Majority of Canadians surveyed fear they will never retire: HOOPP and Abacus survey

A surprising 59 per cent of Canadians “believe they will never be able to retire due to their financial situation,” reports Steven Brennan of Money Canada, citing recent research from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data.

As well, the article reports, 66 per cent “of unretired Canadians now expect they will have to continue working after retirement to make ends meet,” and nearly half – 49 per cent – “are worried about outliving their savings.”

“These worries are especially pronounced among renters and homeowners facing mortgage renewals at higher interest rates. For many, homeownership is no longer the clear path to a secure retirement that it once seemed,” the article adds.

Given these concerns, it’s not surprising that the research found favourable views towards workplace pensions, particularly the defined benefit (DB) model which provides a guaranteed lifetime monthly benefit, the article continues.

“Canadians continue to see DB pensions as the most reliable foundation for retirement security. Nearly nine in ten survey respondents (88 per cent) said they would willingly contribute nine per cent of their salary — if matched by their employer — into a DB pension plan in exchange for guaranteed lifetime income in retirement,” the article notes.

“Support for pensions was consistent across age groups: 82 per cent of those aged 18 to 34, 88 per cent of those 35 to 54, and more than 90 per cent of those 55 and older all agreed they would opt in if given the chance,” the Money Canada article tells us.

A “societal benefit” is seen by those surveyed as being possible via improved access to workplace pension programs.

“More than 80 per cent believe it is in the country’s best interest for more people to have access to better retirement savings, and nearly three-quarters say companies could afford to offer workers good pensions if they chose to,” the article explains.

There’s no question that belonging to a pension plan, particularly one where the employer also contributes, is one of the best ways to build retirement savings.

But if you don’t have such a plan, how much should you be saving? The Wealth Awesome blog provides some savings targets, which were originally devised by Fidelity Canada.

By age 30, you should have saved one year’s salary, the blog suggests. By age 40, you should have three years’ salary in your nest egg. At 50, it’s up to six years, and by 60, it’s eight years’ salary, the blog reports.

If you’re saving on your own for retirement, a great partner is the Saskatchewan Pension Plan. With SPP, you decide how much you want to contribute each year – you can start small and ramp up as your income grows. You can also transfer in any amount from any registered retirement savings plans (RRSPs) you may have.

If you are looking for a program that provides guaranteed income, then SPP is the right place. SPP offers a variety of annuity options – all of them provide you with income for life, some provide income options for a surviving spouse or beneficiary. SPP also offers the more flexible Variable Benefit option.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Top retirement countries for Canadians

The True North is, as we all know, Strong and Free, but can be cold in the winter, and expensive to live in.

So the folks at Money Canada have put together a list of the top countries Canadians might want to move to in retirement.

“When determining the top 12 best places to retire in the world, we considered factors like the cost of living, political stability and infrastructure, healthcare quality, safety, things to do and see and proximity to Canada,” the article begins. “We also looked at the ease and requirements involved in getting a retirement visa/long-stay visa. When doing our research, we consulted a variety of governmental sites, as well as local and international websites.”

At the top of the list is Panama.

“Panama is a wonderful place to retire, thanks to its unique combination of modern amenities, affordable cost of living, fascinating culture and tropical beauty. The country is especially attractive to those who prize an active lifestyle thanks to an abundance of outdoor activities ranging from hiking and birdwatching, to surfing and snorkeling along the coast,” reports Money Canada.

Portugal, the article continues, “boasts plenty of sunshine, affordable living costs and incredible cultural assets. The Algarve region, in particular, is popular with retirees for its beautiful beaches, charming towns and laid-back lifestyle.”

In Thailand, “few can resist the destination’s beguiling mix of modern amenities and ancient attractions and traditions.” France, the article enthuses, “has it all: a highly regarded food scene, ancient, atmospheric villages brimming with history, one of the most storied capital cities in the world and a never-ending selection of highly acclaimed museums and galleries to whittle away the hours.”

Mexico offers “proximity to Canada…  (a) temperate climate and (a) lower cost of living. Mexico is a top pick for Canadian citizens of retirement age,” Money Canada reports. Beautiful Malaysia is a country where “the cost of living is very low, healthcare is top notch and housing is affordable.”

Italy “offers an enviable mix of culture, awe-inspiring landscapes and affordability,” and Costa Rica “is well-known for its unparalleled natural beauty that showcases white-sand beaches, verdant rainforests, jaw-dropping volcanoes and acclaimed national parks.”

Rounding out the list are Spain, “with its delightful Mediterranean climate,” Greece, “one of the best places to retire in the world on a budget,” Switzerland, which boasts “one of the highest standards of living in the world,” and Ecuador, which “boasts some of the most singular and breathtaking landscapes in the world, including Galapagos, a world UNESCO site.”

It’s always nice, especially when you are shovelling the walkway in mid-January, to think of tropical weather in faraway lands. But whether you travel in retirement or stay put here at home, you’ll need some savings to live on.

The Saskatchewan Pension Plan is an open, voluntary defined contribution plan that any Canadian with registered retirement savings plan room can join. A feature of SPP is that you can consolidate any other RRSPs you have within SPP. Rather than having bits and pieces of retirement income from multiple sources when you retire, your income will all come from one place.

SPP’s retirement income options include a monthly annuity payment for life or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Is the “buy Canadian” movement having a positive impact?

The whole issue of the trade war with the U.S. has prompted many of us to focus on buying made in Canada goods and services wherever possible.

Save with SPP checked to see how this idea is going, and what benefits it may be bringing.

Writing in Retail Insider, Mario Toneguzzi cites a recent report from NielsenIQ that stated “retailers and brands, take note—this is more than a moment. It’s a mindset. And it’s reshaping what loyalty, value, and national identity look like in the Canadian aisle.”

The article points out that “nearly half of Canadians are taking a stand” on buying Canadian or avoiding American brands. “From boycotting U.S.-made goods to choosing Canadian products even when they’re not the easiest or cheapest option, shoppers are putting their wallets where their values are,” the article adds, again citing NielsenIQ information.

There are economic benefits to the movement, reports Money Canada.

“A report by BMO economist Robert Kavcic suggests that the `Buy Canadian’ trend could add as much as $10 billion annually to Canada’s economy. This shift in consumer behavior is not just patriotic — it’s becoming a meaningful source of stimulus for the Canadian economy. Kavcic estimates that a modest shift in spending toward Canadian goods could generate $6 billion in value. With more than half of Canadians saying they intend to buy Canadian-made products in response to the trade conflict with the U.S., the movement has become a potent economic force,” the article notes.

In the grocery aisle, the article continues, “the `Buy Canadian’ movement represents both a business opportunity and a chance to support local farmers and producers.” As well, the article adds, “with more Canadians choosing to buy local, it seems that the movement is not only reshaping how Canadians shop but also how they think about their role in the economy.”

The Toronto Star reports that Canadian chocolatier Purdys has made its products available in a Canadian grocery store for the first time in its 118-year history, all thanks to increased buy Canadian demand.

“Since about January, we really noticed … people either remembered that we are a Canadian brand and always have been or were interested in learning more about Canadian brands and how they could support Canadian companies through that uncertain time,” said Kriston Dean, vice-president of marketing and sales at Purdys, tells the Star.

“Their interest manifested in a more than 200 per cent increase in traffic to Purdys website and a whopping 300 per cent spike in searches about whether the brand is Canadian,” the article adds.

The CBC reports on a small farm business in Quebec has seen “a spike in sales” thanks to the movement.

The Agricola Co-operative Farm in Petite Nation, Que. “grows vegetables, herbs and cut flowers.” Sales were up more than 20 per cent over last year, the broadcaster reports.

“It’s a way of getting your groceries, but I think it’s also that idea of [how] community supported agriculture is also a way of participating a bit more directly in the local food system,” the farm’s Natalie Childs tells the CBC.

Did you know that the Saskatchewan Pension Plan is a voluntary retirement savings program that is open exclusively to Canadians with registered retirement savings plan room?

With SPP, you decide how much you want to save, and we do the rest, investing your hard-saved loonies in a professionally managed, low-cost pooled fund. At retirement, your income options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit Option.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

There’s no question we are living in uncertain times – how will the trade war and its tariffs impact investing and Canada’s job markets?

We may not yet know exactly where things will land, but – according to a Money Canada piece by Nicholas Sokic – Canadians “are staying diligent in saving for retirement.”

In fact, he writes, citing a report from Sun Life, retirement savings contributions are, on average, at $9,500, “a six per cent increase from 2022.”

“The ‘buy Canadian’ sentiment that gained popularity earlier this year may also be having an impact on how people are investing their money. While some are adjusting their finances, it’s encouraging to see that they aren’t reactively pulling their money out of the market,” Sun Life’s Dave Jones, senior vice-president, group retirement services, states in the article.

“In the first quarter of 2025, members moved their money out of U.S. equity funds at the highest rate witnessed since the beginning of the COVID-19 pandemic. While more people are reducing their risk exposure, they are not withdrawing their money from their plans. Withdrawal rates remain stable when compared to past years,” the article continues.

Other findings outlined in the article:

• 70 per cent of plan members “who engaged with an advisor” were seen as being more likely to take action with their finances than those without such help.
• 42 per cent of plan member balances are in “target date funds,” a type of investment that becomes more conservative (and less exposed to equities) as the member ages.
• Workplace pension plan members are, on average, retiring “two years earlier than the average Canadian.”
• Average workplace pension plan balances in the Sun Life survey were at $94,220.

The idea that Canadians are saving more these days is also captured in an article on the Statistics Canada website.

“Recent analysis from Statistics Canada on the `third pillar’ of the retirement income system — in addition to government pension plans — hows that there has been an increasing share of families’ contributions to one or more of the three registered savings accounts: Registered Pension Plan (RPP), Registered Retirement Savings Plan (RRSP), and the tax-free savings account (TFSA),” the article begins.

In 2009, just over half of Canadian families contributed to one or more of these savings vehicles – a rate of 52.3 per cent,” the article continues. By 2022, that percentage had jumped to “nearly three in five families (58.1 per cent),” the article adds.

TFSAs increased in popularity in the 2009 to 2002 period, while contributions to RPPs and RRSPs “stayed flat, or declined over the same period,” the article notes.

These articles show, it would seem, that Canadians see that saving for retirement is important, even if the times are challenging.

If you have a retirement savings program through your workplace, be sure you are signed up and contributing – often there can be an employer match.

If you don’t have a workplace plan and aren’t sure how to go about investing for retirement on your own, the Saskatchewan Pension Plan may be just the ticket. With SPP, you decide how much you want to save, and SPP’s team does the rest. Your savings dollars will be invested in a low-cost, professionally managed pooled fund.

When it’s time to depart from the workforce, your options for turning your savings into income include getting a lifetime monthly annuity payment from SPP, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Saskatoon cited as the number one place to retire in Canada

“It’s no secret,” writes Sandra McGregor for Money Canada, “that Canada is considered one of the best places in the world to live.”

Factors like “incredible landscapes, universal healthcare and a multicultural society that welcomes people from all over the world” make Canada “the perfect place to call home.”

However, where in Canada is the best place to retire? McGregor’s list of the 16 top places focuses on “the cost of living… weather, quality of life and access to amenities.”

At the top of the list is the city of Saskatoon!

“Saskatoon is a vibrant city with a strong sense of community, scenic parks and a thriving arts scene. Though it’s not the capital (Regina is), it’s actually the largest city in the province. Its affordable housing makes it among the best places to retire in Canada, income wise,” she writes.

The runner-up is St. John’s.

“St. John’s has a great culture and food scene, as well as a breathtaking harbour that offers occasional whale and iceberg sightings,” reports McGregor.

Rounding out the top three is another east-coast location, Charlottetown.

“Charlottetown is an incredibly picturesque city with a strong sense of community, excellent culinary offerings and a thriving arts scene, making it one of the best places in Canada to retire,” she notes.

Goderich, Ont. is in fourth spot. “Goderich is a charming town on the shores of Lake Huron, known for its beautiful beaches and scenic parks. It’s often dubbed the `prettiest town in Canada,’” she writes.

In fifth is Parksville, B.C. “Parksville is a popular retirement destination on Vancouver Island, known for its beautiful beaches and scenic parks,” McGregor reports. In sixth place is “St. Catharines, a charming city in Ontario… a popular retirement destination known for its greenspaces, culture and affordable housing options. It’s also just next door from one of Canada’s largest and most acclaimed wine regions.”

The list continues with Penticton, B.C., which offers “an appealing blend of affordability, pleasant weather and a high quality of life.” Calgary boasts “beautiful parks and outdoor recreation opportunities.” Ontario’s Windsor is ranked next for its “cultural attractions and affordable housing options,” as well as the warmest weather in the province.

After Collingwood, Ont., Cape Breton, N.S. and Montreal comes Saint John, N.B., offering “a low cost of living, beautiful waterfront views and a growing job market.”

Kelowna, Canmore and Victoria round out the list.

Even if you don’t relocate in retirement, all of these communities are worth a visit. We are fortunate to live in such a vast, beautiful country.

Retirement, of course, requires a bit of forethought. You’ll need to set aside some money in your younger years to look after the older you.

If you don’t have a retirement program through work and are nervous about investing on your own, consider joining the Saskatchewan Pension Plan. SPP is open to any Canadian who has available registered retirement savings plan room. You decide how much to contribute to your account, and SPP does the rest, investing your savings in a low-cost, professionally managed pooled fund that has boasted steady returns since its inception in 1986. At the end of work, you can choose to convert your savings to a monthly lifetime annuity or withdraw money more flexibly with our Variable Benefit option.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Don’t trap yourself in these seven pre-retirement “money drains”

Those of us who have reached a certain vintage may remember the yuppie-era boast that “whoever has the most toys at the end is the winner.”

Not so fast, writes Vishesh Raisinghani for Money Canada.

“You probably know the importance of retiring with a hefty, well-diversified portfolio of assets. But what if you’ve spent some of your money accumulating things that look like ‘assets’ but are actually hidden liabilities,” he asks.

He then identifies these “tempting, but deceptive money drains that many people trap themselves in before retirement.”

Brand-new cars: “Splurging on your `dream car’ can be the ultimate temptation,” he writes. But a new car loses 30 per cent of its value after about two years, he continues. “Buying a modestly used car at an affordable price is a better way to secure your financial future,” he suggests.

Timeshares: Buying a timeshare to get winter access to a sunny beach is another tempting thought, he writes. “Timeshare ownership involves steep initial costs, recurring maintenance fees, low resale potential and rigid usage schedules,” he points out.

“On top of that, the secondary market is notoriously poor, and many owners struggle to exit their agreements. Sales tactics can be aggressive, and the contracts themselves are often complex and difficult to navigate,” he warns.

Luxury collectibles: “Luxury consumers are a fickle bunch and what’s considered valuable today may not be as valuable by the time you retire,” he notes. So, such items as “vintage cars, designer handbags and luxury watches” may not turn out to be the profitable investment you hoped for.

Buying a mansion or home upgrades: Canadians, he writes, collectively own a whopping $4.7 trillion in home equity. But, he warns, you can “go overboard” with home ownership. “Buying a house that is far beyond your budget or too big for your needs can make it tougher to pay off the mortgage or maintain the property when you’re on a fixed income. It’s also a good idea to avoid excessive and frequent renovations to try and add value to the property,” he notes.

Lottery tickets or speculative investments: Spending money on lottery tickets or “unproven and speculative investments” is particularly bad for “when you’re older and approaching the end of your career,” he writes. Instead of trying to get rich quick, get rich slow with “blue chip dividend stocks, bonds, or gold.”

Multiple or excessive mortgages: Those of us with more than one mortgage, or a big one on a rental property, should realize that as we age, our “capacity for risk is much lower,” he warns. “With this in mind, consider lowering or paying off all the mortgages on your rental properties. If you can’t, sell a few units to pay off the loans on others in your portfolio,” continues, adding that as “a retired landlord, you can’t afford a sudden housing market crash or interest rate volatility.”

These are all good points to keep in mind when you are entering your fixed-income years.

It’s important, as well, to realize that the more you put away for retirement today – in the now – the more wiggle room your future you will have to handle rising costs. If you don’t have a retirement plan at work and are spinning your wheels on saving for retirement, a trusty partner is the Saskatchewan Pension Plan. With SPP, all you have to do is contribute any amount (up to your registered retirement savings plan limit) each year.

SPP will invest your savings dollars in a professionally managed, low-cost pooled fund. When it’s gold watch time, your SPP income options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Five “big things” that disappear once you’ve retired

Many of us, when looking forward to retirement, imagine the things we will no longer need to worry about – long commutes in rush hour traffic, endless meetings, complex office politics, expensive parking. It’s a long list.

But, writes Chris Clark for Money Canada, in addition to things you won’t miss, there are some “big things” you will miss once you’re retired.

First, notes Clark, is “the financial safety of your paycheque.”

“The most immediate change when you retire is the loss of your steady income. For years, your paycheque arrived on a set schedule. In its place, you’ll rely on withdrawals from your registered retirement savings plan (RRSP), Tax Free Savings Account (TFSA), Canada Pension Plan (CPP), Old Age Security (OAS) and any other savings, pension plans or investments you’ve built up over time,” Clark writes.

This is so true – instead of one biweekly or semi-monthly paycheque, you’ll be getting multiple sources of income that may come on different days, primarily monthly.

Clark observes that most of us find this transition “jarring,” and suggests – for those of us living on a lump sum of savings – that we be cautious about picking a sustainable withdrawal rate.

“The traditional “four per cent rule” has been debated in recent years, with some experts suggesting a lower withdrawal rate for longevity,” Clark writes.  “Diversifying income streams through investments, rental income or part-time work can also help ease financial stress,” the article continues.

A second thing that disappears when you retire, Clark notes, is “your risk tolerance.”

When you’re young and have years – or decades — to go before retirement, and the likelihood of raises and bonuses on the way, “taking risks with investments can feel manageable because you’re still earning and contributing.”

“But in retirement, market downturns have a bigger impact on your portfolio and your ability to withdraw funds safely. This is known as the `sequence of returns risk’ — when early withdrawals during a market downturn deplete savings more quickly than anticipated,” Clark warns.

While you can minimize downsize risk by increasing your portfolio’s exposure to “guaranteed investment certificates (GICs) and bonds,” Clark notes that trying to eliminate all risk “can lead to another risk – outliving your money.”

Clark recommends a balanced approach, with exposure to both equities and bonds, in retirement.

For many of us, a thing that disappears when we retire is our “sense of purpose,” Clark notes.

“A study by the National Library of Medicine found that lacking a sense of purpose can lead to depression, substance use and self-derogation. Social isolation is also a growing concern, particularly for men, who tend to have fewer social connections outside of work; The Government of Canada states how 30 per cent of seniors are at risk of becoming socially isolated,” the article notes.

Plan “beyond your finances,” advises Clark. “Volunteering, pursuing hobbies or even taking on part-time work can help create structure and fulfillment,” the article adds.

Another factor that can become very significant as you age, is the fact that your employer-sponsored benefits may end when you retire, writes Clark.

“Prescription drugs, dental care, vision care and long-term care costs can add up quickly. A report from Innovative Medicines Canada found that nearly 70 per cent of Canadians — or more than 27 million — rely on employer-sponsored health plans for supplemental coverage.”

Clark recommends either setting aside money in advance for expected healthcare costs in retirement, or looking for your own provider; the article recommends the use of PolicyMe, a tool to help connect you with benefit coverage.

Last and importantly, one thing that changes when you retire “is your spending habits,” Clark tells us.

“Many retirees enter what financial planners call the `retirement honeymoon’ phase — travelling more, dining out frequently and taking on expensive hobbies. While this newfound freedom is well-deserved, it can lead to financial trouble if spending isn’t balanced with long-term needs,” Clark notes.

This is so true. Many feel retirement will be like being on vacation forever. But that would be crazy expensive, like travelling for 52 weeks at a time. We feel retirement is more like it permanently being the weekend. You have to consider that your money will have to last you a long time – many of us are now retired for as long as we worked.

Members of the Saskatchewan Pension Plan have a retirement option that will prevent them from running out of savings in retirement. SPP members can choose to convert some or all of their savings into a life annuity. This means you’ll get a payment on the first of the month for as long as you live. Depending on what type of annuity you choose there may also be benefits for a surviving spouse or beneficiary.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Retirement savers can do a big “catch up” in their 50s

By the time you’ve reached your 50s, the kids are usually fully educated and gone from the back room, your mortgage is close to paid off, and you’re making the most you ever have – a perfect time to catch up on those neglected retirement savings.

Writing for Money Canada, Romana King takes a look at the “catch up” years – your 50s.

“According to a data report released by Money.ca, the average retirement savings for Canadians aged 55 to 64 is $833,696 — a significant increase compared to the $183,067 saved by those in the 45 to 54 age range,” she writes. “This sharp rise suggests that many Canadians focus heavily on increasing their retirement contributions in their 50s in an effort to close the gap before they retire,” she continues.

So, she explains, if you haven’t actually got around to retirement saving and you have hit the big 5-0, don’t get stressed. “If you’ve fallen behind on your retirement savings, don’t panic — there’s still time to make meaningful progress towards this goal,” she notes, reassuringly.

Her article shows a recent social media post by a 49-year-old woman who confesses that she is “almost 49 and I have zero retirement savings. No exaggeration. Absolutely nothing…. And I know I can’t be the only one.”

It’s not a surprise, continues King, that those among us who are middle-aged aren’t finding a lot of spare dollars to tuck away for their golden years.

“Many middle-aged Canadians report feeling unprepared, often due to competing financial responsibilities such as mortgages, children’s education, and daily expenses. A survey by YouGov found that only 19 per cent of Canadians aged 35 to 54 feel confident in their retirement savings, compared to 26 per cent of those over 55. This growing concern underscores the need for proactive financial planning, even for those who feel behind in their savings journey,” she adds.

So how to catch up? Take a look at how much room you have in your registered retirement savings plan (RRSP) or Tax Free Savings Account (TFSA), she advises. If you haven’t been contributing, you may have quite a lot of room in either of these savings vehicles, she explains.

Next, make savings automatic.

“Automate contributions to your RRSP, TFSA, or other savings accounts to ensure that you’re putting aside money regularly. Payroll deductions or pre-authorized transfers make it easier to stay disciplined,” she writes.

Consider meeting with a financial adviser to “maximize investment returns” through balancing your portfolio “between high- and low-risk assets,” taking advantage of tax-efficient savings vehicles, and looking at adding “dividend-paying stocks, mutual funds, or bonds that align with your risk tolerance and retirement timeline.”

Have you calculated when you think you want to retire, and how much you’ll get from government or company retirement programs? King says this is a crucial bit of research to carry out.

As well, in your high-earning 50s, it’s time to “pay off high-interest debt” and consider “downsizing or simplifying living arrangements,” she continues.

If it doesn’t look like you’ll have saved enough by your chosen retirement date, consider working longer, or part time, or developing a “side hustle,” she suggests. If you find yourself retiring after age 65, you can delay the start of your Canada Pension Plan and Old Age Security payments, increasing what you’ll get per month.

“Catching up on retirement savings in your 50s is not just possible — it’s achievable with a well-thought-out plan. By taking advantage of tax-advantaged accounts, reducing debt, optimizing investments and boosting income where possible, you can bridge the gap and retire comfortably. Remember, the best time to start was yesterday, but the next best time is today,” she concludes.

The Saskatchewan Pension Plan is an invaluable partner for your retirement savings. SPP’s Balanced Fund features exposure to Canadian and international equities, fixed income, real estate, and more – all provided via a low-fee, professionally managed, pooled fund. If you want to make your contributions automatic, SPP can do that, via pre-authorized contributions from your bank account that can coincide with payday.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

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!

Join the Wealthcare Revolution – follow SPP on Facebook!

Working past 65? Check to see if you’ll still have benefits

More and more Canadians – either because they need the money or love their work – are continuing to be on the job beyond age 65.

But, reports Money Canada’s Vawn Himmelsbach, “if you stay with your employer after age 65, your benefits could expire at a time you need them most.”

Mandatory retirement at 65 stopped being the law in 2009, she writes. Today, Statistics Canada figures show that “one in five seniors (21 per cent) aged 65 to 74 worked in 2022,” she continues, noting that while “some seniors enjoy their work or the sense of purpose it brings them… many others are working because they have to.”

Those in the “have to work” category are doing so for “financial security reasons, such as affording everyday expenses, paying off mortgage debt, or supporting adult children,” Himmelsbach notes.

But even though there is no longer a mandatory retirement age, your workplace benefits may be impacted by the candles you see lit on your 65^th birthday cake.

“Many group insurance policies terminate at age 65, which typically impacts disability and life insurance benefits,” she explains. She quotes Rajiv Haté, a senior lawyer at Kotak Personal Injury Law, as recently telling BNN Bloomberg that health and dental benefit coverage may also end at that point.

“Say, for example, you’re 66 years of age and have been working at the same company for 20 years, with full benefits. You’re injured on the job and make a claim, only to find out your insurance expired when you turned 65 and the insurer denies your claim. Since you don’t have coverage, there’s not much you (or even a lawyer) can do about it,” she explains.

It’s important to check with your employer about your benefits coverage, she stresses.

“Whether your health and dental benefits expire will depend on your employer’s policy. Some policies will continue past age 65, so long as you’re paying your premiums. Others will end at age 65, though there may be an option to convert it to private coverage,” she writes.

If you are able to convert your workplace benefits into a private policy, you might be able to do so without the need for a medical exam, the article notes. Getting your own private coverage is also a possibility (if you find yourself without coverage), but a medical test may be required and that could impact the price of premiums – or worse, you could be denied coverage.

Those without coverage should put aside money in savings to cover medical expenses, the article concludes.

As one who has retired from full-time work for a little over 10 years, it is for sure a great thing if you can continue to take part in your workplace program. The cost of prescription drugs, dental care, and new glasses – like everything else – keeps going up, and once you are retired, you will be living on less income (barring a lottery win) than you had while working.

Saving for retirement on your own can be daunting, particularly if you aren’t up on stocks, bonds, real estate, infrastructure, or other categories of investment. But there’s a solution – the Saskatchewan Pension Plan. SPP does the heavy lifting of investing your savings for you. And, once it is time to turn in your name badge, SPP provides ways for you to turn those savings into income, such as via a lifetime monthly annuity payment, or our more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!