Tag Archives: Kelley Keehn

Jul 8: Best from the blogosphere

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

Caring for parents hits retirement savings bottom line

New research has found that 14 per cent of Canadians with a living parent “are expecting the impact of helping their parents financially will mean delaying their own retirement,” reports Wealth Professional.

A further 12 per cent say caring for parents will prevent them from paying off debt, the magazine notes, citing research carried out by Leger for FP Canada and Chartwell Retirement Residences.

Other fears connected with parental care include having to take time off work to look after parents (a concern for 13 per cent of respondents), or having to quit work entirely to provide care (a fear for five per cent of those surveyed), the magazine reports.

For sure, having a parent who develops a serious illness and can’t live on their own anymore can throw a wrench in any plan. Is there much that can be done about it?

According to Sharon Henderson, VP of Marketing & Communications for Chartwell, an important thing to do is to talk with the parents about the possibility of a future health downturn.

“One of the biggest concerns we see in retirement living is the avoidance of financial conversations between adult children and their senior parents. This can create uncertainty and prevent proactive planning for support later in life,” she states in the article.

It’s important to go over the potential costs of long-term care, and to be aware of what measures the parents have put in place to help pay for it, the article advises. As well, there are tax credits available if you are acting as a caregiver, the article notes.

As Kelley Keehn of FP Canada notes in the article, “the senior years can be financially challenging, and as a result, many older Canadians turn to family members for support. That can cause a significant financial strain, and as Canadians live longer, that strain will only grow.”

Some great things about retirement

While it’s a safe bet that no one’s retirement will be completely smooth sailing, there are good things about it that we must not lose sight of, reports US News and World Report.

For starters, “a weight is lifted from your shoulders when you quit the rat race,” the article notes. There’s more time for movies and TV. You can try new things, join new clubs, and meet new people. And if you miss the routine of working, you can still do it part-time, the article suggests. There’s loads more time for family and friends, and to “give back” via volunteering, the article notes.

Other ideas include travel, enjoying the “time to do nothing,” and generally doing what you want instead of what others want you to do, the article concludes.

Whether it’s caring for a relative or doing your own thing, retirement is a time of life where you’ll appreciate having money. Sure the government provides some, but if you don’t have a workplace pension, or you want to supplement what it provides, consider saving on your own via the Saskatchewan Pension Plan. You can start small, you can ramp up your contributions as your income increases, and when it’s time to collect your savings you can receive it as a lifetime monthly pension. Check them out today!

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

Have you committed financial infidelity?

My husband and I joke that it would be pretty hard for one of us to make a major purchase without the other finding out because all our accounts are online and both of us “visit” our money frequently. Also, our Capital One MasterCard has an annoying but useful safety feature that generates an email to each of us each time a charge is posted to our account.

However, an online poll conducted by Leger for Credit Canada and the Financial Planning Standards Council (FPSC) earlier this year revealed that 36 % of Canadians surveyed have lied about a financial matter to a romantic partner, and the same number of participants had been victims of financial infidelity from a current or former partner. Furthermore 34%  of those polled keep financial secrets from their current romantic partner.

Kelley Keehn, a personal finance educator and consumer advocate for the FPSC, which helped create the survey told the Toronto Star that, “Financial infidelity is generally defined as dishonesty in a relationship when it comes to money, but she noted that the term is vague and it requires you (as a couple) to define what that means.”

“If you have separate accounts in your relationship and you both discussed openly that your money is your money and their money is their money, and you’re free to do anything that you want, then spending and saving and not telling the other person wouldn’t be an infidelity,” she continued.

Other survey results reveal that:

  • Participants aged 18 to 34 were more likely to be victims of financial infidelity — at 47% — than those aged 65 and older, at 18%.
  • Gender and income do not play a significant role.
  • 35% of men surveyed and 37% of female participants said they experienced financial deception from a partner.

When asked about the worst forms of financial deception they experienced from a former or current partner, common offences cited were:

  • Running up a credit card without informing a partner.
  • Lied about income
  • Made a major purchase without telling me.
  • Went bankrupt without informing me.

Financial infidelity doesn’t get as much press as the other kind of infidelity but it can destroy your marriage. In fact, a 2014 BMO poll revealed that 68% of those surveyed say fighting over money would be their top reason for divorce, followed by infidelity (60%) and disagreements about family (36%).

Blogging on The Simple Dollar, Trent Hamm offers Ten Red Flags of Financial Infidelity and What to Do About It. He concludes:

Financial infidelity can be overcome, of course, but it requires honest effort from both members of the relationship. Accusations won’t solve the problem, nor will anger. It takes time, it takes communication, and it takes calmness. If you can’t bring those to the table yourself, you are a big part of the problem. Moving forward isn’t about winning or losing. It’s about finding a new direction that works for both of you.”

****

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.