Aug 27: Best from the blogosphere
August 27, 2018A look at the best of the Internet, from an SPP point of view
Asking the question “what is retirement really like”
Everyone who is working, or frankly, just getting older, eventually wonders what it would be like to be retired. It is very difficult to imagine what “there” looks like.
Save with SPP had a look around to see how people describe the so-called “golden years.” What are they really like?
Forbes magazine recently covered a survey on this topic, and their top three results were quite interesting. Retirees said that “boredom is not a problem.” One retiree said “I have to remember (repeatedly!) that I can’t do everything I want, even in retirement.”
Second on their list was the revelation that retirees “often downsize and cut their living costs – by choice.” The typical survey respondent “is living quite comfortably on about half of his or her pre-retirement income,” the article notes.
Rounding out the top three is the fact that retirement “requires some big adjustments for married couples.” In order to avoid one spouse supervising the other, “me time” is essential, the article notes.
US News and World Report also covered the “what is retirement like” question, and their findings were similar. They found most new retirees want to continue to be active. Citing examples of doing part-time work or managing their own savings, the article says most retirees “would rather continue to be active after they retire from their career than relaxing around the pool all day.”
Retirement, the magazine notes, can be “a difficult transition if you are not prepared for it.” Those who were forced into retirement during the economic downturn of 10 years ago found they had less savings and “a lot of heartburn,” the article adds. Some looked to part time work until more stable economic times returned.
On balance, the article says, having fun in retirement is very important. You can “volunteer, freelance coach, or (do) many other activities,” the article notes. It’s a way to help avoid missing the “structured routine of work,” the article states.
What will your retirement be like? The conclusion is that it’s up to you. Having a plan for retirement savings and for turning those dollars into future income is also a good underpinning for your future life after work. The Saskatchewan Pension Plan can help you on both fronts.
Written by Martin Biefer |
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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 reveals a way to build wealth – conscious spending
August 23, 2018We Canucks keep breaking the wrong kind of record – levels of debt. In fact, one would not be surprised if the phrase “becoming debt free” is starting to appear on people’s bucket lists.
An eye-opening booked called I Will Teach You to Be Rich by Ramit Sethi is a nice addition to your self-help library. Among the many excellent ideas in this book is the notion of “conscious spending.” Sethi writes that becoming wealthy does not mean you must become super-frugal, living as cheaply as you can and buying the lowest cost items possible. Instead, he says it is important to think hard about what you ARE spending money on – conscious spending.
“Frugality alone doesn’t get you to your goals. It’s a helpful but not sufficient condition. So I take another approach of trying to write about money holistically, while urging you to make your own decisions about what’s important enough to spend a lot on, and what’s not,” he writes.
Most of us don’t think before we spend – unconscious spending – he writes. We just put it on the credit card and then hope for the best. A far better approach is to have a “prescriptive budget,” or a spending plan, for the month ahead. Many of us don’t know, he writes, what’s going out in any category – such as subscriptions and membership fees.
“We not only lack a prescriptive budget (“I want to spend 20% on my retirement account, 10% on savings, 20% on going out…”), we even lack a descriptive budget (“where is my money going?”),” he notes.
But the exercise of knowing where you WANT to spend your money in advance of spending it is empowering, he says. You may want to buy lots of shoes, go out a lot, or some other passion. What you want to spend your money on is up to you, there is no standard approach to take, the book notes.
The book is written in a very friendly, informal style – it’s like listening to sound advice on money from a close and trusted friend. It’s a good read with some fresh thinking on a subject that is of growing importance.
Once you’ve moved to a prescriptive budget and are conscious about your spending, don’t forget to make SPP part of your retirement savings plan. Your future you will thank your present you.
Written by Martin Biefer |
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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 |
Aug 20: Best from the blogosphere
August 20, 2018A look at the best of the Internet, from an SPP point of view
Using “behavioural science” to help boost retirement planning
For far too many of us, the words “retirement planning” conjure up a frustrating jumble of spreadsheets, calculations, application forms and sums of money we don’t have. Easier, we think, to change the channel and worry about something else.
Recently the Ontario Securities Commission researched these “barriers to retirement” and came up with a new idea – the use of behavioural science tactics to aid the planning process. The OSC’s research is featured in a recent article in Benefits Canada.
It’s more of a “nudge approach.” One idea the report suggests is scheduling a retirement planning meeting at work. The individual must then choose to opt out of the meeting or just go with the flow and attend, the article notes. Another similar approach is to bring the future closer by showing people a variety of retirement activities and asking them to choose their favourite one.
“Keeping people from being overwhelmed or feeling other negative emotions is also important to the planning process,” the article notes.
One suggestion not touched on in the article might be to make your retirement savings automatic. Rather than rounding up dollars at the RRSP deadline, why not have a pre-set amount deducted each payday? That sort of automated savings approach is possible with the Saskatchewan Pension Plan; check out their website for full details.
A toast to the better days ahead
We’ve all been to lots of retirement parties. Here are some great retirement toasts, courtesy of the Public Speaking Advice blog, that you may be able to make use of at the next “farewell to work” event you attend.
“We don’t know what we’ll do without him but we’re about to find out.”
“May we always part with regret and meet again with pleasure.”
“May the best of happiness honor and fortune keep with you.”
“A bad day at fishing is still better than a good day at work.”
“Here’s to your health and your family’s health. May you live long and prosper.”
That last one has a bit of a Star Trek/Mr. Spock ring to it, doesn’t it?
Written by Martin Biefer |
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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 |
A look at the fascinating world of “extreme couponing”
August 16, 2018On an almost daily basis we are all inundated with coupons – 10 per cent off this, that, and the other – that we sometimes remember to use. But there’s a group of people out there who take part in “extreme couponing,” a gang that seem to have the discipline to make maximum use of this everyday savings tool.
An article in the Globe and Mail describes the world of extreme couponing as “a no-holds-barred pursuit of savings that has earned itself a weekly TV series and countless obsessive Internet followers who strive to maximize their savings at the checkout by spotting the best sales and by hoarding coupons.”
It takes work, the article notes. In the piece, a woman called Aimee Geroux, who has her own blog called Extreme Couponing Mom, says she has walked out of stores with $300 worth of goods that cost her $20 of her own money. She tells the Globe that she totes a binder full of coupons when she goes shopping, but also employs “price matching.” That’s when stores match the sale price from other stores – you get a lower price if you can show the flyer, the article notes. Another trick is the “scanning code of practice,” the article says. If the item’s price on the shelf is more than the scanner says, you can get it for much less, even free, the article notes.
If you don’t feel like cutting coupons out of flyers and newspapers, there are online sites that can save you a lot of trouble. The Balance Every Day blog lists 11 Canadian sites that give you access to savings coupons and other deals.
If you like shopping online, going through the E-bates portal first gives you automatic discounts that are mailed to you by cheque every couple of months.
Like everything else that’s good for you – exercise, proper eating, and balancing the budget – extreme couponing requires commitment. Sue Neal of Investors Group recommends putting all your savings in a fund, the Globe article notes. “Now you can really see the savings you’re making,” Neal said. “It could actually get you more excited about using the coupons.”
It’s also a great way to save some money for retirement. Maybe some of your coupon coinage can be directed to your Saskatchewan Pension Plan account – visit SPP to find out how.
Written by Martin Biefer |
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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 |
Aug 13: Best from the blogosphere
August 13, 2018A look at the best of the Internet, from an SPP point of view
Canadians living longer – here’s how to avoid running out of money
Retirement is about accumulating savings and then “decumulating” them, or living on them for the rest of your life.
While it’s fairly easy to set a savings goal, the harder part is figuring out how long you’ll live, according to a recent article in the Kitchener-Waterloo Record.
“For planning purposes it is advisable to assume a long life,” the article notes, citing Statistics Canada figures showing that Canada’s life expectancy “ranks among the top in the world.” There are 19.4 per cent more folks aged 85-plus as of 2016 versus 2015, the article notes, and in that same period there has been a 41.3 per cent increase in those aged 100 and older.
“The longer the life, the more likely you will run out of money,” the article warns.
There is a nice way around that problem, called a “longevity risk” in the pension business. You can convert some or all of your savings into an annuity. An annuity will guarantee you a payment amount that will be paid each month for the rest of your life. That way, if you live for a century or longer, you’ll still be getting income.
The Saskatchewan Pension Plan offers an interesting variety of annuities, to find out more, check out their retirement guide.
Some selected sayings about retirement
What is it like to be retired? Save with SPP had a look at The Joy of Being Retired blog, and found a few choice comments.
- “Gainfully unemployed – and proud of it too.” Charles Baxter, from Feast of Love
- “The money is no better in retirement but the hours are!” Author unknown
- “Retirement – when you quit working just before your heart does.” Author unknown
- To these, we will add a few we’ve heard:
- “I know I ain’t doing much – doing nothing means a lot to me.” Bon Scott, AC/DC singer
- “I will be fully retired when the mortgage is.” Anonymous SPP blogger
- “The older I get, the better I used to be.” Golfer Lee Trevino
Written by Martin Biefer |
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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 the pros can tell us about managing money better
August 9, 2018We all want to be great managers of our money. And the road to great money management must be paved with good intentions. But the “shiny objects” of life distract us from running a tight fiscal ship, so we mostly see a lot more money going out than staying in. Debts mount and the piggy bank remains defiantly empty.
So what are the experts doing that we aren’t? Save with SPP scoured the web to try and find out.
From the Real Simple blog, money management tips include paying bills on time – even tiny bills – and using cheaper, lower-fee online banks.
Time magazine stresses the importance of patience and discipline. “Don’t make major money-related decisions in a hurry or at a time of great emotional stress, such as when the stock markets tank or soon after a loved one has died,” Time advises. Take time to breathe, the magazine suggests.
At the Titan’s Lair blogspot a key bit of advice is “knowing where your money goes.” With a budget, you know where every dollar is going, and that knowledge gives you the power to make savings, the blog advises. Budgeting, the blog adds, helps you stay out of debt and the related pitfalls of high fees and compound interest. As well, it will leave room for retirement saving. “Saving now and managing your money correctly will definitely benefit you in the long run,” the blog advises.
Noted financial guru Suze Orman, quoted on the Mint.com blog, says a key tactic is to “take a hard look” at finances, and to avoid making excuses for what’s not going right. It is important, she notes, to separate what people want from what they need. That will “cut the fat” out of their financial problems, the article states.
So to recap all this advice – don’t let unpaid bills pile up. Pay attention to fees. Take your time with major money decisions. Be aware of where every nickel of your money is going, and cut the fat where you can. Be realistic and separate needs from wants.
Following this more self-disciplined approach will help you tackle any debt you may be carrying, and will free up money for retirement savings. And as we all know, a great way to build those savings is by signing up for the Saskatchewan Pension Plan. Your money will grow, the fees are low, the track record is impressive, and there are many ways to turn your savings into a lifetime income stream.
Written by Martin Biefer |
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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 to move to a bigger place without spending money – declutter!
August 2, 2018Isn’t it funny how that new apartment, condo, or house seems to get smaller with each passing year?
It’s not because the place is shrinking – it is usually because of all the stuff you have accumulated. So rather than packing up everything and moving to a bigger, more expensive place, Save with SPP sought out some expert tips on how to save big by decluttering the space you’re already in.
The Becoming Minimalist blog offers some great tips on how to take on the overwhelming task of decluttering.
Decluttering is a financial thing rather than a neatness thing, the blog notes. “The idea of living a simplified, uncluttered life with less stuff sounds attractive to many,” the blog advises. Many have “considered the benefits of owning fewer possessions: less to clean, less debt, less to organize, less stress, more money and energy for their greatest passions,” the blog states. However, the blog continues, the big question is “where in the world do I begin?”
On their list of top approaches to decluttering are giving the job a solid five minutes per day, giving away one item every day, filling one trash bag every day, and “the four-box method.” In every room, the blog notes, place four boxes – one for trash, one for giveaway, one for relocation, and one for keeping.
The Home Storage Solutions blog suggests getting rid of the easiest stuff first, namely garbage, things that are broken or don’t work, duplicates, and “items not used for a year.”
The Life Hack website says clear floors first, then countertops. Move onto furniture last. Again, the advice is “toss, donate, or keep.” To clean a closet, take EVERYTHING out and then go through those same three steps – get rid, give away, or hang on – before you put things back in.
If you find you’ve got a lot of things to give away, why not hold a garage sale? The proceeds from clearing your living space can be tucked away in a Saskatchewan Pension Plan account, invested, and then enjoyed thoroughly in the future when you’ve retired! For more details, visit www.saskpension.com.
Written by Martin Biefer |
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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 |
Jul 30: Best from the blogosphere
July 30, 2018A look at the best of the Internet, from an SPP point of view
No generation is winning at retirement savings: research
You might think that one segment of society – the young, perhaps, or the middle aged, or even the old – would be on top of things with retirement saving.
But research suggests that ALL generations are having a tough time with it. According to recent research from Franklin Templeton Investments Canada – reported by the Canadian Press — all generations “appear to be facing challenges saving for and financing their retirement.”
What are the challenges? The article says longevity – the fact that everyone is living longer – is a big one. Parents of Gen Xers, the article notes, are “living longer and spending more of their money on things like health and travel.” That means there will be less to leave to their kids, the article reports.
Interest rates are the second problem. “Canadians have increasingly large levels of debt which become harder to carry as interest rates rise,” the article quotes Franklin Templeton Canada’s Matthew Williams as saying. More expensive debt repayment means less money for saving, the article suggests.
Finally, many of us just aren’t saving. “A quarter of Canadian Gen Xers haven’t saved anything for retirement,” the article notes. Barriers to saving for them include low income, high living costs, student loans and mortgages, the article reports. But it’s not just Gen Xers who are having problems. A surprising 23 per cent of pre-retiree boomers have saved nothing for retirement, the article states, with that figure rising to 50 per cent among younger millennials.
It’s never too late to start saving for retirement, and no amount is too little. A great way to help fund your retirement is to sign up for the Saskatchewan Pension Plan. If you’re already a member, bump up your contributions a little bit each year. You’ll be happy you did when life after work arrives.
What’s best about being retired?
For most of us, it is almost impossible to visualize what life will be like once we have punched the timeclock for the very last time.
A great blog post by Dave Bernard for US News and World Report breaks it down, listing three chief changes retirees will notice.
First, the post notes, you will finally have time to exercise. Bernard writes that now he can control “when and how” he exercises, rather than having to sneak off to do it at lunch. A second point is the sudden unimportance of weekends – they are just another day when you aren’t working. And finally, he says his creative energy has never been higher. It’s not so bad living on the other side of the fence!
Written by Martin Biefer |
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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 |
Interview with HOOPP’s Darryl Mabini
July 26, 2018Factor high healthcare costs into your retirement savings strategy: HOOPP
One of the biggest problems retirees can face is unexpected, major healthcare costs in retirement – and that possibility should be factored into retirement savings.
So says Darryl Mabini, Senior Director, Growth & Stakeholder Relations for the Healthcare of Ontario Pension Plan (HOOPP). HOOPP is a $77.8-billion public sector defined benefit pension plan serving healthcare workers in Ontario.
HOOPP recently produced a four-paper series called Retirement Security – Is it Attainable? One of the four papers, called Seniors and Poverty – Canada’s Next Crisis found that 12.5 per cent of Canadian seniors – and a startling 28 per cent of senior women – live in poverty.
A factor behind this, the series suggests, is the lack of good workplace pension plans (the defined benefit type, which provides pensions based on a percentage of your earnings, is rare outside the public sector) and inadequate personal retirement savings.
“People saving for retirement don’t factor in the healthcare costs when they get older,” explains Mabini. While Canadians are proud of their universal healthcare system, he notes, they “are not aware of what it doesn’t cover.” Some long-term care costs are not covered by provincial plans and can cost thousands a month, he notes. Treating chronic diseases and illnesses can also be expensive in retirement, particularly if you don’t have health benefits, says Mabini.
So retirement income – having enough of it – is critical. “We found that about 40 per cent of Canadians are covered by a workplace pension plan. For the other 60 per cent, it is do-it-yourself; they are saving on their own,” Mabini says. But doing it on your own is hard – the savings are voluntary, not mandatory, and no one tells you how much you actually need to save to be able to afford retirement, he explains.
“Our research found that the amount people have saved is heavily impacted around age 85, once long-term care costs are factored in,” he says. Those who are age 85 and older are at risk for having insufficient income, and because of their longevity; it is usually women who come up short on retirement income, Mabini notes.
“The problem is that those without a good workplace pension plan tend not to save on their own,” he says. They think CPP and OAS will be sufficient, he adds. “The most you can get from CPP, and few get it, is about $12,000 a year at age 65. With OAS, it is about $8,000.” While $20,000 a year may sound OK for a retiree, it isn’t enough when facing long-term care costs of thousands a month, Mabini says.
If you don’t have money to cover healthcare costs, you have to depend on government income supplements and other programs which are not always readily available, he notes.
“There needs to be more education about the importance of retirement savings, and the risks of not having a workplace pension,” he says. “Saving on your own can work, but putting away two per cent of what you make is not adequate for some people. People need to realize the risk of senior poverty.” If you are saving on your own, Mabini recommends setting an income replacement target, making savings automatic and ideally mandatory, pooling, and having a way to turn those savings into a lifetime income string.
The full findings from HOOPP’s Retirement Security series can be found here.
We thank Darryl Mabini for speaking to Save with SPP. The Saskatchewan Pension Plan provides an excellent way to save for retirement if you don’t have a workplace plan, and it offers annuities to turn your savings into a lifetime pension. Find out more at www.saskpension.com.
Written by Martin Biefer |
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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 |
Jul 23: Best from the blogosphere
July 23, 2018A look at the best of the Internet, from an SPP point of view
Actual retirement savings lag even our own targets
Canadians think they should be putting away 14 per cent of what they make for their retirement. Only problem is, the same research found that on average Canucks are saving 12 per cent.
These numbers come from recent international research, conducted by Schroders, published in Benefits Canada magazine. The article found Danes were the only nationality surveyed who put away more than they think they need to save – 13 per cent savings versus a target of 12 per cent. While Canadians undersave by two per cent, Chileans, who figure they need 19 per cent savings but put away 13 per cent, have an even bigger savings gap.
Worse, the survey found most people underestimate what they will need in retirement for basic expenses. The article notes that Canadians think they will spend 42 per cent of savings on basic living expenses, but in reality, the figure is closer to 59 per cent.
“There is a real danger that people globally are underestimating the proportion of their retirement income that will need to be allocated to basic living expenses and the amount of money they will need to live comfortably in retirement, particularly in the current environment of low returns and increasing inflation,” states Lesley-Ann Morgan, global head of retirement at Schroders, in the article.
Have you done this math? If you’re thinking now that you are not putting away enough for retirement, consider joining the Saskatchewan Pension Plan. If you’re an SPP member and in the same boat, why not ramp up your contributions a bit? Better to be an oversaver than an overspender – at least according to the research!
The simplest retirement plan ever?
An article from Reuter Benefits boils retirement down to three thoughts.
First, the article notes, select the age when you want to retire. When you are at that age, the article then asks, add up your expected expenses. Then add up your expected income from all sources. If you have more expected income than expected expenses, you are good to go.
If you are not good to go, then you need more savings and less expenses. The article also recommends the use of a financial planner to help you finalize your plans.
Written by Martin Biefer |
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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 |