Retired financial writer reviews his first retirement moments

Any of us who have retired will remember, perhaps, the “I wonder what retirement will be like” moments we felt as the time clock for the last day at work wound down. We remember our last coffee run for the team, the last train ride home, and so on.

Rob Carrick of The Globe and Mail, a well-read personal finance columnist for many years, is now taking his first steps in the world of retirement.

“You have instant community when you retire – just go to a mall, diner or blood donation clinic early in the morning on a weekday,” he observes.

“Retiring is stepping into a different life with different rules. Let me tell you about a few of them based on personal experience,” he adds.

First, he writes, “regardless of your financial status, you are rich in time” once you are retired. “You can do what you want, when you want. And so, you go to the mall when it’s emptiest,” he adds.

Next, he adds, is the shift away from weekly or bi-weekly paycheques to monthly pension payments.

“Getting paid monthly means new thinking on how to save for big expenses. Right now, I’m carving off some of those monthly payments as soon as they’re received to cover recurring costs such as property taxes, insurance premiums and utilities. We have separate savings accounts for these, each labelled specifically. I find this really helps with organization,” he suggests.

Similarly, you must think a little harder about income taxes.

“Another expense to be covered is income tax, which brings us to one more way retirement differs from your working life. If you have an employer, the correct amount of taxes for your income is taken off the top of your paycheque. You may have a balance owing to Canada Revenue Agency when you file your annual income tax return, but it shouldn’t be anything unmanageable,” he notes.

Now, he continues, “my wife and I both have a 15-per-cent withholding tax applied to our pension payments. I set up yet another high-interest savings account to hold the additional amount of tax we expect to owe after we file our 2025 tax return next spring. With each pension payment, money is automatically transferred to that account.”

Carrick has an interesting take on the term “retirement” itself.

“One more life adjustment when you leave the full-time workforce is how the word `retirement’ sounds to your ears. Telling people you’re retired earns you all kinds of reactions – some envy, some surprise and some disapproval from those who can’t imagine their lives without the fulfilment and status of a job,” he notes.

He concludes with the good news that he’ll continue writing for the Globe on the topic of retirement and other personal financial subjects. We wish him the best in his new role.

While it is possible to self-fund a retirement through disciplined personal saving and a strong investment program, not all of us have the ability to stick with the program or the investment savvy to get started.

That’s where the Saskatchewan Pension Plan comes in. All you need to do is send us contributions, by pre-authorized contribution from a bank account or credit card, via online banking as a “bill,” by cheque – SPP is flexible. What we do is invest those hard-saved dollars in our low-cost, professionally managed pooled fund. You can ramp up contributions as you earn more, and transfer in any amount from registered retirement savings plans you may have.

At retirement, you can choose the security of a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Who wants to be a millionaire, but not feel rich?

Years ago, we joked that while we might never be millionaires, we could at least claim to be thousandaires.

But these days, reports The Globe and Mail, there are way more millionaires than ever before. Why, the article asks, do so many of them not feel rich?

Take the example, the article begins, of Martin Alderwick, 76, of Guelph. “The couple brings in about $7,500 a month in retirement income and own a townhouse that makes up nearly 40 per cent of their total assets. Their net worth crosses the seven-figure threshold,” the article notes.

All good, then?

“Mr. Alderwick doesn’t identify with the millionaire title. `I live comfortably,’ he said. `But I still look for bargains and where I can save,’” the article notes.

“His unease reflects a growing reality in Canada: A rising number of people technically qualify as millionaires, but don’t feel, or function, like it,” the Globe reports.

The article, citing the UBS 2025 Globe Wealth Report, notes that the number of millionaires globally has quadrupled since the start of the century. The report suggests there are 52 million people worldwide with wealth between “$1 and $5 million, U.S.”

Much of the growth in personal assets comes via real estate, the Globe reports. “As home values surged in major cities and even mid-sized markets, many middle-class homeowners became millionaires without doing anything beyond staying put,” the article explains.

However, having a million in assets these days may not be as big a deal as it used to be, the article continues.

“Many of these individuals are likely confronting an uncomfortable truth that having a million-dollar net worth doesn’t necessarily mean you are financially ready for retirement,” the article adds.

“We still have this notion of a millionaire as someone on a yacht or a private jet,” said Brenda O’Connor Juanas, a financial adviser at UBS, tells the Globe. “The makeup of what this millionaire looks like is quite different,” she states in the article.

Incredibly, by last year, the “average Canadian household net worth reached $1,026,205, a 30 per cent jump from 2019, according to Statistics Canada,” the article notes. Gen Xers had the “greatest average real-estate wealth, at $666,146 per household,” the Globe adds, followed by Boomers, at $550,994 per household.

The article makes the point that your real estate holdings – i.e., the family home – isn’t really something that counts towards retirement savings.

“If your $1-million net worth includes a $900,000 house and just $100,000 in liquid savings, you’re likely well short of the mark of what you may feel like you need in order to comfortably retire,” the Globe tells us, citing data from Fidelity Canada’s 2025 Retirement Report.

Fidelity’s Michelle Munro tells the Globe that while “the sale of a home can be a way to fund long-term care, it’s a good idea to have assets that are more easily accessible.” She recommends “having a portion of liquid assets in accounts such as a high-interest savings account for short-term goals,” and “investing in the stock market can offer growth over a longer period” for longer-term goals. She stresses the importance of having a savings plan, “not just a number,” the Globe article concludes.

Lots to digest here, but the takeaway seems to be that even a valuable home may not be enough to fund a long period of retirement, particularly if you or your partner needs long-term care.

If you are saving for the long term – to generate income when you are no longer working – be sure to join your workplace retirement program and contribute to the max. If there is no such program, or you want to augment the one you have, consider the Saskatchewan Pension Plan. Open to any Canadian with registered retirement savings plan room, SPP will take your contributions (you decide how much to save) and grow them in a professionally managed, low-cost pooled fund.

At retirement, your SPP income options include a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

“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.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Are retirement parties becoming a thing of the past?

We remember it well. After a little over 20 years at work, we turned in our security pass and headed for retirement. And to cap it all off there was a nice party in Toronto with work colleagues and friends. A great memory.

But, according to The Globe and Mail that retirement party in 2014 may well be a relic from a bygone era.

Take the example of B.C.’s Linda Lawrence, the newspaper suggests.

“The former marketing and communications professional planned to retire in June, but her role was suddenly eliminated last year when her employer was purchased by investors in the United States. She found out on an online call,” the Globe reports.

“After briefly considering finding a new job, Ms. Lawrence decided to retire early,” the article continues.

“Months later, the B.C. resident, now 60, says she has struggled with reconciling how her 30-year career ended with zero fanfare. She had long looked forward to celebrating her retirement in the company of loved ones and colleagues like her parents had, but that didn’t happen,” the Globe notes.

“I couldn’t wrap my head around it,” she tells the Globe. “I felt cheated.”

It’s not an uncommon feeling, the article continues.

“While a workplace retirement party was once seen as a rite of passage marking the end of one’s career and the start of a new chapter, many departing employees are leaving without sheet cakes and novelty-sized farewell cards – and with a lack of closure,” the article explains.

Retirement coach Marilyn Hintsa tells the Globe the retirement party “is a tradition that appears to be waning.”

“People retiring now have lower expectations about what happens when they retire. I think it’s unfortunate that it’s happening, especially if you put in a lot of years with that employer,” she tells the Globe.

“If Wednesday is your last day at work, Thursday is your first day of retirement, and there’s not some line that’s drawn between that, the first day will be tough,” she states in the article.

Why is the tradition changing?

The Globe cites a number of factors, such as “shorter average job tenures” and the rise of remote and hybrid work. Shrinking company budgets, where the onus is on employees to pay for gifts and parties rather than the company, is another factor.

A smaller party is better than no party, the article suggests.

Last word to B.C.’s Linda Lawrence, who believes “organizations should play a role in recognizing retirees’ contributions and wishing them well in their new chapter.”

“What does it cost to send an email,” she asks.

Whether or not you get a gold watch or a slice of cake, retirement is still something to look forward to, particularly if you have retirement savings.

If you don’t have a workplace pension, fear not. The Saskatchewan Pension Plan has a do-it-yourself, voluntary defined contribution program ideal for individuals or organizations. You determine how much you want to contribute, and SPP does the rest, investing your savings dollars in a low-cost, professionally managed pooled fund. And when it’s time to start life after work, your SPP options include the chance of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

“The man from the bank was very nice,” said Grandma over the phone one Monday evening. “He said he just wanted to run a security check, so I ran and got my card.”

Oh no, we thought. We were quickly able to contact the bank to verify that all was OK with her account. She hadn’t been able to see all the numbers (she’s 92) and began to think something was up when the “bank man” started yelling at her.

When we got her on the phone with her actual bank, they reassured her that the bank would never make a “security check” call like that; it was a scam.

Save with SPP took a look around to see what other scams are out there that we – particularly the older and more vulnerable among us – should watch out for.

According to the Toronto.com website, “Canadians have lost a staggering $447 million through various scams and fraud through the first nine months of 2024.”

Of that total, the article continues, $228 million was lost in “investment fraud alone from January to September of 2024.”

An investment scam, the article notes, occurs when “the scammer may try to get you to buy digital currencies, stocks, bonds, or real estate, or to invest in a business directly,” the Competition Bureau Canada states in the article.

“Fraudsters often use social media, dating apps, online ads or websites telling investors to act now while promising high returns,” the article adds.

The Globe and Mail notes that $45 million has been lost “to phone-initiated fraud” like Grandma experienced. That figure “captures only a fraction of the suspected financial carnage,” the Globe notes. “The Canadian Anti-Fraud Centre estimates that a mere five to 10 per cent of victims actually report” the fraud.

In addition to investment scams and phone fraud, the Asterisk blog warns about “social media scams” which often consist of “false advertisements… that promise job opportunities, discounted merchandise, or free trials.” Clicking on these could lead to “identity theft and stolen passwords,” the blog warns.

Another category is called “spear fishing,” Asterisk reports. “Be aware of texts and email messages, which appear to be from a legitimate source, that say someone is trying to access your account. Never respond to the text or email, and do not click on any links.”

These messages may purport to be from someone you do business with – the bank, the post office, Amazon, or the government.

“The golden rule is that if you’re unsure, don’t click. Opening a fraudulent link can potentially infect your device or compromise your data. Instead, reach out to the government agency directly by looking up their official contact information,” the blog advises. “If you’re concerned about these messages, especially if they are ongoing, call your financial institution directly to find out if they’re trying to get in touch with you.”

Another category is employment scams, Asterisk continues.

For example, the blog reports, “Instagram direct messages that claim someone received your resume through a job posting site and is interested in hiring you. It is common for scammers to ask for personal details, financial information and even pretend to send you an advance ‘digital payment.’ However, after you deposit the money, you’ll get a call from your financial institution that the cheque was counterfeit,” the blog warns.

Similar scams involve “car wrapping,” being hired as a “financial agent” to help process invoices or offers for you to be a mystery shopper or personal assistant, the blog cautions.

We’ve all heard (and friends have experienced) the “grandparent scam,” where someone calls saying it is your grandson and that he needs bail money quick to get out of jail. Or the Canada Revenue Scam where a recorded voice says you are about to be arrested for tax evasion unless you contact a random number first. Artificial Intelligence can make any scam sound plausible.

The takeaway is to be skeptical about the reality of any unsolicited call. It costs you nothing to hang up – it might cost you plenty to stay on the line. As our parents used to say, “if it sounds too good to be true, it probably isn’t true.”

Are you among the millions of Canadians who does not have a retirement program through work? There’s a handy resource you should be aware of – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution plan that any Canadian with available registered retirement savings plan room can join.

Sign up and start contributing, and SPP will do all the rest, investing your savings in a professionally managed, low fee pooled fund. At retirement, you’ll have options, including the possibility of a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Should RRIF rules be modernized?

Is it time to revisit the rules regarding converting registered retirement savings plans (RRSPs) to registered retirement income funds (RRIFs)?

Commenting in The Globe and Mail, Tim Cestnick is of the opinion that modernization of the rules is in order.

Cestnick’s neighbour has reached the age when he has to begin taking money out of his RRIF.

“Thousands of Canadians are worried about outliving their RRIFs and the rules that require withdrawals starting in the year they reach 72. The government is aware of the concerns,” writes Cestnick.

Right now, you must stop contributing to an RRSP by the end of the year in which you reach age 71, he explains. “The most common strategy is to convert the RRSP to a RRIF by that date, with mandatory withdrawals from the RRIF starting the following year,” he continues.

Ah, those mandatory withdrawals.

“The withdrawals required from a RRIF are calculated as a percentage of the assets in the RRIF on Jan. 1 each year. The older you get, the higher the percentage you’ve got to withdraw. These percentages were set by the government to allow you to preserve enough savings to provide a constant income stream, indexed to inflation, from age 72 to 100. The rules also assume that you can earn a three per cent real (after inflation) rate of return on your portfolio each year, and that inflation is an average of two per cent annually.”

There are some flaws with the status quo, Cestnick explains.

“One key issue is that folks are living longer, and longer. In the early 1990s, when registered plan reform took place, life expectancy at age 71 was 13.7 years. This has increased to 16.2 years as of 2020 (the most recent data available). The 2020 data shows that 14 per cent of the population will live to age 95 (the figure for women is 18 per cent), which has increased from 5.6 per cent in the early 1980s. And the proportion of people making it to 100 has nearly doubled over that time,” he writes.

The idea that you must make three per cent annually on your investments is also a bit of an issue for Cestnick.

“The government report shows that, in order to achieve this return, based on average historical data, you’d have to invest about 30 per cent of your portfolio in equities for 25 years (basically, from 70 to 95 years) – or perhaps invest more in equities to begin with, reducing this percentage as you age,” he explains. That’s a high exposure to risk and volatility for older people, as “the more equities they hold in a portfolio, the more nervous they get.”

He also notes that “there’s no shortage of experts who would suggest” the target inflation rate of two per cent for 28 years is not reasonable.

He concludes with three suggested reforms to the RRIF system to make things more sustainable.

• “There should be an increase in the age at which RRIF withdrawals must start – perhaps to age 75;
• The minimum required RRIF withdrawal schedule should be reduced; and
• RRIFs under a certain amount should be exempt from minimum withdrawals.”

Another less popular option when you reach end of life for your RRSP is to use some or all of the funds to purchase an annuity. The annuity option is best suited for times when interest rates are higher, so it is now beginning to be mentioned as an option again.

Are you saving on your own for retirement? Why not partner up with the Saskatchewan Pension Plan. All you need to do is direct some savings into your SPP account, and we will do the heavy lifting of investing your money in a low-cost, professionally managed, pooled fund. At retirement, your options include a lifetime monthly annuity or the more flexible Variable Benefit.

Get SPP working for you!

Join the Wealthcare Revolution – follow SPP on Facebook!

“Overlooked” annuities can play a key part in delivering retirement income

While most people are relieved that interest rates are starting to head back down, there’s another group – savers – who are less pleased.

So writes Rob Carrick of The Globe and Mail.

“Declining interest rates are great for borrowers, but they take an axe to returns for people who want to avoid putting their money at risk,” he notes, observing that guaranteed income certificate (GIC) rates have fallen to about five per cent these days from a high of six per cent a year ago.

But interest rates are still higher than they have been for decades, and that’s good for those thinking about investing in an annuity, he notes.

“Annuities have also been affected by lower rates, but you could still get a lifetime yield of five per cent as of recently,” he writes.

Hold up. A yield on an annuity? An annuity is where you hand the provider a lump sum of money, and they guarantee you a monthly lifetime payment. It’s not like a bond or GIC that matures at a key date – it’s paid for life.

Carrick explains.

“What’s lifetime (annuity) yield? It’s a way of looking at annuity returns that was used recently by Clay Gillespie of RGF Integrated Wealth Management to make a point,” he writes. “A life annuity is an insurance contract where you exchange a lump sum of money for a guaranteed stream of lifetime income that is usually paid monthly. Basically, you’re buying your own pension,” he continues.

“It’s hard to say what the actual return is from an annuity because you don’t know how long you’ll live. What Mr. Gillespie did was calculate returns based on life expectancy,” Carrick explains.

In the article, a 65-year-old male converting $100,000 to an annuity would receive $582 a month, and has a life expectancy of 21 years. That’s a yield of 5.3 per cent, the article explains.

For a woman of the same age and same $100,000 annuity, the income is $544 a month for 24 years, a yield of 5.5 per cent.

These calculations assume the people will live an average lifespan. If they live longer than 21 or 24 years respectively, they still receive a monthly payment. If they live less than the average lifespan, their payments stop when they pass away.

“This brings us to a legitimate reason why annuities remain a fringe retirement product. If you die in the years shortly after buying one, you end up having sacrificed a chunk of your savings to buy a short-term flow of income,” Carrick writes.

However, there are even some remedies for those who die younger than expected, the article continues. Some annuities have guarantee periods, say five years. “If you die during (the guarantee period), your beneficiary or your estate will get” the balance of the money left over, the article explains. Other types of annuities provide for some or all of the payment to continue to your surviving spouse.

On the plus side, an annuity means you will never run out of money during your lifetime, the article observes. The article suggests putting some of your money – enough to cover everyday costs – into an annuity and continuing to invest the rest.

Did you know that the Saskatchewan Pension Plan offers its retiring members the option of converting some or all of their account balance to an annuity? Options include annuities with a guarantee period, and annuities that continue to a surviving spouse. The SPP Pension Guide provides complete details on available annuity options.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Every morning, as soon as the first beam of sunlight dares to enter our room, our Sheltie Phoebe is instantly awake, making encouraging “wake up” barks and little indignant cries that soon are joined by our other Sheltie, Duncan.

Negotiation does not work – we need to get up, right now, and feed the little princess and prince, and then, soon afterwards, stumble around the still-dark neighbourhood for a walk. Their early morning antics make us appreciate winter, when the sun comes up hours later. But we love them dearly.

Save with SPP wondered how others feel about the value of having a dog in retirement.

The Extra Mile blog sees a lot of value in having a dog in retirement.

“Dogs are man’s best friend, and that’s especially true for retirees, who can enjoy an array of health and lifestyle benefits sharing their home with a canine companion,” the blog reports.

The article quotes Janice Walker, 71, as saying “dogs just make your golden years brighter.” She originally was “dogless” in retirement “so she could travel more easily,” the article continues, but that thinking changed and soon she and her husband Richard added a Lhaso Apso and a Bichon Frise to their family.

“The dogs encouraged them to walk around their neighborhood four times a day, follow a healthy daily routine, and meet and chat up neighbors. One of Walker’s favorite things about having dogs is being greeted at the door by their wagging tails,” the blog reports. “The unconditional love that dogs give you, and the excitement when you come home, you can’t bottle that,” she tells the blog.

The chief benefits of having a dog in retirement include exercise, the benefits to your heart health (blood pressure is usually lowered), companionship, and “fostering a sense of community” through more interaction with neighbours and other dog walkers, the blog says.

The Kiplinger website recalls that many people got their first dog during the odd, isolating days of the COVID-19 pandemic. “Their instincts to shelter in place with a dog or cat were right on target because in times of stress pets offer people emotional and social support,” the site notes.

Research carried out by biologist Ericka Friedman found that “people who had a heart attack and owned a pet were more likely to be alive a year later than those without a pet. Among the 39 patients without pets, 11 (28 per cent) had died compared to only three (six per cent) of the 53 pet owners,” Kiplinger reports.

She also found that those with dogs “have healthier lifestyles, including getting enough exercise and sleep.”

“Other studies have linked pet ownership with decreased blood pressure, slightly lower overall blood cholesterol levels and general calming benefits, although more research could determine whether pets reduce anxiety or even depression in people,” the Kiplinger article concludes.

There are a few downsides to having dogs, reports The Globe and Mail. Dog ownership “can be a headache for those who travel a lot,” since someone has to look after your furry friends while you are away.

Having a dog may limit your rental options as well, The Globe reports. Pet owners Bruce and Brenda Rennie tell The Globe that as renters and dog owners, they found it much harder to rent. “Renting with a pet is much more difficult,” she tells the newspaper. “It easily took 60 per cent or more of the possible places we could rent off the market to us. People are worried about dogs doing damage to their property and stuff. That was a big thing. I could have had five kids, but one dog …”

Other dog-related expenses include food and treats, toys and “eye-watering” vet bills, the article warns.

It’s true that the cost of food and care for our doggies are higher today than in the past, but we are of the opinion that they are worth every penny.

If you are thinking of taking on a dog in retirement (or a cat, or both), you will need to have some extra dollars put aside for that new expense. A great way to supplement the modest benefits you’ll get from the Canada Pension Plan and Old Age Security is to sign up for the Saskatchewan Pension Plan. SPP will do all the difficult investing work for you – you provide contributions, and we will invest them in a low-cost, pooled fund. At the end of work, SPP helps you turn your now-grown savings into income – options include a lifetime monthly annuity payment or the more flexible Variable Benefit. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Canadians starting to think about retirements stretching beyond their 80s

There was a time when one worked until age 65, got the gold watch, received a pension for perhaps 10 years, and then passed away.

But now, reports Business In Vancouver, “rising life expectancies are extending Canadians’ financial horizons” to their 80s and even beyond.

In an interview with RBC’s Howard Kabot, the publication says there’s a new trend “that sees financial plans being adjusted to accommodate longer lifespans.”

Kabot tells Business in Vancouver that many clients are fine-tuning their investment plans to factor in the idea that they’ll still be healthy and active in their 80s and beyond.

In the past, he states in the article, people assumed “they would slow down by the time they were 80, choosing to stay closer to home.” Today, he points out, “clients are now opting to travel and stay active into their 80s, postponing those plans until their 90s.”

“The population is getting healthier and they are living longer,” Kabot tells Business In Vancouver. “When they needed a financial plan in the past, it was a standard to have enough money to get to 90. Now, we’re easily using 100.”

Let’s let that last bit sink in – planning to get to 100!

So what does that type of planning look like?

The article says there is an emphasis on “making money last longer” so that there’s funding for moving to a retirement home, or perhaps making changes in order to be able to age at home.

An article in The Globe and Mail looks at some of the factors to consider when tweaking your financial plan to include longevity.

The article says that while fixed income investments from things like “defined benefit pension plans and annuities” will ensure you don’t run out of money, you still want to diversify your portfolio so that you are getting growth to counter future inflation.

You also need to be careful with how much you withdraw from your savings each year, the article says, citing the “four per cent” rule as a fairly safe way to ensure you don’t use up your savings too quickly.

The article makes a strong case for annuities.

“An annuity (typically) involves an agreement between an individual and an insurance company, where the person makes payments in return for an income flow typically throughout their retirement years. (They) can be valuable for managing longevity risk, especially for older retirees with even more years under their belt.”

Members of the Saskatchewan Pension Plan have the option of converting some or all of their SPP savings into an annuity at retirement. The SPP Retirement Guide lays out the annuity options that are available – the life only annuity (monthly income for you for life), the refund life annuity (same, but any balance of the amount you provide for the annuity that is not paid out to you by your death is paid to a beneficiary) and the joint and last survivor annuity, where a surviving “spouse or common law partner” will receive a monthly annuity on your death.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

We often hear from fellow seniors about the advantages of going to one vehicle versus two – and the money they’re saving.

Save with SPP decided to take a look around to see what’s up with this thinking.

An article from a few years back by Rob Carrick of The Globe and Mail suggests that going to one car – particularly in your later years – can really pay off.

“Take two working parents, add kids and you have a strong convenience-based case for paying the many costs of owning and maintaining a pair of vehicles. Add a home in the suburbs and the argument gets even stronger,” he writes.

“But owning two cars stops making so much sense later in life. In retirement, you can save a bundle by going down to one vehicle,” he reports.

The article quotes Sylvia Thys, an associate financial planner at Caring for Clients, as showing how planning to “downsize” to one car could add hundreds of thousands of dollars to a couple’s net worth in retirement.

“By adding the money (spent on a second vehicle) saved to their investments, the couple would have two extra years of living in their home before it had to be sold to generate retirement income. Their net worth would increase by a future value of $678,000 at age 95,” Thys states in the article.

Wow. The article notes that a typical couple spends $1,000 per month on each car they own, buying a new car every 10 years and spending “$30,000 to $35,000 a vehicle.” (Five years later, this number is probably more like $50,000.)

And it’s not just financing a car, the article adds – insurance can costs $1,000 per year per vehicle, with maintenance costing even more than that. Going to one car cuts those costs in half, the article concludes.

The Dollar Stretcher blog cites a few further examples culled from the blog’s readers.

Lisa H. of Aloha, Ore., tells the blog her family switched to one car “a few years ago” and have since saved $6,000 “counting payments and maintenance. There are not many times we wish we had two cars, and we are always able to make do.” She says other ways to get around can be tapped when needed – public transportation, ride-sharing services, or getting a lift from a friend.

Reader Laura says Dad can often take the bus or ride to work with a colleague when she needs the car. Mom also can chauffeur him to the office when she needs the wheels, a “great way to get Mom up and ready for the day.”

The Money Smart Guides blog says that while going to one vehicle may not work for everyone, it has great financial benefits.

Savings go far beyond going to one monthly car payment from two, the blog notes.

“You’ll also save money on car insurance, oil changes, vehicle maintenance, and fuel costs,” the blog advises. “Depending on your living situation, having one vehicle could mean you don’t have to pay for a second parking space, too. Don’t forget about the taxes, the registration, the emissions tests in some places, and even car washes,” the blog adds.

We can add personal testimony to this money-saving argument. We went to one vehicle around 2009 – at that time, one of us worked during the week in Toronto and then came home to Ottawa on weekends by train. There was no point having a car in downtown Toronto – parking was crazy expensive even then, traffic was brutal, and you could take the subway/streetcar/bus system anywhere, or cab it, or walk.

These days in Ottawa we share one car, and while we very occasionally have conflicting agendas, it works out. One car payment, one insurance payment, one car to fuel up, one license plate to pay for.

The money that you can save by going to one vehicle can boost your savings. And if you are saving for retirement on your own, perhaps the savings can be directed to a Saskatchewan Pension Plan account. SPP makes saving for retirement easy, because they do the “heavy lifting” of investing your savings for you. SPP’s low-cost, expert investment in a pooled fund has benefited retirement savers for nearly 40 years. At retirement, you can choose between receiving a monthly lifetime annuity payment, or the more flexible Variable Benefit option.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!