Tag Archives: Business Insider

Mar 16: Best from the blogosphere

The big three – divorce, debt and student loans – can hamper your retirement savings efforts

We all like to say that “life gets in the way” is a chief reason why we can’t put money away for retirement.

An interesting piece in Business Insider takes a look at the top three killers of retirement dreams.

First up, the article notes, is divorce. “Divorce impacts all facets of your finances, but it can hit your retirement savings especially hard,” the article notes. That’s because retirement assets, such as retirement accounts and pensions, can be subject to splitting when couples break up, the article explains.

The article, written for a U.S. audience, suggests that retirement accounts “may be divided equally” on marriage breakdown. So you might lose half your nest egg, and if you are the spouse paying support, there’s another expense that can “eat away at your ability to save.”

The article advises those going through a divorce to get their retirement plan rolling again as soon as things have settled.

The second major retirement savings killer is consumer debt, the magazine reports. “While getting out of debt can be tough, it will be even harder to save for retirement with monthly debt payments in the way,” Business Insider tells us. A U.S. study cited in the article notes that 21.3 per cent of those surveyed agreed that consumer debt “prevented them from reaching their savings goals.”

The article suggests focusing on higher-interest credit cards and credit lines first.

Finally, the article says, dealing with student loans is considered the third barrier to retirement. Again, this article is talking about the U.S. situation, but here in Canada, the average student was $27,000 in debt 10 years ago. That number, taken from the Vice.com site is bound to be much higher today. That’s a lot of money for entry-level workers to have to carry.

The article concludes that you can’t predict how your life will go. There’s no surefire way to avoid a divorce, but you can try and limit your consumer debt and where possible, pay down student loans later in life when you are making more.

The article notes that those who start saving for retirement at age 25 tend to have “tens of thousands” more dollars in their retirement plans than those who start at age 35.

If you’re intimidated about taking that first major step into retirement saving, help is on the way via the Saskatchewan Pension Plan. You can start small, perhaps in the days when you’re just starting out and juggling student and other debt, and then ramp up savings when better times arrive. Meanwhile, the experts at SPP are growing your savings for you, at low cost and with an impressive track record of returns. Check them out today!

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing, classic rock, and darts. You can follow him on Twitter – his handle is @AveryKerr22

Jul 9: Best from the blogosphere

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

Canadians begin to make a dent on their collective debt
As interest rates begin to creep up, it appears that Canadians’ thirst for low-interest debt is finally starting to be slaked.

According to Bloomberg News via the Financial Post, the debt to income ratio for Canadians “dipped” to 168 per cent in the first quarter of 2018. That means that the average working Canuck owes $1.68 for every dollar he or she earns. It’s down from 170 per cent in the last quarter of 2017, the Bloomberg article notes.

Debt is often described as the destroyer of retirement dreams. If you are maxed out on all your credit cards and credit lines, there is precious little money left to put away for retirement. If you don’t have a workplace pension plan and are relying on your own savings for your future retirement, the pressure is doubled.

It appears that Canadians are beginning to turn the corner on debt. If you’re in that situation, consider starting to put a little away for life after work. Start small and build up your savings as debts are paid off. The Saskatchewan Pension Plan provides the ideal way to put a little away now so that there’s a bit of security later on – visit their site at www.saskpension.com for full details.

What are the habits of those who retire rich?
Writing in Business Insider, financial advisor Roberto Pascuzzi says there are several key characteristics he has noticed in wealthy retirees.

First, he says, they don’t get distracted from their overall plan. They are realistic about their wealth creation plan and aren’t hoping for “magical” investment gains. And they don’t worry about what others think – they don’t seek approval, he writes.

They make smart, long-term financial decisions and don’t look for a “get rich quick” home run. They are mentally tough and well organized.

They visualize the goal of retiring rich, and they dream big “with a realistic foundation.”

A systematic approach to retirement can help you get there in style. Pay yourself first. Be consistent and methodical in your savings – don’t lose focus and keep a steady stream of income directed at the target. Get rich slowly and avoid trying to hit home runs via your investments. With a little homework we can all get there.

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