

Save with SPP notes that most of the Top 10 countries were hockey-playing country. Coincidence?

The USA, while good at hockey, came in at 16th overall, the magazine notes.

“Precarious” workers have less access to retirement savings: report
A report by the Canadian Centre for Policy Alternatives has found that only 40 per cent of workers in “precarious” jobs have access to retirement savings plans at work. That compares unfavourably, notes an article in Benefits Canada, to the 85 per cent of “secure professionals” who do have access to such plans at work.

The secure professional group, the article says, “was classified as having a full-time, permanent job for at least 30 hours per week, working for one employer that provides benefits and that they expect to be working for in one year’s time.” The “precarious” group, the article states, are either full time without these factors or working part time or contract.

The takeaway is that the so-called “gig” economy often leaves workers without workplace pension plans or retirement savings benefits. They must shoulder their own retirement savings program – easier said than done.

A nice “do-it-yourself” retirement program is the Saskatchewan Pension Plan. You decide how much you’ll contribute, and you can vary your contributions as you see fit over your working life. Check them out at www.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, 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