A look at the best of the Internet, from an SPP point of view
Canadians living longer – here’s how to avoid running out of money
Retirement is about accumulating savings and then “decumulating” them, or living on them for the rest of your life.
While it’s fairly easy to set a savings goal, the harder part is figuring out how long you’ll live, according to a recent article in the Kitchener-Waterloo Record.
“For planning purposes it is advisable to assume a long life,” the article notes, citing Statistics Canada figures showing that Canada’s life expectancy “ranks among the top in the world.” There are 19.4 per cent more folks aged 85-plus as of 2016 versus 2015, the article notes, and in that same period there has been a 41.3 per cent increase in those aged 100 and older.
“The longer the life, the more likely you will run out of money,” the article warns.
There is a nice way around that problem, called a “longevity risk” in the pension business. You can convert some or all of your savings into an annuity. An annuity will guarantee you a payment amount that will be paid each month for the rest of your life. That way, if you live for a century or longer, you’ll still be getting income.
The Saskatchewan Pension Plan offers an interesting variety of annuities, to find out more, check out their retirement guide.
Some selected sayings about retirement
What is it like to be retired? Save with SPP had a look at The Joy of Being Retired blog, and found a few choice comments.
- “Gainfully unemployed – and proud of it too.” Charles Baxter, from Feast of Love
- “The money is no better in retirement but the hours are!” Author unknown
- “Retirement – when you quit working just before your heart does.” Author unknown
- To these, we will add a few we’ve heard:
- “I know I ain’t doing much – doing nothing means a lot to me.” Bon Scott, AC/DC singer
- “I will be fully retired when the mortgage is.” Anonymous SPP blogger
- “The older I get, the better I used to be.” Golfer Lee Trevino
|Written by Martin Biefer
|Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22|