Tag Archives: Canadian Centre for Policy Alternatives

Is working longer good for your health?

There’s mounting evidence that shows Canadians have to work longer than they planned, due to the combination of high personal debt and low retirement savings.

Save with SPP took a look around to see if this “new normal” is a good or bad thing, health wise.

Interviewed in Forbes magazine, Heller Sahlgren, author of Work Longer, Live Healthier, sees working longer as a positive, health-wise.

His book makes the point that healthy people in their 60s should have no problem working, and that the work is good for them. “Continuing some form of paid work in old age is one way to ensure a healthier population,” he states in the article.

How is working healthy? The article notes that “studies have found that the mental demands of a job can be a force for staving off cognitive decline, an insight summarized by the catchphrase `use it or lose it.’”

An article in the New York Times makes a similar argument. “What is the benefit of work? Activation of the brain and activation of social networks may be critical,” states Nicole Maestas, associate professor of healthcare policy at Harvard, in a Times interview.

There is a potential downside to working later in life, reports the Money Ning blog. If you’re “not passionate” about your work, or “are working in a job that is physically demanding or extremely stressful,” the idea of keeping your job “may not be a pleasant one,” the blog states.

A paper by the Canadian Centre for Policy Alternatives, Working After Age 65: What is at Stake provides a great overview of this issue. One section deals with the health of older workers, and notes that “more than 50 per cent of retired workers over 65 have three or more chronic health conditions (such as high blood pressure, diabetes, or arthritis.”

As well, the paper notes, “one in four fully retired workers over 55 list poor health as their reason for retirement,” adding that “many older workers will have difficulty remaining in the workforce due to poor health, even if they are not financially ready to retire.”

To recap, then, working past 65 can be good for your mind – keeping it in gear, so to speak – and the social connections from work are helpful, preventing isolation. But these benefits assume your health is good, and that seems to be the delineator – older folks do tend to have more health issues than younger ones, and if your job wore you out emotionally and physically, keeping at it may not be a great idea. So you’ll need to weigh all these factors should you consider working for the longer term.

A hedge against becoming a long-serving worker is retirement savings. Those savings give you options, such as scaling back on the amount of time you put in at work, or even moving to something that’s more fun but pays less. Be sure to make retirement savings a priority, and consider the Saskatchewan Pension Plan as part of your savings toolkit. They offer an end-to-end retirement plan for you, investing your savings and turning it into a lifetime stream of income.

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 and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and 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

 

April 3: Best from the blogosphere

By Sheryl Smolkin

It’s almost two weeks since the 2017 federal budget was tabled, so there is lots of “second day” commentary in the mainstream media to draw on for this issue. Saskatchewan also tabled a budget including some provisions that will impact your bottom line.

In the lead up to the federal budget trial balloons were floated regarding making employer-paid premiums for health insurance taxable benefits and changing the taxable rates for capital gains, but none of these dire predictions came to pass.

In the Ottawa Citizen, Kate McInturff, a senior researcher at the Canadian Centre for Policy Alternatives wrote that the budget is a first step to better the lives of women in Canada. She reports that the government will spend $100.9 million over five years to establish a National Strategy to Address Gender-Based Violence — a problem that has directly affected more than one million women in the past five years.

Erin Anderssen at the Globe and Mail offers seven things to know about Canada’s new parental benefits. Once the provinces pass job protection legislation, parents will be able to stretch their leave out for 18 months, but this will mean stretching benefits at a lower rate. The government is expected to move quickly, but the changes may not happen until next year.

Contrary to pre-budget expectations, Lee Berthiaume notes in a Canadian Press article that life-long pensions for veterans were not included in the Liberal government’s second budget. Finance Minister Bill Morneau’s new fiscal plan did contain new spending for veterans and their families, specifically $725 million in promised additional benefits over five years. Still, as welcome as the new money will be, the big question for many veterans is how the government plans to bring back life-long pensions as an option for those injured in uniform.

Hello Uber tax, goodbye transit credit says CBC News. The proposed levy on Uber and other ride-hailing services will for the first time impose GST/HST on fares, in the same way they are charged on traditional taxi services. The non-refundable public transit tax credit — a so-called boutique tax credit introduced by the previous Conservative government — will be phased out on July 1. The credit enabled public transit users to apply 15% of their eligible expenses on monthly passes and other fares toward reducing the amount of tax they owe.

And closer to home, the Saskatchewan budget hikes provincial sales tax to 6% and for the first time, the tax will apply to children’s clothes. CBC presents an analysis of how the PST hike will hit you in the pocketbook.

The government will also wind down the government-owned Saskatchewan Transportation Company, which it says would have required require an anticipated subsidy of $85 million over the next five years.

There were 574 layoff notices attached to this budget, including cleaners in government buildings and workers at the Saskatchewan Transportation Company.

Other notable provincial budget measures include:

  • The exemption for the bulk purchase of gasoline is being scrapped and a tax exemption for diesel fuel is being reduced to 80% of the amount purchased.
  • So-called sin taxes on booze and cigarettes are going up.
  • Various tax credits — including for education and tuition expenses — are being eliminated.
  • Effective July 1/17saskatchewan will apply provincial sales tax to life, accident and health insurance premiums.
  • The Saskatchewan government says it will offset some of the tax increases by reducing income taxes by a half-point on July 1, 2017 and by the same amount on July 1, 2019.


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