Consider these steps to help you afford retirement – even if you are starting late

Gen Xers, reports GoBankingRates, are a “scrappy” bunch who are raising kids and caring for parents against a backdrop of “inflation and other rising expenses.”

A Lending Tree survey, the publication adds, suggests that 70 per cent of Gen Xers will “need all the help they can get to be able to retire.”

But the article lists eight things this group can do to help them to arrive safely in the Land After Work.

First, the article says, you need to understand “your own cost of living, health and goals” when figuring out how much you’ll need – not some generic “retirement blueprint,” states Tyler Meyer, CFP, and founder of RetireToAbundance.com.

Second, he adds. “don’t think of retirement as an all-or-nothing finish line.”

“For many people, retirement may look like a blend of part-time work or flexible work with investment income instead of a complete stop,” the article notes. “That shift in thinking instantly lowers the savings target and opens up more possibilities,” Meyer tells GoBankingRates.

The article is aimed at an American audience, but the third step applies to Canadians as well – be sure to contribute as much as you can to any workplace pension, or registered retirement savings plan, or Tax-Free Savings Account. If you have unused room, begin to fill it up, the article suggests.

If debt is a barrier to your saving, pay it off, the article tells us. Pay off the debt with the highest interest rate first, the article advises.

Think about side hustles that will bring in money when you are retired, rather than simply the idea of having to live on less, Meyer tells GoBankingRates.

“I have seen clients successfully turn interests such as woodworking, photography, fishing and gardening into steady income streams,” he states in the article.

Don’t judge yourself “for not being prepared for retirement,” states Ashley Stearns of Michigan’s Community Financial Credit Union. “Realize you are not alone,” she tells the publication, noting that on average, Gen Xers in the U.S. carry $9,557 USD in credit card debt, surpassing even boomers.

“The most important thing is to start. With the right support and a clear plan, Gen X can rewrite the narrative on debt,” she states in the article.

Another idea, the article continues, is to get the help of a money coach or financial adviser to help you develop “a workable retirement plan.”

The article concludes with a three-step approach to freeing up money for retirement savings, developed by Stearns:

• “Begin by tracking your expenses for a month to identify potential areas to cut and shift to retirement.”
• “Analyze your spending habits.”
• “Make small changes one at a time.”

Many members of the Saskatchewan Pension Plan take advantage of SPP’s automatic contribution feature. SPP permits you to make pre-authorized contributions from your bank account or credit card. By going this route, you are saving money before you have the chance to spend it. SPP will take those contributions and grow them in our low-cost, professionally managed pooled investment fund.

When it’s time to turn savings into income, your options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit option.

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“Buy low, sell high.” As well, there’s “sell in May and go away.” There’s “buy and hold.”

These are among the investment tips Save with SPP has heard about over three decades writing about pensions. But what other gems are out there – what “one best tip” exists, or is at least spoken about, in the great Interweb universe?

Well, let’s start with well-known personal growth guru (and financial author) Tony Robbins.

In a GoBankingRates piece, he offers us three ideas to put us on the path to being millionaires.

“Capitalize on compound interest,” he suggests. “Compound interest is the key to long-term investment success with mutual funds, individual stocks and bonds. It takes a long time to reap the full benefits of compound interest, so as Robbins endorses, the earlier you can start on your time horizon, the better.”

OK, start investing early, and leave the investments alone so that the growth and interest compounds. What else?

Robbins also tells us we have to diversify – “you can’t put it all in one place.” And finally, your savings approach needs to be automated, a “set it and forget it” strategy.

“If you set up your accounts to automatically transfer money into savings and investments, you won’t have the opportunity to talk yourself out of socking it away. It then becomes a habit that you don’t even have to think about — you’ll just be automatically building your wealth without even lifting a finger.”

Let’s turn to the Oracle of Omaha, newly retired Warren Buffett, for some more key investing strategies, in an article from The Globe and Mail.

“Be greedy when others are fearful, and be fearful when others are greedy,” the article quotes Buffett as saying. In other words, if the market takes a downturn, that’s a good time to be “greedy” and buy low.

Other advice from Buffett: “don’t be a stock picker, be a business-picker.”

“[W]e own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves,” he is quoted as saying in the article. “That point is crucial: (We) are not stock-pickers; we are business-pickers.”

Timing the market, or waiting for the perfect moment to wade in, is also not a wise idea per Buffett.

“If you wait for the robins, spring will be over,” he states in the piece. Huh?

“I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month or a year from now,” he is quoted as saying in the article. “What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”

Last word goes to the Get Smarter About Money blog.

They suggest avoiding “trending” investments, to “consider the type of investment advice you want and the cost,” and to “commit to a plan rather than be guided by emotions.”

It’s a wise step to get some professional investment advice before you venture into investing on your own.

There is a way to get professional investing at a low cost for your retirement savings – joining the Saskatchewan Pension Plan either as an individual, or as an organization. SPP invests savings dollars in a pooled fund that is professionally managed at a fee of less than one per cent. When it’s time to retire, your grown savings can be received as income in retirement – options include a lifetime monthly annuity payment, or the more flexible Variable Benefit.

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Two things Suze Orman feels we need to “get honest about” in our savings efforts

Writing for GoBankingRates, Laura Bogart reports that most people are “feeling a financial crunch” and are “tired of hearing that if you would only give up avocado toast, you’d instantly have enough money to retire on.”

Her article quotes well-known financial commentator Suze Orman as citing two basic things that people need “to get honest about” if they truly want to get their savings on track.

Orman, the article notes, felt “sad and concerned” when a recent CNBC survey found that “less than half of all workers feel even cautiously optimistic about having a secure retirement.”

“I am fully aware that for many households, the lack of optimism is not because of bad choices — spending too much, borrowing too much — but more a function that the cost of just getting by each month can make it hard to save more for retirement,” Orman is quoted in the article as having stated.

However, she states in the article, even if “times feel tough through no fault of your own,” we all need to “buckle down and get back on track with retirement savings.”

And it all starts, she states in the article, with “getting honest with yourself.”

Her first question is this – “are you really prioritizing your needs over your wants?”

She issues, in the article, this challenge: “No lip service, or casual commitment. I want you to carefully stop yourself every time you are about to spend money and ask yourself: Is it for a need or a want?”

Try this, she states in the article, for three months. “Be ruthless in asking yourself whether you really need to spend money on something or if it’s just to keep up with the Joneses. If your kids come begging for concert tickets or the latest smartphone, say no — no matter how hard it may be. You owe your children love and support, not front-row seats to the hottest show in town,” the article explains.

And, when you do spend, maybe it’s time “to consider reaching for a cheaper store brand or shopping at more budget-friendly outlets” rather than loading up on expensive “brand-name organic food,” the article continues. If you can, pick the least expensive option when shopping for cars and other major purchases, GoBankingRates advises.

When it comes to savings, Orman states in the article, “every $10, $20, $50 matters.”

The other key thought from Orman, the article continues, is this – “are you saving everything you possibly can?”

“If you are currently saving six per cent of your salary in a retirement account, change it to seven per cent, and set a calendar alert to bump that to eight per cent in six months,” she is quoted as saying in the article.

Other advice from Orman cited in the piece includes adding an extra $50 to your minimum credit card payment. Small changes – saving more, paying down debt faster – will add up, the article continues.

“Make sure you’re spending only on needs, not wants, and at the same time, save, save, save as much as you can. It’s really that simple,” the article concludes.

The idea of gradually increasing your retirement savings rate by small increments is an achievable one for members of the Saskatchewan Pension Plan. SPP allows you to decide how much you want to contribute to your retirement nest egg – you can set up pre-authorized contributions from your bank account and can ask us to increase them whenever you want. More contributions increase your savings nest egg, which is win-win for your future you.

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Building an emergency fund essential, experts say

These days, with so much uncertainty swirling around the economy, inflation, and trade, experts suggest that socking away money in an emergency fund may be a wise move.

Save with SPP took a look at what the experts are saying about emergency funds.

The Winnipeg Free Press calls emergency funds “an absolutely crucial part of any financial plan, regardless of the life stage or situation.”

“For people who already have high-interest-rate debt, having an emergency fund can help guard against resorting to additional high-cost financing in a pinch. It also helps you defray unexpected expenses without needing to raid your retirement accounts,” the newspaper reports.

“Finally, the big reason to have an emergency fund is to cover your basic costs in case of job loss,” the Free Press adds.

The paper suggests that your minimum target savings amount for an emergency fund should be three times your basic living expenses – that’s “housing costs, utilities, food expenses, servicing debt, insurance and taxes.”

You can subtract any savings you already have from that minimum target and then begin adding savings to make up the gap, the Free Press notes.

The folks at MoneySense set out some of the advantages of having an emergency fund.

A fund, the publication reports, can be put into use when you face:

• “Urgent major repairs (not renovations) to your home or car.”
• “Unexpected medical expenses not covered by universal health care or insurance.”
• “Lack of income due to job loss.”

“Just like the name implies, an emergency fund is meant for emergencies. Unexpected events happen in life: the car breaks down, the fridge stops working or you get laid off during a recession. Without an emergency fund to help cover your expenses, you could end up paying bills with a credit card, relying on payday loans or heavily using your secured or unsecured line of credit,” reports MoneySense.

Having to go that route means your emergency is costing you an additional 19.99 per cent (if paid via credit card) or an eye-popping 442 per cent if paid via payday loan, the publication warns.

Forbes magazine notes that your savings target will be larger if there are more people in your household than just you. Base your monthly expense number not only on your expenses, but all the expenses you cover for everyone under your roof, the magazine suggests.

Finding money to divert to your emergency fund may be as simple as trimming the “non-essentials” you spend money on, such as “clothing, entertainment, and dining out.”

“Go through the list of things you normally spend money on that aren’t actual needs and consider what you can reduce or eliminate,” the magazine suggests. If that doesn’t work, you may need to aim for a higher income.

“Consider ways you can make more money each month. This may include taking on extra hours at work, getting a part-time job or starting a side hustle. Even selling things around the house you no longer need can help. The more money you can bring in, the more you can add to your emergency savings,” Forbes advises.

Forbes concludes by suggesting four steps to help build your emergency savings:

• Make savings automatic – make an automatic deposit to your savings account every pay day.
• Save “windfalls,” like tax returns, rebates and “other unexpected financial windfalls.”
• Use “cash back” apps or cards and direct the money to savings.
• If you are getting tax refunds every year, considering reducing the tax withheld from your pay and adding the difference to your emergency fund.

Writing for GoBankingRates, Caitlyn Moorhead suggests a few more saving ideas for boosting the balance in your emergency fund.

Find a chequing account that also pays interest, and move the interest received to your emergency fund, she writes. Cut back on your cable package and bank the savings, she continues. Be a stickler about sticking to your grocery list, she advises, and develop a meal plan that is based on weekly grocery sales. Bank the extra money.

In fact, you consider your emergency fund to be a bill, she writes. Huh?

“When it comes to financial planning, it’s a lot easier to part with the money you put in savings when you take on the mindset that it’s just another bill. Instead of looking at saving as an optional move, think of it as a mandatory expense like paying rent or your phone bill. That way when unexpected expenses arise, you already have it covered,” she concludes.

We’ll add a few we used when building up our savings. Lottery ticket winnings can be banked. When you roll up your change, you can deposit it in your account. And when you get a payout from your dental or vision insurance, you can pop that into savings.

The same tactics listed in these articles can be used – perhaps once you have built up that emergency fund – to save for retirement. And a great vehicle to speed along that savings journey is the Saskatchewan Pension Plan. You provide the savings, SPP provides the investment expertise, and will grow your hard-earned loonies in their low-cost, professionally managed pooled fund. When it’s time to retire your choices include a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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We frequently write, in this space, about good ideas to help boost your long-term retirement savings.

But what about the opposite – bad retirement decisions that can hurt or hinder your efforts? Using the theory that we often learn the most from making mistakes, Save with SPP scoured the Interweb to drum up some bad retirement ideas to avoid.

Let’s start with the Money.ca website, where Michelle Robertson discusses a half-dozen common retirement planning mistakes Canadians too frequently make.

The first, she explains, is “not having a plan.”

“Driving to retirement with no plan is like a trip to a mystery location with no map. You have no idea where you will end up,” she warns. “A plan shows if you’re investing enough to be ready at your desired retirement age. The more time and clarity you have, the easier it is to reach your goals,” she continues.

And for those who think their house will provide the retirement income they need, she suggests that “you can’t eat your house in retirement.”

“People see their house as an investment. They expect to use its equity in retirement. But, you can’t access your home’s equity if you live in it without borrowing your equity from the bank (for the second time),” she writes.

A third, classic mistake Robertson warns us about is to “take too much debt into retirement.”

“Debt is debilitating at any stage of life, but especially in retirement. It will quickly erode your retirement income,” she explains.

In an article published by GoBankingRates, Yaël Bizouati-Kennedy provides a few more bad ideas to watch out for.

First mistake, the article notes, is “starting your savings journey late.” The article quotes money and financial coach Adeola Monofi as saying “by starting early, you can leverage the power of compounding interest and allow your investments to grow significantly over time. Make it a priority to start saving for retirement as soon as possible, even if it means making small contributions initially.”

Another red flag is underestimating retirement expenses, the article continues. Healthcare costs can rise when you’re older, the article notes, as can the cost of housing, travel, hobbies and other leisure activities.

A third mistake is thinking that Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will be enough to fund your retirement, the article notes.

“While programs like the CPP and OAS provide valuable income, they may not cover all your retirement needs,” Monofi is quoted as stating in the article. She tells GoBankingRates that these government benefits should be augmented by personal savings in “registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), real estate, permanent life insurance and other investment vehicles suitable for your circumstances.”

Last word goes to Canadian Essence, who list, in an article by Ash Kaushik, some of the worst advice people can be given about retirement.

“Invest in only safe options, like bonds,” is one such piece of advice, the article reports.

“Bonds are risk-free, but if you’re obsessed with them – it’s counterproductive. Retiree funds have to keep up with inflation and a well-diversified portfolio comprising stocks can deliver higher long-term returns. Don’t play it too safe and you’ll fall short on your financial expectations,” the article warns.

Another bad bit of advice, the article continues, is that idea that if you haven’t saved enough, “you can always work longer if you’re not ready.”

“You shouldn’t rely on working longer to save money. Unexpected illness, unemployment or a caregiver need can lead to you retiring before you have any choice,” the article cautions.

“Retirement will be just like your vacation,” is our final bit of bad advice presented in the article.

“Retirement sounds simple enough, like a one-week vacation but it’s often not. Even all the free time feels a little unenjoyable if you don’t plan how to remain active, productive and be on track. So, don’t be surprised if you’re expecting a vacation-like lifestyle, but haven’t considered how you’ll spend your time or how you’ll cope with changes in your daily routine,” the article tells us.

Having left full-time work more than 10 years ago, this writer can attest to the truth of the “retirement is like a vacation” comment. It’s more like it is always the weekend, which is still good but a little different than being on a trip.

If you haven’t got going on your retirement savings yet, and don’t belong to any sort of retirement savings plan through your work, there’s an option out there for you that is worth considering – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution pension plan that any Canadian can join.

You decide how much you want to save, and SPP does the rest, investing your savings dollars in a low-cost, professionally managed pooled fund. At retirement, among your options are a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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It’s a tough landscape for saving out there. Higher costs for housing, groceries, fuel, and life in general make it very hard to squeeze out a few bucks to earmark for your post-work future.

However, having been the brother of a very frugal sister, Save with SPP has seen what a little tightfistedness on the spending side can do for one’s piggy bank. Let’s take a look at some frugality tips from the experts.

The Little House Living blog offers up some “frugality outside the box” ideas.

One is to “meal plan for an entire month.” With this idea, you’d not be eating out at restaurants, and would know what to shop for at the grocery store.

Another radical idea – “get rid of the cell phone and go with landline.”

“So few of us truly NEED a cell phone, we’ve just become spoiled to the idea we do. Also, extreme? Get rid of the TV and thus the streaming needs. With all that, do you need internet,” the blog asks.

Wow. That’s extreme frugality!

A final one from this blog that we’ve not seen before is “shop the perimeter of the store… it literally cuts grocerying in half.”

The A Dime Saved blog features some tips that “people laugh at, but actually work to save money.”

The blog suggests making your own condiments. “You’d be surprised at how easy—and cost-effective—it is to whip up your own condiments. Salad dressings, flavored vinegars, or even your own ketchup—once you get the hang of it, you’ll never want to buy those pricey store versions again,” the blog notes. We recall our grandma in New Brunswick making her own mayo, among other things.

What about cutting your own hair, asks the blog.

“For some, the idea of cutting their own hair is terrifying, but with a little practice and the help of online tutorials, you can easily save on salon visits. A trim here and there can make a huge difference, and you might just find you’ve got a hidden talent for it. Worst case? You save money,” the blog explains.

Finally, a more familiar one – grabbing a few toiletries when you stay at a hotel.

“From soaps to toilet paper to tea bags, those small items are already factored into your hotel bill. Why not take advantage of them? It’s one less thing you have to buy when you get home,” the blog concludes.

Finally, GoBankingRates provides a few tips for retirees.

First, the blog suggests, review your streaming subscriptions and cut back. “If you take a close look at your monthly bills, you might be surprised to see how many recurring charges you rack up every month,” the blog warns. There are cheaper and even free streaming options out there, the blog adds.

“Comparison shop,” the blog advises. “Nearly any product or service you’re interested in is likely offered by a number of different vendors, so you can pick and choose the combination of price, service and quality that works best for you.”

As well, retirees who are also empty nesters should consider moving to a smaller house, or an apartment.

“Frugal living tips can go a long way toward saving for retirement or living your best life once in retirement,” the article concludes.

If you are able to squeeze some savings out of your monthly spending, then for sure retirement saving is a good place to direct those loonies to. If you are saving on your own for retirement, take a good look at the Saskatchewan Pension Plan. SPP takes the hassle out of retirement saving by making it simple – you contribute however much you want, and SPP invests it in a low-cost, professionally managed pooled investment fund. At retirement, your options include collecting a lifetime monthly annuity, or the more flexible Variable Benefit.

Check out SPP today!

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We’ve read a ton of books on retirement/saving for retirement/living in retirement, and there’s one common thread that runs through all of them – the need to have a budget (and to stick to it).

Save with SPP decided to search for easy ways to get a budget in place, for those of us who either don’t currently budget or have given up due to fears it will be too complex and difficult.

At the Money Canada blog, writer Sandy Vong advises that if “you consistently look at your bank balance and wonder where the money goes then it’s time to take charge of your funds – and that starts with making a budget.”

“The good news is that it doesn’t have to be scary or time-consuming. But having a budget is critical. A budget gives you a big picture of your spending and saving habits and it’s a great way to take charge of your finances,” writes Vong.

Vong’s budget plan involves five steps – understanding and rating your values, setting your financial goals, tracking income and expenses, creating a budget and then regularly reviewing it.

The “value” idea is a bit unique.

“Values are those intangible measures of a good life. For instance, good health may be a value, as it a fulfilling career, or a place to call home. By starting with your values, you’re able to understand what value you are helping to support when you spend or save your money,” Vong explains.

The budgeting part itself, Vong notes, is fairly simple – track every expense and all of your income.

“Tracking your income and expenses is a simple exercise that takes a few minutes every day, but will quickly show you what your lifestyle is like and what areas you are spending the most on,” Vong notes.

“You can keep track of your income and expenses by using a note-taking app like Evernote.

However, there are more sophisticated budgeting apps such as YNAB (You Need A Budget). Whenever you go to purchase an item, whether online or in-store, record the date, the name of the store and the amount you spent. This way, you will have a full summary of where your money comes in and where it goes out at the end of the month,” Vong concludes.

There are other budgeting strategies.

Writing for GoBankingRates, Caitlin Moorhead explains the 75/15/10 budgeting approach.

“The 75/15/10 rule is a simple way to budget and allocate your paycheck. This is when you divert 75 per cent of your income to needs such as everyday expenses, 15 per cent to long-term investing and 10 per cent for short-term savings. It’s all about creating a balanced and practical plan for your money,” she writes.

She sees the 15 per cent as going for your future.  “By putting 15 per cent of your income into investments like stocks or real estate, you’re not just saving — you’re growing your wealth,” she explains. The 10 per cent should be used to build up an emergency fund that can cover up to six months of expenses, she concludes.

Another, somewhat similar approach is the “50/30/20 method,” reports Linda Howard of The Daily Record.

In this approach, she explains, 50 per cent of your money is earmarked for “essential spending such as bills and food shopping,” with 30 per cent going to fun “non-essentials, such as eating out and style and beauty,” and the last 20 per cent going into savings.

The great Gail Vaz-Oxlade has long proposed a “cash jar/envelope” budgeting system, covered via the Smart Canucks blog.

According to the blog, Vaz-Oxlade’s approach “recommends that of your total income, 35 per cent goes to housing, 15 per cent to transportation, 25 per cent on `life’ (everything from groceries, pets, kids etc.), 15 per cent to debt and 10 per cent to savings.”

As we all remember from her many TV shows, she encouraged people to actually set aside cash for each category in jars or envelopes. If there’s no money left in the jar, you need to wait until the next month.

You can figure out your own budget approach, but the chief idea is to spend less than what you earn. To do that you need to see what you are making and know what your bills add up to.

If you are developing a budget, be sure to put some money away for long-term savings, such as retirement. If you don’t have a retirement program at your workplace, consider the Saskatchewan Pension Plan as your savings partner. Open to any Canadian with registered retirement savings plan room SPP is like an RRSP that has, when you retire, built in options to turn savings into income. You can, for example, convert your account balance into a monthly lifetime annuity payment. Or you can select the more flexible Variable Benefit.

Check out SPP today!

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A new year – 2025 – is upon us. Traditionally, it’s a time for making resolutions – maybe to hit the gym more often, to finally quit smoking, and so on.

Save with SPP, often with money on the mind, took a look around to see what sort of resolutions people are considering making when it comes to saving money.

The folks at the GoBankingRates blog have a few ideas; the first is to bump up your retirement savings by one per cent.

“One simple way to improve your long-term finances with minimal effort is to bump up your retirement plan contributions in small increments,” the blog explains. Let’s say you are earning $50,000 and contributing five per cent towards a retirement savings account. In Canada, that could be a registered retirement savings plan (RRSP), Tax Free Savings Account (TFSA), a Saskatchewan Pension Plan (SPP account) or any other savings vehicle where you control how much goes in.

Bumping that up by just one per cent means “you’ll be kicking in an extra $41.67 per month,” the blog explains. “That’s a money-saving resolution you could easily keep,” the blog continues.

Other ideas in this article include starting an emergency fund and the golden rule of “eat all the food in your house” to avoid food waste.

“Having an emergency fund is essential for keeping yourself out of debt when you face unexpected expenses,” the blog advises. Start small – maybe put away $100 a month. “Within a year, you’ll have $1,200…. enough to cover most short-term emergencies you’ll face.”

“If you want to save money… simply check your refrigerator every day for what you have and what might be going bad soon and eat that instead of picking up something new from the grocery store or a restaurant,” the blog advises. This “eat all the food in your house” rule is one our mother used to swear by; we would “use up” the food in the fridge before going out to buy more groceries, avoiding waste.

The Positively Frugal blog over in the UK offers up a few more ideas.

Getting out of debt is the blog’s number one resolution.

“Without a doubt, one of the absolute best financial goals to make this year is to get rid of your debt once and for all! I am a huge proponent of being debt free — not only is it good for your finances, but it’s good for your psyche,” the blog tells us.

“This year, challenge yourself to lose the burden of some of your debt. If you want to take it up a notch and brave the task of setting one of the best long-term financial goals, set a resolution to become completely debt free,” the blog advises.

Other suggestions – in the New Year, start paying off your credit cards in full each month (if you haven’t already begun doing this). “The amount you will save in interest and fees can add up to a nice little pile of cash, which can be used to kick start a savings account,” the blog suggests.

Another money-saving resolution offered up by the blog is to try and eat out less.

“If there is one area where most people can shape up their finances, it’s on the amount they spend eating out,” the blog notes. “You don’t have to completely eliminate eating out, but you can make a money resolution this year to spend less on the meals you eat at restaurants,” the blog adds.

Finally, the gang at Nerdwallet provide us with a few retirement-related savings resolutions.

First, the blog recommends, you should set a “goal retirement age.”

Figuring out when you want to retire will help you to estimate how much money you’ll need to have saved up by the time that day rolls around,” the blog tells us.

“Let’s say you’re 30 years old now and you want to retire by age 65. That gives you 35 years in which to save. So how much money will you need to retire at age 65,” the blog continues.

“A common rule of thumb is to aim to save at least 70 per cent of your annual pre-retirement income. Then, multiply this number by 25. Why? Because another rule of thumb says it’s a good idea to plan for 25 years of life after retirement — perhaps more if you retire early. Finally, you’ll want to subtract any pension income you plan to receive,” the blog states.

The blog also suggests that you automate your retirement savings.

“Once your (retirement saving) plan’s in place and accounts picked out, your next step should be to automate contributions. This ‘set it and forget it’ way to save ensures you’re constantly putting money towards your retirement plan with no little effort required on your part. It’s perfect for those who might be forgetful or be tempted to spend extra funds if they’re not allocated immediately,” the blog advises.

“Automating contributions to your retirement accounts should be easy, with financial institutions allowing you to set it up online. You can choose how much you want to contribute and at what frequency,” the blog adds.

Final word from Nerdwallet is to get started – today!

“It’s never too early to start thinking about retirement. The sooner you start, the more time you’ll have to save, and maximize those savings through registered plans, investments and tax-free accounts,” the blog concludes.

One savings tip we will add is one learned from one of the books reviewed for writing this blog. Let’s say you look at your existing budget, and find there is no room to save anything. The book suggested taking one per cent of your take-home pay off the top and putting it into savings, then managing the bills. Once you’ve managed that for a while, bump it up to two per cent, and so on. This one worked for us back when we were still grappling with a mortgage and debt.

The Saskatchewan Pension Plan is a defined contribution pension plan open to any Canadian with available RRSP room. Like an RRSP, your contributions to SPP are tax-deductible. SPP takes your savings and invests them in a low-cost, professionally managed pooled fund. At retirement, SPP members can choose among such options as a monthly lifetime annuity payment or the more flexible Variable Benefit.

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The idea behind savings has always been to put a little money away today, and in the future, you’ll be covered for any little emergency that arises.

But these days, people are raiding their savings to pay for day-to-day, non-emergency expenses. Is there anything we can all do to prevent that? Save with SPP took a look around to see what others think.

The GoBankingRates website offers up a number of interesting strategies.

One idea is to put your savings in “a separate, online savings account” that “is not directly linked to your chequing or overdraft, or that can be used with a debit card,” the article suggests. We have an account with Alterna Bank that isn’t hooked up to any card, and yes, it’s a piggy bank that’s sort of hard to get at.

A similar idea is to “make savings inaccessible,” perhaps by putting them into a registered savings account (such as a registered retirement savings account) or brokerage account where you can’t get the money out immediately, or without a penalty or tax consequences, the article explains.

At the How To Money blog, one thought is to “focus on your goals,” and to remember why you opened the savings account before dipping into it.

“Do you want to own a home? Become financially independent? Finally go on that big trip you’ve always dreamed of,” the blog asks. “Having a bigger goal to weigh your purchases against can help you think twice before transferring money out of your savings, or making an impulse buy. Once you have a solidified goal, you can think about just how much you could accomplish if you cut out mindless spending,” the blog continues.

A second idea recommended by the blog is creating “sinking funds,” or essentially pre-paying, for things you know you have to spend on.

“A sinking fund for gifts is a common example. We all know we need to buy gifts at the end of the year for the holiday season. But if we don’t plan ahead, we won’t have the money to buy anything. That leads to dipping into savings. Instead, if we create a sinking fund and contribute $50 per month into it starting each January, we’ll have $550 by the end of November for gifts,” the blog explains.

Okay – make the money hard to get at, remember why you’re saving before dipping in, and create little dedicated “sinking funds” to prepay for known, upcoming expenses (again, instead of dipping in.) Are there other ways to work this?

The Balance blog suggests an oldie-but-goodie – using cash.

“Set up auto debit for all your bills and savings contributions, then see how much money you have left over. That’s how much you have to spend. Take out that amount each week or month, and when it’s gone, it’s gone. When you are using cash only for your spending, it takes a lot more work to overspend since you have to actually take the money out of the bank,” the blog suggests.

Another good idea, the blog adds, is to set up an emergency fund – for real emergencies – rather than dipping into your long-term savings.

“If you have a separate emergency fund to handle unexpected expenses, then you will no longer need to dip into your savings account to cover unexpected expenses like car repairs or medical bills,” the blog explains. “Although using your emergency fund may seem like you are dipping into savings, you really are not because you have earmarked these funds ahead of time to cover these expenses.”

The takeaway for all this is that your savings cookie jar should be as hard to get to as possible, so you can’t dip into them for an impulse purchase.

Members of the Saskatchewan Pension Plan can’t dip into their accounts for non-retirement purposes, because SPP is a “locked-in” pension plan. You can’t access the funds until you are age 55 or older, when you are deciding what you are going to do to turn your SPP savings into income. Options include receiving a monthly lifetime annuity or the more flexible Variable Benefit.

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In the U.S., women have “just one-third of men’s retirement savings”

South of the border, “women… have saved just a third of the amount that men have set aside for retirement, setting up a potential crisis among female retirees,” reports Voice of America.

The VOA article cites new research from Prudential Financial that found “on average, men had saved $157,000 USD for retirement, while women had put aside only $50,000 USD.”

There are a number of reasons for the gap, Caroline Feeney of Prudential tells VOA, including the fact that compared to men, “women were three times more likely to be focused on providing for their families and children than on saving.”

“`The financial futures of certain cohorts – such as women – are especially precarious,’ Feeney states in the article. `Women have a more challenging time saving for retirement,’ she adds, citing inflation, housing prices and changes in tax policies as the main barriers.”

Not surprisingly, 46 per cent of men said they are looking forward for retirement, compared to just 27 per cent of U.S. women polled, the article notes.

A story from GoBankingRates, commenting on the same survey results, says there are challenges ahead for both men and women on the U.S. retirement front.

“While women find themselves in a more precarious situation than men, people of both genders have a lot of saving and investing to do over the next 10 years. With just a single decade until retirement, the average 55-year-old American has only $47,950 in median retirement savings. Additionally, about one-third of 55-year-olds have postponed retirement due to high inflation these days,” the article notes.

“Probably the scariest data point is that a stunning 71 per cent of 55-year-olds have not calculated how many years their current retirement savings will last them — and two-thirds of this group expect they’ll outlive their savings,” the article adds.

GoBankingRates strongly recommends saving for retirement “early and often” to prevent a shortage of money in your golden years.

Even if you start saving late, after age 55, “it’s never too late to start aggressively saving for retirement. You’ll have a lot of catching up to do, but better late than never. Ultimately, you’ll need to save a lot more every month to ensure you have enough funds to call it quits at work. You might also want to consider working past age 65 to ensure a financially sound retirement.”

Workplace pension plans are a great way to make saving for retirement automatic, but they aren’t always portable – you can’t always continue to be in one employer’s pension plan if you change jobs and move to another.

A portability solution is the Saskatchewan Pension Plan. Since you can belong as an individual, you can continue to make contributions even if you change employers. Rather than ending up with several small buckets of retirement savings, you’ll end up with one, larger bucket – and the options of an SPP lifetime monthly annuity payment, or the flexible Variable Benefit, at retirement.

Check out SPP today!

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