Rising interest rates herald the return of annuities, guaranteed investment certificates (GICs)

The prolonged period of low interest rates we have been experiencing up until recently sort of took the bloom off the rose for interest-related investing, such as via GICs and their income-producing cousin, the annuity.

But, writes Rob Carrick in the Globe & Mail, the current rising interest-rate environment may give these old investment friends a new lease on life.

“Annuities are insurance contracts where you turn a lump sum of money over to an insurance company in exchange for a guaranteed stream of monthly income for as long as you live. In a world where a majority of workers do not have pensions, annuities address the fear of running out of money,” he writes.

Higher interest rates are great news for annuity buyers, because the higher rate means your annuity will provide a higher monthly payment.

“The improvements in monthly income from annuities over the past 12 months can be seen in the following examples of $100,000 annuities in a registered account, with payments guaranteed to last 10 years even if you die sooner (the money would go to your estate or beneficiaries),” the article notes. Data, the article tells us, was supplied by “ Rino Racanelli, an insurance adviser who specializes in annuities.”

Improvements for annuity income on $100,000 over just the pay year are quite impressive, the article notes. A 65-year-old woman would now get “$550.88 a month, up 15 per cent from $478.90 12 months ago,” Carrick writes. For men aged 65, it’s a jump to $589.75 a month, “up 15.6 per cent from $510.10 12 months ago.”

Carrick writes that some folks shy away from annuities because you have to give up a large lump sum to get the monthly payment. “Solution,” he writes, is to “use an annuity for just part of your retirement income.”

Racanelli tells the Globe that “interest in annuities has increased lately, but some people are waiting for higher rates to lock money in.”

The GIC was a “go-to” investment for boomer parents back in the 1970s and 1980s, when interest rates were in the teens.

“As of the end of June, GIC rates were as high as 4.15 per cent for a one-year term and five per cent for five years,” he writes.

With a GIC, your money is locked up for the term of the contract, typically, one, two, three, four or five years. You receive regular interest payments which compound, typically monthly, so your GIC can really only go up in value. Few people looked at the GIC when they only offered one or two per cent interest rates, but they are now becoming more popular, the article suggests.

Did you know that the Saskatchewan Pension Plan offers a variety of annuity options for retiring members? According to the Retirement Guide, you can choose either a life only annuity (pays you for life, no survivor or death benefits), a refund life annuity (life income for you, but there can be a payout to survivors if you die before receiving your total annuity purchase amount) and a joint and last survivor annuity – lifetime income for you, and lifetime survivor pension to your surviving spouse upon your death.

Annuities may make sense for some of your money at retirement – you’ll get a lifetime income stream and can choose options to look after your survivors. It’s just another way the SPP provides its members with retirement security.

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Darren Mitchell’s Be the Bank chronicles the author’s efforts to find a way for the average Jane or Joe to “control and compound” their wealth, in the way that banks and wealthy Canadians do.

The book’s story starts back in 2008, when Mitchell was a financial advisor. When the markets crashed, he was on an Alaskan fishing trip, trying to keep track of the carnage via cell phone. “It was sickening,” he writes. “There was nothing I could do… that’s when I realized that everything I knew about money was wrong.”

He wanted to find out why financial institutions and the wealthy got through market downturns fine, while those of us in the middle class coped with losses. He found that “the actions the wealthy took with their assets were the exact opposite of what the middle class did.”

Conventional investing in such things as registered retirement savings plans, registered education savings plans and tax free savings account are, the author suggests, very limited, with little control for the investor.

“Banks and Wall Street are in control. You roll the dice. You hope it all works out when you reach the top.” But, he writes, you need to face “retirement risks” such as taxes, inflation, “the possibility of long-term care,” volatile markets and fluctuating interest rates. “And,” he writes, there is also “the most significant risk of all: longevity.”

He looks at the conventional wisdom of withdrawal rates from investments that are based on 50 per cent stocks and 50 per cent bonds. He calls decumulation rates “the Monte Carlo process,” since you are taking money out of a fund without being able to predict how the fund will perform in the future. It’s a guess.

If you withdraw four per cent per year, Mitchell writes, you have a 57 per cent chance of outliving your money. If you withdraw three per cent, you still have a 24 per cent chance, he explains. “Is that how you want to live the rest of your life – in fear that you’ll run out of money, and with the real possibility that it’s exactly what will happen,” he asks.

After a look at the pros and cons of conventional investing, we come to the meat of the book. In Chapter 7, Mitchell says there is a solution that has been out there “for over one hundred years” that allows you to overcome most investment and decumulation risks – “a specially designed, dividend-paying, high-cash-value life insurance contract with a mutual company or participating whole life fund.”

Such products do come with “some death benefit” but “our focus is the cash value,” he explains. “Fewer than one per cent of life insurance policies sold in Canada are designed this way,” he adds.

Such products pay out steady dividends, he writes, with charts backing him up. Thanks to government regulations, such products charge very low management fees, usually lower than 0.18 per cent.

The longer you live, the more you get out of the product, so there is actually a longevity gain, Mitchell writes. Your growth, which after a few years “should be between 3.5 per cent and 5.5 per cent per month,” is tax -free and exempt from most conventional barriers to wealth accumulation, Mitchell explains. You can also borrow against your holdings to make a purchase, and since you are effectively the bank, you can decide when or if to pay the money back.

Mitchell’s book takes a look at annuities as a way to avoid market volatility.

“Think of an annuity like a government worker’s pension plan. They have a lifetime pension coming in every month until the day they die – guaranteed,” he says. And as well, he notes, an annuity addresses “the biggest retirement risk we will ever face… longevity. No matter how long you live, you will get paid,” he explains.

This book covers a lot of ground and it is hard to do justice to it in a short book review. But if you are looking for information on a different way to grow your personal wealth, via an insurance industry product, it’s worth having a look.

Annuities are becoming a better buy these days, since higher interest rates actually work in your favour, and give you more annuity income for the same purchasing dollar. Did you know that the Saskatchewan Pension Plan offers a variety of different annuity options for its retiring members? Check out SPP today for more details.

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Even if you have zero saved for retirement, these steps will get you started

One of the findings of a recent survey from the Healthcare of Ontario Pension Plan (HOOPP) was that “32 per cent of working Canadians said they have yet to save anything for retirement.”

South of the border, reports GoBankingRates via Yahoo! Finance, the situation is similar, with 23 per cent of Americans having saved nothing for retirement, and “25 per cent of Americans between 45 and 55 years old” not having even started saving.

Like dieting and going to the gym more often, saving for retirement is something we know is good for us but is easy to avoid doing. GoBankingRates offers a few ways to fire up your own personal retirement savings program.

The first step is to start budgeting, the article notes. “When payday comes around, it’s tempting to pay for immediate expenses, such as rent and groceries, and use the rest of that money for spending and splurging. Instead, you should consider budgeting,” the article urges. “By setting aside a little money every month towards retirement, you will be able to enjoy that money in the future,” states Jay Zigmont of Live, Learn Plan in the article.

Next, the article continues, is addressing your debt load.

“Debt is a frustrating thing to have, but the sooner you are able to eliminate it, the more money you will have for saving for retirement, investing and spending,” the article tells us. This is a very valid point. Next time you get your credit card bill, see how much interest you were charged on the balance over the last month. That amount could go to savings if you were able to pay off the card.

To target your debt, the article advises you to first be sure to make at least the minimum payment on all debts. They then advise that you put any extra money you can on the debt with the highest interest rate. Once that one’s gone, add what you were paying on high-interest debt 1 to high-interest debt 2, and repeat until you are debtless.

A third idea in the article is goal-setting for savings.

“Make sure you know why you are saving,” Zigmont states in the article. “What do you want your retirement to look like? What are you willing to give up to get there? What is the dollar number you need to hit to retire? When do you want to do it by?”

If you want, for example, to have $20,000 in savings for 20 years of retirement, a target might be $400,000. For simplicity, we are not talking about interest rates and investment returns in this example, but both can help you get there.

Other ideas from GoBankingRate include investing your savings, rather than putting it all in a savings account. “Follow the general rule of only investing in things you understand,” Zigmont states in the article. “Take the time to learn what your options are and be sure to understand both what you are investing in.” In Canada, your choices include workplace pension plans, the Saskatchewan Pension Plan, registered retirement savings plans (RRSPs), Tax Free Savings Accounts (TFSAs) and plain old cash trading accounts. Be sure you know the limits and rules for each type of investment vehicle.

The final advice in the article is to “take ownership” of retirement. “The key to retirement is making it your own,” the article concludes. Do you want to fully retire, or move to part-time work? Having an idea of what your own retirement will be like will help guide your savings plan, the article concludes.

Over many years of reviewing books for Save with SPP, there was one piece of advice that really stood out, and actually worked for us when money was tight. That idea was to put aside five per cent off your pay for savings right off the top, and then live on the rest.

A barrier to savings is the feeling that you won’t have anything left over after bills and groceries. But if you take five per cent off the top, and put it somewhere where you can’t get at it to spend, you’ll be amazed how quickly the savings start to add up, and how little you miss the five per cent (eventually).

A safe and secure cookie jar for your newfound savings is available through SPP.

With SPP, you can stash away up to $7,000 per year in a locked-in, voluntary defined contribution plan. “Locked-in” means you can’t raid your savings for non-retirement expenses; you can only access the money once you reach retirement age. And during that run up, your money will be invested professionally and at a low cost. SPP is a sensible savings option available to any Canadian with RRSP room; check them out today!

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We understand what saving for retirement means. But do people ever take the time to look ahead and imagine what retirement will actually look like?

Save with SPP took a look around the Interweb to see what people are saying about the unknown destination that is the end of work.  Writing in the Retire Happy blog, Wayne Rothe observes that while we are working, “we’ve earned good incomes and we’re used to spending lavishly. We wanted something, we bought it. We’ve lived in lovely houses, driven nice cars, taken great vacations and spoiled our children.”  They haven’t – or have not yet – thought about life after the workforce, he adds. “As a financial planner and a baby boomer, I know the sorry state of retirement expectations and retirement preparedness for many of my generation. I read lots on this topic and boomers have high retirement expectations but are on track to fall far short of their goals.”

OK, goals – but what are those goals?

The Canadian Budget Binder blog notes that when asked what “do you want your retirement lifestyle to look like,” the answer was not top of mind.

“We both blankly stared at each other and said, `I don’t know,’” reports the blog. “We didn’t know but what we did know was that we had to keep socking away money to max out our retirement savings for future reasons.”

“Depending on who you ask their retirement lifestyle might be painted as, resort-type community living (retirement villages), lavish holidays, mini-trips, restaurants, activities and organizations outside of the home,” the blog notes. “Others might be happy living a simple life in an apartment or their home hopefully mortgage free although for many reaching retirement years that’s not even happening.”

The blog sees being debt-free as a key to being able to leave the workforce.

Other ideas, according to the New Retirement blog are to “do the things that keep you happy,” be they little projects around the house or learning something new.

“You can make a difference to your own loved ones or volunteer and change lives in the community,” the blog continues. Other ideas outlined in the blog include travel, becoming an entrepreneur, being able to get away in the winter, gardening, writing, downsizing and being a consultant.

What we found – or more precisely, didn’t find – was an article that lists what the average person wants their retirement to look like. Thinking about this, that’s probably because those of us still working – a very structured thing, where you show up at a set time and do a task for so many hours a week, all for pay – can’t yet see what an open week, month, or year on a calendar might look like.

So the takeaway is that retirement, unlike work, is 100 per cent dependent on you and your own personal want list. No one is going to set out a retirement lifestyle for you, you have to establish your own. So developing a set of retirement goals – things you want to do when work is a memory – is, in a way, as important as the age-old idea of putting away some money to help you do it.

A nice way to save for retirement is through the Saskatchewan Pension Plan. This unique, end-to-end retirement program is open to any Canadian who has registered retirement savings plan room. And if you don’t have a pension plan at work, SPP can help fill that gap.  SPP will invest your savings at a very low cost, and when it is time to tick off boxes on your retirement to-do list, will convert those savings into income, including the possibility of a lifetime monthly annuity. Check out SPP today.

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HOOPP research shows saving for retirement is a struggle for most

New research from the Healthcare of Ontario Pension Plan (HOOPP) finds that while Canadians view retirement savings as a priority, few are able to do much about it.

A media release from HOOPP outlines some of the key findings of the research, carried out for HOOPP by Abacus Data.

“Saving for retirement is the number two priority amongst Canadians, with 53 per cent citing it (affording the day to day was number one, at 62 per cent), but many are struggling to accomplish it. Thirty-two per cent of working Canadians said they have yet to save anything for retirement, and 38 per cent said they have saved nothing for retirement in the past year,” notes the release. 

So, how are people planning to pay for their retirement, if they aren’t saving?

The research found that “nearly half of Canadian homeowners are planning to rely on the sale of a home to set themselves up for retirement (45 per cent), but that plan is becoming increasingly risky in the current environment,” HOOPP reports.

“The general outlook for retirement security in Canada is darkening,” states David Coletto, CEO of Abacus Data, in the release. “Seventy-five per cent of all Canadians agree there is an emerging retirement crisis in Canada and 72 per cent feel that saving for retirement is prohibitively expensive — both up seven points over last year. And if current trends continue, it will be tougher for younger generations.”

David Coletto spoke to Save with SPP a couple of years ago on the issue of millennials and retirement saving.

So if, as the research suggests, the price of housing is so high that there’s no way to get into real estate while also saving for retirement, what’s the solution?

HOOPP’s Senior Vice President of Plan Operations, Steven McCormick, states in the release that the answer may be wider access to workplace pensions.

“Savings challenges are more acute for younger adults, but there is an agreement across generations that an important solution to the problem is better workplace retirement savings plans, and that everyone has a role to play on this front,” states McCormick in the article.

The release notes three interesting findings from the research:

• 82 per cent of Canadians agreed that all workers should have access to a pension that guarantees a percentage of their working income in retirement. Sixty-six per cent are willing to pay for this access themselves by accepting a slightly lower salary in exchange for a better (or any) pension.
• 77 per cent agreed that all employers should be required to contribute in some way towards pensions for all workers, and 74 per cent agree governments could save money by supporting pensions that are more efficient.
• 83 per cent agreed that without good pension plans at work, many Canadian seniors will experience poverty and 77 per cent said workers without pensions will become a burden on the taxpayer. 

HOOPP has long been an advocate for retirement income security, and their latest round of research clearly shows that the problem of having enough to live on in retirement is not one that is going away.

If you don’t have a workplace pension plan – and are one of the majority of Canadians who want access to one – take a look at the Saskatchewan Pension Plan, which is open to any Canadian with registered retirement savings plan room.

SPP offers a voluntary defined contribution plan – the money you contribute is pooled for investment efficiency, professionally invested, and – at retirement – can be converted to retirement income, including the option of a lifetime annuity. SPP has been delivering retirement security since 1986. Check them out today.

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We’re living through some very weird times. First we get a pandemic that keeps many of us from working for an extended period of time, and the rest of us with nothing to spend our money on. Now we’re facing crazy inflation that is making even routine purchases very expensive.

Are there any tricky ways to put away a few bucks for retirement out there? Save with SPP decided to seek out a few new tricks – ideally ones we haven’t covered off before.

A GoBankingRates article posted on Yahoo! offers up 42 savings tricks.

One is to watch the fees in your retirement savings accounts, the article suggests. Here in Canada, this would be in registered retirement savings plans – RRSPs – or Tax-Free Savings Accounts, TFSAs. Do you have mutual funds that charge a high fee, say two per cent or even more? Maybe you can switch to a lower-fee exchange traded fund (ETF). Other ideas include renting out a spare room or an unused garage for extra savings cash, “shopping around” for the best possible insurance rate, and the idea of “putting every tax refund into savings.”

“It’s tempting to use the extra money from your tax refund on a new toy or vacation,” the article states. “But these spurts of cash provide the perfect opportunities to give your retirement savings a big boost.”

The My Money Coach blog has some great ideas, including freeing up money for savings by paying attention to your pre-retirement cash flow.

“A very important key to saving for retirement in Canada – that many have lost sight of – is to earn more than you spend,” the blog explains.

If you are following a budget and still have little room for savings, the blog continues, “the next thing to do is to up your income. You can ask for a raise at work, or you can apply for a job that offers a higher pay and better benefits. You can also pick up extra shifts or take on a second job during the weekends or evenings, if your schedule allows it.”

Other ideas to boost cash flow (and create more savings) are “a side business or freelancing,” the blog notes. “Capitalize on one of your passions and see where it takes you.”

From the Union Bank of Switzerland (UBS) site comes a little bit of savings psychology advice.  “Try this little trick to motivate yourself,” the site suggests. Simply change the name of your savings solution. Seeing “My world trip,” “Better living” or “Playa del Carmen 2030” every time you log into… e-banking or (a) mobile banking app will remind you of your big dream, and give your motivation a boost,” states Daniel Bregenzer of UBS.

Other tips from UBS include making it “harder” to access your savings account so the temptation to spend it is lessened, “like keeping a box of chocolates out of sight,” and making savings an automatic habit.

Save with SPP can add a couple more.  First, if you get a cash gift card – say it’s issued as a rebate on a purchase of tires, or contact lenses, or whatever – did you know that you can use that gift card to make contributions to your Saskatchewan Pension Plan account? SPP allows you to make credit card contributions, and we have used gift cards quite a few times over the years. Here’s the page where credit card contributions can be made.

And, if you have a cashback card, what better place for the cash than your retirement savings plan – just set up SPP as a bill payment on your bank website or app, and when the cash is deposited, contribute it.

Whatever way you can wring a few extra bucks out of your living costs will work, and your future self will greatly enjoy the work your current self has put in!

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Is inflation throwing a wrench in peoples’ retirement plans?

An article from Kelowna, B.C.’s Castanet site suggests that inflation is making older Canadians hit the pause button on their retirement plans.

The article cites a study commissioned by Bromwich+Smith and Advisorsavvy that found “54 per cent of older Canadians have put off retirement this year because of increases in the cost of living.”

Other results from the study, administered by polling firm Angus Reid, were equally eye-opening.

Four in 10 older Canadians “have delayed, or plan to delay, their retirement because they have too much debt, while 62 per cent have delayed retirement because they don’t have enough savings or investments,” the article notes.

And there are other reasons for delaying retirement, the survey found.

Twenty-six per cent said they are still supporting adult children. Twenty-three per cent “love my job too much to quit,” the article reports, with 21 per cent not wanting to retire due to the still with us (but hopefully going away) COVID-19 pandemic, Castanet reports.

Other reasons for delaying retirement including taking care of a spouse (13 per cent) or other family member (10 per cent), the article notes.

“Canadians are all feeling a bit exhausted from the last two years, between multiple waves of COVID-19 and a tattered economy,” states Laurie Campbell of Bromwich+Smith in the article. “For those close to retirement, 2022 might seem like the best year to do so. But with inflation still high and bank accounts and retirement savings being depleted, it might be wise to ask yourself, can I retire in 2022?”

Perhaps the most alarming stat in the article is this one – “63 per cent of survey respondents were worried about never being able to retire.”

Other concerns were the fear of running out of money in retirement (71 per cent), as well as the worry of having to go back to work after retirement (24 per cent).

“The results of the survey are somewhat dispiriting,” states Advisorsavvy founder Solomon Amos in the article. “There have been economic shocks throughout time, but the last couple years have tested many people, and put the importance of proper retirement planning into plain view.”

Finally, while “almost a quarter” of Canadians surveyed hope their homes will fund part of their retirement, those homes are now carrying quite a cost due to the combination of already-high home prices and rising mortgage rates. Twenty per cent of those surveyed (aged 18 to 34) are spending “50 to 74 per cent of their income on mortgage payments alone.”

If you don’t have a retirement program at work, it’s up to you to save for your retirement – and that can be difficult when the cost of everything seems to be going up. But there’s a solution.

The Saskatchewan Pension Plan is a full service defined contribution pension plan that’s open to every Canadian with registered retirement savings plan room. You can arrange to make pre-authorized contributions to SPP, perhaps coinciding with your payday, so that you are paying your future self first.

SPP will invest those savings for you in a pooled fund, professionally managed at a low cost. And if you are worried about running out of money when you retire, SPP gives you the option of receiving a lifetime monthly annuity payment from some or all of your SPP savings.

If you know you should be doing something about retirement savings, but haven’t had the time, get in touch with SPP and they will help you get going on a program tailored to your requirements.

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“Debt,” begins Michael Steven in his book Getting Out of Debt, “is more than just a weight on your shoulders that causes stress and financial strain, it is a manacle that holds you back from achieving your dreams and becoming the best version of yourself.”

There are, he continues, “good debts and bad debts. Unfortunately, most people take on bad debts, either because they lack information or have competing priorities in life.”

There are a number of factors that can cause us to fall into debt, Steven writes. Loss of a job or reduction of income, a divorce, “poor money management skills,” underemployment, gambling and other factors usually are to blame.

There are also psychological issues behind debt, Steven notes.

“We also tend to define wealth from the standpoint of material possession. However, true and real success is being free from debt. Unfortunately, most people incur debt to purchase goods that depreciate in value and do not generate additional income. The desire to acquire certain social status drives people to make irrational financial decisions that eat into their future income and denies them the ability to invest in wealth creation.”

The Coles notes version of this important thought is that if we want toys to show off that we can’t really afford, we will burden ourselves with debt and rob our future selves of savings.

After reviewing the psychological impacts of debt – anger, regret, dread, shame, and so on – Steven looks at how to get out, and stay out, of the red ink.

First, he writes, you need to know “where you currently stand financially.” Figuring out your net worth – what you have minus what you owe – is a good first step.

Next, set goals for debt reduction. “Your goals should be realistic so they feel attainable, but aggressive enough to get you out of your comfort zone,” he writes. A budget is also a must, he writes.

The harder steps include controlling your expenditures – to “stave off the behaviours that initially got you into to debt,” and to control costs by cutting back on dining out, unused memberships, streaming services and subscriptions. Cut where you can, he advises.

Build an emergency fund, he recommends, so you don’t have to depend on credit for unforeseen expenses. As well, he writes, make saving a habit.

“If I told you saving is easy, I would be lying,” he writes. “Saving requires discipline, a habit you build over time. It can be hard to save instead of spend, but if you have to attain financial freedom, then saving is one of those things you will have to embrace.”

There’s a handy chapter on how to negotiate debts with your creditors, and a comparison of the main debt reduction strategies. With the “snowball” strategy, you start by paying extra on your smallest debt, and then when that is paid off, you add what you were paying on the smallest debt to the next smallest. The “avalanche” uses the same principles but starts with the highest debt first.

Once you have debt under control, you will have achieved the important state of financial discipline. “The main cause of financial problems is a lack of financial discipline and self-control,” he writes. “Therefore, achieving financial discipline should start with rewiring the mind and your perceptions about money. Start linking happiness to saving, investing, being debt free and having a good emergency fund that you can fall back on when things get tough.”

Stevens makes another key point late in the book – the fact that debt can restrict your retirement savings.

“It is highly likely that you slowed down or halted retirement contributions while paying off debt. Now that you are debt-free, though, you should work on building your retirement contributions…. always increase your retirement contributions as your income increases.”

He notes that paying off debt is a great accomplishment, but avoiding slipping back into debt requires the same discipline needed to pay it off. Boost your monthly savings once debt is gone, he suggests. “Target” your savings – save up for a trip, and pay for its costs only from that fund. Think before you spend – a used car may be better than brand new, a simpler wedding will help you avoid bringing debt on the honeymoon. You generally need to try and live within your means – meaning, spend less than you earn.

This is a helpful book and well worth a read. We have always felt that getting out of debt is very similar to losing weight – it’s an effort to lose the pounds and even more difficult to keep them off after you’ve succeeded. But in the long run it is good for you.

A good destination, post-debt, for your retirement savings is the Saskatchewan Pension Plan, available to all Canadians with registered retirement savings plan (RRSP) room. With SPP, you get professional investing – a good thing to have in these volatile markets – at a low cost; your savings are pooled with those of other members to keep investing costs low. SPP will grow your savings and help your convert them into retirement income at the appropriate time. Find out more about SPP today!

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Things to start getting rid of before retiring

An article by Gabrielle Olya, writing for GoBankingRates via Yahoo! Finance, notes that when we retire, we tend to downsize, both in terms of our living space and – for nearly all of us – our income.

Her article identifies 25 things we can sell prior to retiring, in light of the twin truths that we may not only be living in smaller quarters, but with less income.

First, she suggests, is your home. By selling off your current abode, “you can use the funds to buy a smaller place or put the money toward rent and deposit any leftover money into savings. Downsizing your home can not only save you money, but it also can save time and effort because you have a smaller property to maintain.”

You won’t, she continues, need your fancy work clothes anymore, and may be able to get some dollars for them at a consignment shop. With more time and workout options at hand, maybe the home gym equipment can be sold off as well, Olya writes.

Another area for downsizing is the garage, she notes. “Even if you’re done paying off your car, it can still be a major expense between gas, insurance, maintenance and repairs. If you and your partner each own a car, consider selling one of them. Even if you only have one car, it might be cheaper to sell it and get around using rideshare services or public transportation.”

Consider, Olya suggests, selling off “bulky furniture” if you are moving to a smaller place; this can be done easily via Facebook Marketplace or Kijijii, or you can go “old school” and sell via consignment shops.

Other things the article mentions that can be sold off include holiday decorations, old computers (that still may be worth something), old kids’ toys that your adult children (or their kids) don’t want or need, the book collection, and, notably “collectibles and antiques.”

“Like books, collectibles and antiques can take up a lot of space that you might no longer have if you downsize your home. It’s fine to hold onto a few things with sentimental value, but assess whether these items would be worth more to you if you turned them into cash for your retirement savings,” writes Olya.

For years, Save with SPP had a large collection of boxed items that made the move, years ago, from Barrie to Waterloo, and on to Toronto and finally Ottawa. When we finally had time to open all the boxes up, we found it was mainly keepsakes and low-value collectibles that mostly ended up at Value Village. So take inventory of what you have boxed up in the basement, and see if any of it has resale value or can be gently donated. Your future you will thank you.

The money you save through this process will give you more spending power in retirement. And if you trim back on things before retirement, this newfound money can form – as the article says – a part of your long-term retirement savings. If you’re a Canadian with registered retirement savings plan (RRSP) room, consider the Saskatchewan Pension Plan (SPP), a voluntary defined contribution plan that may be just what you’re looking for to help you save. You can contribute up to $7,000 a year to SPP, and can also transfer up to $10,000 annually from other RRSPs. Check out this made-in-Saskatchewan solution today!

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By now, any of us who drive a gas-powered vehicle are experts in what inflation means. It’s when something that cost $60 in the winter costs $100 five months later.

Are there any tactics we can employ to help spending our hard-earned/hard-saved dollars more effectively during this crazy period of runaway prices? Save with SPP took a look around to see.

An article from Global News discusses the plight of mostly retired Mike and Marylou Cyr of Campbell River, B.C.

They are, the article notes, living on a fixed income consisting of workplace pensions and government benefits (the Canada Pension Plan and Old Age Security), Mike is still working a little. The couple looked first at reducing the costs of their insurance premiums, and switching to a cheaper telecom plan, the network reports.

With gas prices jumping $50 a tankful, the couple is now planning to sell off one of their vehicles and sharing the other, Global tells us. The other big jump for their spending is food, which has gone up more than $100 a month already, the article reports.  “I am very concerned with the inflation, the rising food costs, as well as the rising gas costs. I think those are two main things,” states Marylou Cyr in the article.

So to fight that, the Cyrs are growing their own veggies and have four laying hens to supply their own eggs, the article says.  “Maybe I’ll start canning again like our parents and grandparents did and store everything for the winter,” she tells Global. “If I could get a cow in the yard, I might do that, but I can’t.”

OK – trim insurance, telecom, go to one car, and grow your own food. Run some cattle if you can. What else can a person do?

According to CTV News, there are other ways to save on food. The network says folks are trying to buy grocery items that are on sale, buying items you use regularly in bulk, and targeting the groceries you use up rather than those you often throw out are good approaches.

Another way to save is through pooling costs, states University of Saskatchewan associate professor Stuart Smyth in the CTV report. “For example, (if) you’re buying 20 pounds of meat, but you’re splitting that up between three to four households, you’re saving some money that way,” he tells CTV. He underlines the importance of being a little more selective in shopping – target items that you tend to fully consume, rather than those you wind up throwing out. (An example in the Save with SPP home is yogurt; we always buy some because it is supposed to be good for us, and then almost never eat any before it expires.)

In addition to gas and food, other categories of consumer goods have been affected mightily by inflation, reports the Globe and Mail.

Meat is up 10.5 per cent versus 2021, and surprisingly, meat alternatives “like faux burger patties or plant-based ‘chicken’ nuggets” are 38 per cent more expensive than meat, the Globe notes.

Household appliances are up 23 per cent over the last two years, the article continues, and buying a typical soup and sandwich lunch “costs nearly $18 on average, up 24 per cent.” Other items that are particularly impacted by inflation include the cost of new homes and of housing in general.

We can’t fully protect ourselves from inflation. Following some of the steps outlined in these reports will at least help trim your spending.

Tips from Save with SPP’s own experience include shopping for clothes at consignment stores – you always pay less than at retail stores – and trying to brown bag lunch rather than having that $18 soup and sandwich. Friends like making fun of our $4 sand wedge from Value Village, but it gets us out of the bunkers right enough. All of these steps can help you save a few dollars, perhaps even enough to put away for retirement.

It’s interesting to read associate professor Smyth’s description of pooling purchases of meat. The same concept of “pooling” is a key way that the Saskatchewan Pension Plan reduces investment costs for its members. If you buy a stock on your own, there’s a fee for buying it and later, a fee for selling it. There might also have been annual fees to maintain your account. With SPP, you pool your savings with those of others in one big fund. That lowers the management costs to less than one per cent. It’s a great way to save on the cost of investment management, and SPP has an outstanding track record of steady investment returns. Check out SPP – available to all Canadians with RRSP room – today!

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