How debt can handcuff your savings efforts

Canadians are buying an awful lot of stuff on credit these days – so paying down credit-related bills often leaves little to no room for much else, obviously including long-term savings.

Writing for Money.ca, Christy Bieber observes that “Canadian households now owe a record $1.80 in credit market debt for every dollar of after-tax income they earn, a ratio that has climbed for six straight quarters, according to Statistics Canada.”

Equifax Canada, she continues, notes that the average Canadian “is carrying a record $22,278 in non-mortgage debt.”

“Both trends point to the same underlying pressure: before groceries, rent or savings even enter the picture, more of Canadians’ paycheques are already spoken for,” she writes.

Her article asks the question – should we focus all our efforts on getting the debt paid down first, and then save later? Or is a blended approach a better idea?

While one would normally think of directing all available cash at the debt, Bieber continues, “there is a risk in funnelling every spare dollar toward debt and neglecting an emergency fund — a single surprise expense can restart the cycle, sending someone back to a credit card. That’s why it’s financially prudent to set some cash aside before going all in on payoff, as it creates an essential buffer.”

She cites U.S. financial author Dave Ramsey’s idea of “Baby Steps,” where you first set aside $1,000 for emergencies before getting aggressive on debt.

“The idea holds up well for the average Canadian. Setting aside even a small buffer in a Tax-Free Savings Account (TFSA), where withdrawals don’t create a permanent loss of contribution room, gives Canadians breathing room without derailing a debt-payoff plan,” she writes. And, she continues, if you can put a little bit into a retirement savings program to build up a nest egg – especially if there is an employer match – that’s a wise step.

The article outlines some other steps you can take to attack debt – after you first direct at least some money to savings:

• You could switch to a credit card that offers lower interest rate, which reduces your minimum monthly payment
• You could consider taking a loan to pay off your debt, as the loan interest rate is usually lower than the credit card interest rate
• Would a personal line of credit lower your interest rate versus a credit card?

An article produced by Global News suggests the rising cost of living may be a key reason why Canadians’ debt levels are so high.

Citing research from Equifax Canada, the broadcaster reports that “40 per cent of all respondents said they were spending more than a year ago, while just 18 per cent said they were spending less. Forty-two per cent of those spending more identified as being younger than 55, while 36 per cent were 55 or older.”

As well, the article continues, higher prices are causing a sort of “lifestyle shrinkflation” for Canadians.

An MNP survey found that “three in five Canadians (61 per cent) said at least half of their income is already committed to bills, debt payments and regular expenses before it arrives, while around one-third (32 per cent) said most of their paycheque is already committed before it arrives.”

That’s why so many are almost forced to use credit to make purchases, the article adds.

“A large portion of respondents to the Equifax survey say they are also using their savings, credit cards or other lines of credit to cover everyday expenses, with many piling up debt as they go,” Global News reports. “Nearly a quarter (23 per cent) say they are using savings to pay for day-to-day needs, while 20 per cent say they relied on credit more than last year. Thirteen per cent said they were borrowing money elsewhere to cover basic living expenses,” the article adds.

It’s a scary trend – having more debt than savings – that can create difficulty when you’re retired and living on a smaller income, notes Barron’s.

Research from Schroder’s, the article notes, found that “22 per cent of respondents who are 70 or older said their credit card debt exceeds their savings; 28 per cent of respondents between the ages of 60 and 69 said the same.”

Even if you can save a small percentage of your take-home pay, the compounding effect over time can make those loonies pile up.

The Saskatchewan Pension Plan is a voluntary defined contribution pension plan open to any Canadian with available registered retirement savings plan room. You can start small and ramp up later when things improve.

You decide what to contribute – it can be any amount up to your annual RRSP limit. You can also transfer in any amounts from other RRSPs you may have to consolidate your savings nest egg.

SPP takes your hard-saved dollars and invests them in our professionally managed, low-fee, diversified pooled funds. At retirement, your options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

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How is the “Buy Canadian” movement going?

Nothing we can remember – perhaps other than Expo 67 – has united Canadians more than the U.S. president’s talk of making us the 51^st state, and the slapping of tariffs on a variety of Canadian-produced goods.

Save with SPP wondered how well the “buy Canadian” and travel elsewhere thing is going, more than a year after the problems first began.

Writing for The Financial Post, Pamela Heaven reports that a recent Bank of Canada study shows that the whole boycott thing is having an impact.

“Central bank researchers tapped three sets of data that confirm Canadians have indeed been shifting away from their neighbours to the south by increasing their spending on domestic travel and Canadian grocery products and reducing their spending on similar U.S. products and services,” she writes.

Fewer of us are going Stateside, her article continues.

“Canadians took almost 10 million or 25 per cent fewer trips to the United States last year. The biggest drop was in trips across the border by land which fell by 8.4 million or 30 per cent. Trips by air were down 1.2 million or 12 per cent,” she notes.

Instead, her report notes, many are travelling within Canada, or to other, non-U.S. destinations.

Another tactic employed here in light of the U.S. trade and annexation talk/measures was a decision by Canadian provinces to remove U.S.-produced alcohol from shelves.

Ariel Rabinovitch, reporting for Global News, notes that this ban resulted “in Canadian imports of U.S. alcoholic beverages decreas(ing) by approximately 81 per cent (from approximately US$718 million to approximately $137 million).”

While a couple of provinces have since put U.S. alcohol back on the shelves, the efforts so far have cost U.S. booze exporters upwards of a billion dollars in sales, the article adds.

The Americans are getting the message, former PM office official Diamond Isinger tells BNN Bloomberg.

“It’s clearly yielding results,” she tells the broadcaster. “It’s clearly being noticed by the president. It’s something very frustrating for him, and it’s having very real economic effects on American producers,” she adds.

J.R. Duren, writing for The Independent, reports that the Canadian travel boycott of the U.S. has cost America about $3 billion thus far.

“Canadians have a widespread distaste for Trump’s rhetoric and policies toward Canada over the past 19 months, a survey last month from polling firm Pew Research Center revealed,” the article notes.

“Overall, perceptions of the U.S.’s reliability have also plummeted since 2022. `In Canada, 83 per cent described the U.S. as a reliable partner in 2022, compared with 35 per cent today,’ the Pew survey found,” the article continues.

As we write this, negotiations in Washington between Canadian and U.S. trade officials have broken off, and a new wave of tariffs and counter-tariffs are expected. We’ll all be keeping our eyes on what develops.

A made-in-Canada – specifically made-in-Saskatchewan – solution exists for those of us who, perhaps lacking a workplace pension program, are saving on our own for retirement. The Saskatchewan Pension Plan is open to any Canadian with registered retirement savings plan room.

You decide how much you want to save – it can be any amount up to your personal RRSP contribution limit. SPP does the rest, investing your hard-saved dollars in our low-cost, professionally managed pooled funds.

You can also transfer in any amount from other RRSPs you may have to consolidate your nest egg.

At retirement, your income options from SPP include the security of a lifetime monthly annuity payment, or the flexibility of our Variable Benefit.

Check out SPP today!

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Has cash become king for younger savers?

New research from TD Bank suggests that younger savers are not contributing to their Tax Free Savings Accounts (TFSAs) but are preferring to keep their savings in ready-to-spend cash accounts.

The research was covered in a recent report by Ari Rabinovitch of Global News.

As younger Canadians struggle with the heightened cost of living and a difficult job market, a new survey from TD Bank suggests Gen Z and millennials who use a tax-free savings account (TFSA) aren’t investing in that account because they want the money readily available,” he writes.

The unemployment rate for younger Canadians, the article continues, is “more than double the national average according to recent Statistics Canada data.” Indeed, the article adds, youth unemployment was over 14 per cent as of October 2025.

Perhaps because of that, the article reports, “41 per cent of Gen Z and millennials who currently hold a TFSA are not investing inside of it, the TD research found.”

It’s not just the young who are keeping things in cash, the article continues.

“The survey also says 65 per cent of all Canadians hold a TFSA, but 39 per cent of them are not investing the money inside,” Rabinovitch notes.

“Introduced during the Great Recession, the TFSA was launched in 2009 and acted as a way to encourage Canadians to invest for retirement and other milestones,” the article explains.

“A TFSA acts as a tax shelter, allowing Canadians to put a certain amount of money into their account and, if they want, use that to invest in things like stocks, bonds, GICs and mutual funds,” the article adds.

You don’t pay taxes on dividends, interest, or capital gains inside a TFSA, the Global report adds, and in 2025 the annual contribution limit was $7,000.

The cost of living, the Global article tells us, was “the biggest concern for Canadians” ahead of the recent federal budget.

Recent polling done by Ipsos for Global “suggested 69 per cent of Canadians are `worried’ the government won’t do enough to help them in the years ahead. That number rose to more than 70 per cent among younger demographics,” the article states.

As well, the report concludes, “nearly half of respondents (46 per cent) to an Angus Reid survey conducted by Willful in October said they had to dip into their savings to keep up with daily expenses.”

Even if there’s not much left after the bills are paid, the Saskatchewan Pension Plan is a capable partner for long-term retirement savings.

You can contribute any amount you want, up to your personal registered retirement savings plan (RRSP) limit. You can make pre-authorized contributions from a bank account or credit card or set up SPP as a bill in your online banking and make contributions that way.

Your savings grow tax-free while they are in SPP – those taxes are deferred until you begin to withdraw your money as income in a post-work future. And your income options include a lifetime monthly annuity payment that never runs out, or the more flexible Variable Benefit.

Check out SPP today!

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Worst-ever bits of financial advice to watch out for

We occasionally, in this space, have listed some of the best bits of financial advice people have ever received.

That got us thinking – what are some of the worst bits of financial advice that have been doled out to people. In the interest of protecting us all from being steered the wrong way, Save with SPP is on the lookout for the worst of the worst, in terms of financial advice.

“Let the bank come get it,” is identified by the A Dime Saved blog is a top bad financial idea.

“When you finance something whether it’s a car or a home, you’re entering a legal agreement to pay for it. If money gets tight, you should be reaching out to your lender to negotiate, not ghosting them. Walking away and letting the bank `come get it’ might sound like a bold move, but it comes with long-term damage to your credit score that could haunt you for years,” the blog explains.

Another one on the blog’s list is “take a loan to pay off a loan.”

“Unless you’re consolidating debt at a lower interest rate, using one loan to cover another just digs a deeper hole. It delays the inevitable and compounds your financial stress. It’s not a solution — it’s a snowball,” the blog warns.

A third one is “put everything on a credit card for points.”

“Chasing credit card rewards without discipline is a trap. The points might look great, but the interest you’ll pay if you don’t clear your balance each month will wipe out every perk. If you’re not careful, your spending will spiral,” the blog explains.

The SoFi Learn blog suggests that “you don’t have to worry about retirement until later” is a particularly unsound bit of advice.

“Friends, family, and acquaintances may tell you to enjoy your youth and not to worry about your old age until later,” the blog explains. “However, the sooner you start to save, the more money you’ll have later on thanks to compounding interest, which builds earnings on your investment and on that investment’s interest. Putting off saving until midlife can put you behind the eightball, causing you stress and anxiety as you try to make up for lost time,” the blog adds.

A second idea in the blog is that “follow your passions” may not be the best financial advice you’ll get. “Although it sounds nice, following your passions professionally rarely pays the bills. And it can also put you into a very competitive and crowded field, if your passion is one of the common ones; say, acting, singing, cooking, or creating art,” the blog warns.

In a Global News article, a number of bad ideas are captured. Common bad financial mistakes, the article notes, include “using a credit card advance to fund a down payment, using student loan money to travel, moving too often and any investment seminar promoting a ‘sure-fire way to beat the market.’”

We can add a few more from our own travels. Thinking it’s OK to only make the minimum payment on a credit card. Taking a vacation “on the card,” without saving anything for it in advance or to pay down the debt afterwards. Unwittingly paying super high fees, front-end and back-end loads on investments. Not really knowing how much you are spending versus how much you are taking in.

Avoid these potential pitfalls, live within your means, and save for the long term. If you have a pension plan through work, be sure you are signed up and contributing to the max – don’t decide you’d rather spend that money versus setting it aside for your post-work future.

If you don’t have a workplace plan, the Saskatchewan Pension Plan may be just what you are looking for in terms of a savings partner. SPP is open to any Canadian with registered retirement savings plan room.

You decide how much you want to contribute – and you can also transfer in any amount from your other non-locked-in RRSPs. You provide the money, and SPP’s investment wing does the rest, growing your money in our low-cost, professionally managed pooled fund.

At retirement, those savings will turn into income to live on. Options include a monthly, lifetime annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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Is 70 the new 65? Canadians are retiring later: Global News

Regina’s Diane Clark tells Global News that retirement is not working out the way she planned it.

“We don’t travel anymore, we don’t buy as good of food as we used to buy, basically, and we stick at home a lot,” the 75-year-old tells Global News. Her pension investments took a big hit in the 2008 credit crisis, the broadcaster reports, and that plus post-COVID inflation has cramped her retirement income and lifestyle.

Asked what she would advise others to do, her answer was simple – “save, save, save,” Global reports.

Recent research from CIBC shows that more Canadians – perhaps mindful of the fact that a dollar doesn’t goes as far as it once did – are planning to exit the workforce later than planned, Global notes.

“About 66 per cent of Canadians are changing their plans for when they retire,” the Global article notes. “As a result, some retirees are looking to save more, while those already retired told CIBC they’re cutting back on planned travel or leisure activities, reassessing investments and adjusting their budget.”

So what can soon-to-be-retirees learn from this?

Global talked to CIBC’s Jamie Golombek, who suggested people should develop “an actual budget, and part of that budget should include retirement savings and making sure we’re taking advantage of all the different registered plans.”

If savings don’t generate enough income, work becomes less likely to become a thing of the past, the article continues.

The CIBC research found that “70 per cent say they anticipate having to work during their retirement either through a phased or semi-retired approach, with some working well past the retirement age of 65,” Global reports.

Other options, Golombek tells Global, include part-time or “gig economy” jobs.

Many older Canadians worry about having to depend on their adult kids in their later years.

“They’re absolutely terrified about outliving their savings and becoming a burden on their family,” Rudy Buttingol, president of the Canadian Association of Retired Persons (CARP), tells Global News.

CARP, the article says, wants to see the current registered retirement savings plan/registered retirement income fund rules become more flexible. The current rules, the article explains, “force some seniors who are still working to receive income that would better benefit them later in life.”

Bonnie-Jeanne MacDonald of the National Institute on Ageing is quoted in the article as noting that those who wait until 70 to collect their Canada Pension Plan and Old Age Security benefits will get a higher monthly amount.

“If you wait from age 60 to age 70, you’ll more than double this pension, which is guaranteed for life, it’s inflation indexed and it’s … a great deal when you do the math. It’s almost like an arbitrage opportunity because the incentives are so good,” she tells Global.

Members of the Saskatchewan Pension Plan have an option of interest to those who don’t want to draw down their retirement savings until later in life. With the Variable Benefit, you get “control over how much retirement income you wish to withdraw throughout the year,” with the rest of your funds continuing to be invested in either SPP’s Balanced Fund or Diversified Income Fund.

Check out SPP today!

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For many of us, inflation is an unwelcome guest from a long time ago who has made a sudden reappearance. For the younger among us, it’s a weird new thing.

How do we cope with a reality that has prices for things like groceries soaring? Save with SPP took a look around for some top tips on slaying the beast of inflation.

The folks at Ratehub.ca describe “two common categories of inflation” as being “cost-push inflation” and “demand-pull” inflation.

Cost-push inflation, the blog reports, “happens when production costs rise (wages, raw materials, transportation, etc.) but demand doesn’t.” The higher cost of producing items inflates their cost, the blog explains.

Demand-pull inflation, Ratehub explains, “is the result of higher consumer demand for certain goods.” Popular items become harder to find, supplies shrink, and companies “start charging more.”

Terrific. But what can we do about it?

Among the tips offered up by Ratehub are:

• Putting off big expenses – if you can, Ratehub suggests, put off costly home renos or big-ticket purchases like new cars.
• Save on groceries – buy in bulk, the blog suggests; take advantage of grocery store points programs, and plan more vegetarian meals given the high price of meat
• Pay off debt – “Brainstorm some ways in which you can free up money… by cutting back, then use the extra cash you saved to begin paying off your debt.”

Global News suggests a few more ideas:

• Spend less on dining out, entertainment – A recent poll, the broadcaster reports, found that 54 per cent of those polled (in 2022) were “dining out less.” As well, Global notes, 46 per cent said they were “cutting back on entertainment spending.”
• “Spring clean” your budget – Myron Genyk of Evermore Capital tells Global News that people should be “taking a look at credit card statements (for) recurring charges that might not be worth the monthly fee, such as a streaming subscription that is not being watched.” Cutting these “passive” charges may be easier than “overhauling one’s lifestyle” to make spending cuts, she tells Global.
• Consider the impact of higher interest rates on savings, expenses – Interest rates, reports Global, haven’t been this high for a generation. For savers, now may be a good time to consider a Guaranteed Investment Certificate (GIC), but the article warns that even GICs may not keep pace with inflation if it continues to increase. For those with mortgages, Genyk suggests they consider a longer amortization period. “While they might end up owing more on their mortgage by extending the life of the loan, it might be worth it to offset the temporary inflationary pressures on their monthly budget,” the article suggests.

Forbes Advisor has some additional thoughts on the subject.

• Speed up debt repayment – With interest rates on debt rising, a bad thing is getting worse, Forbes reports. The article quotes Doug Hoyes of Hoyes Michalos as saying “if you are spending more money on food, rent, and gas for your car, that leaves less money to service your debt.” His first tip for surviving inflation is “to tack consumer debt as quickly as possible to avoid the snowball effect of debt overwhelming your finances.”
• Use cash-back credit cards – Vanessa Bowen of Mint Worthy tells Forbes that using a cash-back credit card “on essential expenses like gas and groceries can be a simple way to put money back in your pocket.”
• Avoid volatile investments – When investing, watch out for companies carrying a lot of debt. Nesbitt Burns’ John Sacke tells Forbes “you want to buy stocks in companies that are likely—and I use that word ‘likely’ very carefully—to perform better than other companies in a rising rate environment.”

The folks at Sun Life Financial finish us off with some classic inflation-beating advice.

• Cook at home – “Cooking at home is cost effective,” especially when compared to the cost of dining out or ordering in, the article advises. Think of the $6 latte you like – on a daily basis, it is costing you $2,190 per year! Much cheaper, the article notes, to make your own coffee at home.
• Buy used, or borrow – “Consider buying second-hand items – you can sometimes find great deals at a fraction of the original price. Books, toys, sports equipment, furniture, clothing and accessories … you can find it all on platforms like Facebook Marketplace and Kijiji,” the article suggests. You may also be able to borrow or rent things like speciality tools for a home improvement job, rather than laying out money to own them, the article suggests.
• Travel during off-peak times – The article suggests being “smart” about travel, and to “take advantage of the off-season. You’ll likely have a cheaper and more relaxed holiday.”

Some of our friends have started doing challenges related to health and weight loss; maybe some of these ideas would make good challenges – going a week, or a month, without dining out or ordering in would save a pile of cash, for example. Creativity is always good when it comes to saving money, we wish you the best of luck in your own challenges.

When you are able to generate some extra savings, don’t forget about the future. If you are saving on your own for retirement, a wonderful and willing partner is out there for you – the Saskatchewan Pension Plan. SPP members have their savings pooled in a low-fee, professionally managed fund. Those savings grow over time, and when it’s time to collect, SPP members have choices, such as a lifetime monthly annuity payment or the flexibility of our Variable Benefit. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Ah, spring. Time to drag the golf clubs back up to the garage, to pump up the bike tires, and start getting the garden going. And, for many of us, time to get a nice tax refund cheque (or, more likely, a refund deposit).

Save with SPP wondered what people do with the refunds. Let’s take a look around and find out!

According to Fiona Campbell, writing for Forbes Advisor, tax refunds “are a sweet perk of filing your income tax return – and the good news is that most Canadians get one.” In fact, she notes, 58 per cent of filers got a refund in 2021, and the refund averaged just over $2,000.

This year, the average refund is more like $2,100 and change, she continues.

Campbell’s ideas on how to spend the refund don’t include “concert tickets, vacations, or designer clothes,” but are intended to “put you ahead financially in the long run and give you peace of mind instead.”

First (no surprise) is paying down debt. “If you carry a credit card balance, or only make the minimum payments, you’ll end up paying interest each month—and with APRs averaging 21 per cent, that can add up quickly,” she warns. The average Canadian owes more than $4,000 in credit card debt, she adds. If you don’t have credit card debt, you may have other loans or credit lines that can use a hand, she continues.

Next comes the mortgage. Campbell suggests making a prepayment on your mortgage, either as a lump sum or as an extra amount each payment. “If you don’t have other outstanding debt with higher interest rates, prepaying your mortgage can be a smart way to use your tax refund as it goes directly to the principal portion of your loan,” she notes.

Other ideas from Forbes Advisor include topping up your registered retirement savings plan (RRSP) or Tax Free Savings Account (TFSA), starting or adding to your emergency fund, or saving for a child’s education via a registered education savings plan (RESP).

The folks at the Nerd Wallet blog have a few more ideas.

“A tax return can be a great way to fund home repairs and upgrades. Maybe you have a big project to tackle, such as redoing a bathroom or renovating your kitchen. Spending your money on home upgrades is an investment that could shrink your home insurance bill and add value to your property in a way that pays off handsomely when it comes time to sell,” the blog advises.

Another idea, the blog continues, is to “invest in yourself.”

“While tackling debt, saving for the future and improving your home are all worthwhile uses for your tax-season windfall, don’t forget that you are also a smart investment. Maybe you’d like to start a side hustle, treat yourself to a monthly massage, or complete a professional certification. Though they might not earn compound interest, these types of investments can yield a sense of wellbeing and set you up for future success in a way that’s truly priceless,” the blog suggests.

Global News covers many of the same ideas, concluding that it really boils down to either paying down debt or adding to savings (or both).

The broadcaster suggests targeting credit card debt first.

“Credit card debt, which typically carries high interest rates at upwards of 20 per cent, can be particularly damaging to Canadians’ finances and “snowball” out of control, states financial author Sandy Yong in the article.

However, Yong says, even though saving and paying off debt are seen as the most sensible things to do with a refund, having a little fun is never out of the question. There’s no reason, she tells Global, to “feel bad about spending it on something for yourself.”

If you’re planning to use some or all of your tax return on your retirement savings, why not consider the Saskatchewan Pension Plan. SPP works just like an RRSP – the contributions you make are tax-deductible, which may help you get a refund down the road. And, way further down that road, the contributions you make to SPP – having been professionally invested, at a low fee, in a pooled fund – will grow into a future income stream for the retired you. A gift that keeps giving, as they say.

Check out SPP today!

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Among the many strange aspects of life during the recent pandemic was the “work from home” boom. Office buildings stood empty, nearby convenience stores and food courts closed, and there was no “rush hour” traffic update on the morning news. Everyone was at home.

But that may be changing.

A recent CTV News report sums up how different things were during the pandemic.

COVID-19 caused “a mass exodus to remote work that had never been seen before,” the broadcaster reports. In 2016, “only seven per cent of workers in Canada said they `usually’ worked from home,” the article notes. As recently as early 2022, that number had soared to 24.3 per cent, or nearly one quarter of all workers.

But people are starting to “trickle” back to the office, CTV reports. The “working exclusively at home” number dropped to 20.1 per cent in May of last year, although there were still 11.7 per cent of workers in “hybrid” work arrangements (some hours at home, some at the workplace) as recently as November.

There are a couple of issues that have arisen due to remote work, reports Global News.

First, there seems to be a disconnect between what employers want – a return to work in the office – and what employees want – to be able to continue to work from home.

“A quarter of Canadians who usually work from home would like to work from home more, while one in eight would like to work from home less — which the report says is a challenge for employers,” Global reports, citing information from Statistics Canada.

“A mismatch between employees’ preferences for telework and the hours they work from home may negatively affect employee retention,” reports Global, again citing the Statistics Canada report.

The second issue is that offices in downtown centres, such as Toronto, are experiencing record vacancy rates.

According to the Financial Post, “the vacancy rate for downtown Toronto office buildings reached a record high at the end of last year as a flood of largely empty space from newly completed projects hit the market.”

“The downtown office vacancy rate in Canada’s financial capital rose to 17.4 per cent as nearly 58,100 square metres of new space came to market during the fourth quarter, according to data released Tuesday by brokerage CBRE Group Inc.,” the Post reports.

“The poor performance of the Toronto market helped push Canada’s national downtown vacancy rate to its own record last quarter, hitting 19.4 per cent, the data show,” the article notes.

COVID-19 is cited as the chief reason for the vacancies, as well as the fact that major office construction projects can take years, the article adds.

Because office towers take many years to construct, Toronto’s still working through office projects that began before the pandemic.

“With the city accounting for nearly half of all new office construction nationwide, Canada’s net-absorption rate, or the pace that office space gets leased when it becomes available, would have been positive without the impact from Toronto’s new supply, the data show. Instead, that rate was negative in the period,” the article concludes.

Some observers fear that the business of building and leasing office space may have been permanently damaged due to the COVID-related work-from-home trend.

The Canadian Press reports that “the COVID-induced work-from-home shift has ravaged the office market as many employers re-evaluated their office footprint. Firms have also looked at reducing their real estate holdings as a way to rein in expenses to help cope with the current weaker economy.”

“It is likely that 10 to 15 per cent of demand has been permanently destroyed with (work-from-home) trends,” Maria Benavente, vice-president and real estate-focused portfolio manager at Dynamic Funds, tells The Canadian Press.

This strange, once-in-a-lifetime (hopefully) situation may take a while to play out. It will be interesting to see if the trickle of “in-office” workers begins to become more of a river, correcting the problem of office vacancy and breathing life into downtown businesses that are supported by office workers. Or, will people fight for the right to work from their dining rooms? Stay tuned!

Wherever you work, saving for retirement is important. If you are lucky enough to have a workplace savings program, be sure you are taking part to the maximum. If you don’t, and are saving on your own for retirement, you may want to consider joining the Saskatchewan Pension Plan.

Open to any Canadian with registered retirement savings room, SPP’s voluntary defined contribution plan delivers expert investment management at a low cost, using a pooled fund. SPP will grow your savings, and when it’s time to put work behind you, you can choose between a lifetime annuity payment each month, or SPP’s Variable Benefit program. Find out why SPP has been helping Canadians build secure retirements since 1986 – check them out today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Four in 10 Canadians not confident about retirement: TD survey

A whopping 43 per cent of Canadians say they are “not confident” that they will be able to retire when they initially had hoped to.

That’s a key finding from new research from TD Bank, reported on by Global News.

It looks like the increase in the cost of living is a key reason behind this lack of retirement confidence, the broadcaster reports.

“A majority (71 per cent) of the survey respondents also said that the high cost of living and inflation has made it increasingly challenging to meet their financial goals over the past year,” Global notes.

For its part, TD says the rocky economy is a good reason to consult professionals when thinking about personal finances, the article adds.

“Canada’s current economic climate continues to impact how Canadians approach their finances and investments, and that’s why it’s more important than ever to seek trusted advice,” Pat Giles, vice-president of saving and investing journey at TD, states in the article.

“In challenging economic conditions, the right financial support can make a significant difference, especially when balancing competing saving and spending priorities,” he tells Global News.

The article notes that the TD study follows a recent analysis by Deloitte Canada that discovered that “55 per cent of Canadians aged between 55 and 64 years will have to make changes to their lifestyles to avoid eating up all their savings during retirement,” the article continues.

Those responding to the TD poll said that “the high cost of living” has been holding them back from making contributions to their investments, such as registered retirement savings plans (RRSPs) and Tax Free Savings Accounts (TFSAs) this year.

Half (47 per cent) planned to make no contributions to RRSPs or TFSAs, and 46 per cent of that group specifically cited the higher cost of living as their reason to hold back.

More than half, or 54 per cent, have not set up a personalized plan to help them reach their savings goals, the article continues.

But it’s never too late to start, the article concludes.

“It’s a myth that you need to have a certain dollar figure to start prioritizing your financial future. No amount is too small to start saving or investing,” Giles states in the article.

One of the nice features of saving for retirement via the Saskatchewan Pension Plan is that you are in charge of deciding how much to contribute each payday, or each month. You can start at any level you like, and adjust your contributions as you go along.

Your contributions will then be invested in a low-cost, professionally managed, pooled fund. And when it’s time to retire and turn savings into income, SPP’s options include a lifetime annuity – you get a monthly payment for life – or the Variable Benefit, where you decide how much you want to withdraw in income, and how much you want to leave invested.

Check out SPP today!

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After a brutal couple of pandemic-driven years, it appears tourism may be starting to make a comeback.

Over in Manitoba, reports Global News, “hotel occupancies are back to 2019 levels month over month, indicating the tourism industry is making a full recovery from disruptions due to the COVID-19 pandemic.”

“This is the year of tourism,” states Nathalie Thiesen of Economic Development Winnipeg in the article.

More people have been coming to the city’s events, such as the Winnipeg International Jazz Festival, Fringe Theatre Festival, Folk Fest and Folkorama, the article notes.

“It’s great for downtown and the recovery of some of the hardest hit businesses and areas of the city,” states Thiesen in the article.

It’s a similar story in B.C., reports the Richmond News. There, tourism-related employment has just hit a five-year high.

“New Statistics Canada data show 362,000 tourism employees in B.C. in July, up 6,500 from the 355,500 employees in June, and the most jobs in the sector since August 2018, when there were 368,000 employees, according to Statistics Canada’s Labour Force Survey,” the article notes.

“The 2023 numbers compare with 359,250 tourism employees in the province in July 2019, and 351,750 tourism employees in B.C. in June 2019,” the News reports.

Nationwide, the numbers are beginning to return to “normal,” reports the Hamilton Spectator.

Marc Seguin of the Tourism Industry Association of Canada tells the Spectator that as recently as 2019, Canada “achieved $105 billion in total tourism spending, with $42 billion of that figure stemming from business travel.”

During the pandemic, Seguin states in the article, “total tourism spending dropped by half and business events dropped to near zero.”

Business trips are increasing, the article notes, with 6.4 million business trips logged for the last quarter of 2022 — still down from the 7.2 million in the last quarter of 2019.

An important factor impacting the rebound of travel is, of course, inflation, the article points out.

“People are willing to spend more at the moment to travel,” states Frederic Dimanche of the Ted Rogers School of Hospitality and Tourism Management at Toronto Metropolitan University in the article. “That leverages the airlines or the hotels to set their prices at a higher level than they used to, because they want to make up for lost revenues during the COVID crisis.”

But the rising cost of travelling may be starting to hamper tourism’s recovery, warns CTV News Regina.

“Over the past three years, the tourism industry had been clawing its way back to pre-pandemic numbers, however, a new report by TD Bank found the pace of recovery started to slow this year,” the broadcaster reports.

The TD report cites “financial challenges in Canada, such as higher interest rates, a slowing job market and broader tourism slowdowns seen both domestically and internationally” as the chief reasons for the slowing recovery.

While Alberta and B.C. visits are beginning to approach 2019 levels again, the rebound is slower in Saskatchewan, the article notes.

“Saskatchewan… has lagged when it comes to international travel. Visits to the Prairie province are 40 per cent below the 2019 average,” CTV reports, adding that the TD report suggests “this decline might be in part due to same-day tourists, whose numbers have fallen at less than 50 per cent pre-pandemic levels.”

Let’s hope this overall tourism recovery continues — there’s a lot of spin-off benefits from tourism that help the economy.

Travelling, as the articles note, can be a little pricey — even a car trip requires gas, maybe hotels, restaurant meals and so on. Factor in rail or airfare or cruise ship costs and the impact on your wallet grows. That’s why saving for retirement — the period of your life when you’ll have the most time for travelling — is important.

If you haven’t started saving for retirement, consider signing up for the Saskatchewan Pension Plan. SPP will grow your savings dollars in a pooled, professionally managed fund at a very competitive cost. When it’s time to update the passport and book tickets, SPP is able to convert your savings into retirement income, including the option of a lifetime monthly annuity payment. Be sure to check out SPP today!

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