Tag Archives: US News and World Report

Apr 8: Best from the blogosphere

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

Feds roll out concept of deferred annuity to age 85

An interesting retirement idea in the recent federal budget that hasn’t garnered a lot of attention is the advanced life deferred annuity, or ALDA, option.

While there’s still lots that needs to be done to take an idea from the budget and make it into an actual product people can choose, it’s an intriguing choice.

With an ALDA, reports Advisor’s Edge, a person would be able to move some of their retirement savings from a RRIF into a deferred annuity that would start at age 85.

Right now, the article notes, “the tax rules generally require an annuity purchased with registered funds to begin after the annuitant turns 71.” This option may be a hit with those folks who don’t like the current registered retirement income fund (RRIF) rules that require you, at age 71, to either cash out their RRSP, buy an immediate annuity, or withdraw a set amount of money each year from your RRIF (which is subject to taxation). Currently, the article notes, people can choose one or all (a combination) of these options.

In the article, Doug Carroll of Meridian Credit Union says the financial industry “has for years asked to push back the age at which RRIFs have to be drawn down.”

This proposed change, “addresses that to a large extent. It limits the amount that would be subject to the RRIF minimum, and it also pushes off the time period to just short of age 85,” he states in the article.

Will we see the ALDA option soon? Well, not this year, the article states. “The ALDAs, which will apply beginning in the 2020 tax year, will be qualifying annuity purchases under an RRSP, RRIF, deferred profit sharing plan, pooled registered pension plan and defined contribution pension plan,” the article notes.

The best things to do in retirement – more work?

There’s more to retirement than just money, of course.

According to US News and World Report, the so-called “golden years” should feature more time with friends and family, travel, home improvements, volunteering, new learning, exercise and experiencing other cultures.

There’s also the idea of work – huh? “Just over a third (34 per cent) of workers envision a retirement in which they continue to work in some capacity. And 12 per cent of working Americans would like to start a business in retirement. Perhaps you can scale back to part time, take on consulting or seasonal work, or otherwise find a work schedule that also offers plenty of time for leisure pursuits,” the article advises.

Rounding out the list of retirement “to-dos” are rewarding yourself with a big-ticket car or “other expensive item,” and writing a book. Time to dust off that old Underwood!

Whatever you choose to do with the buckets of free time you experience after retiring, savings from the time you were working will be a plus. The Saskatchewan Pension Plan is like the Swiss Army Knife of retirement savings products, because it has a feature for every aspect of the cycle. You have professional investment at a low cost, flexible ways to contribute, and many options at retirement including lifetime income via an annuity. Check out www.saskpension.com 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

What’s your “saving resolution” for 2019?

What’s your “saving resolution” for 2019?

Let’s face it, January is always an optimistic month. We’re going to lose weight, we’re going to take that trip, we’re going to de-clutter the house, and so on.

But what are people’s “saving resolutions” for this brave new year? Save with SPP set out to find out.

Over at the Meridian Good Sense blog, writer Cindy Waxer sees several great financial ways to start off the New Year.  First, she writes, “tackle credit card debt.” Use some of your Christmas money gifts, or a bonus from work, to pay down higher-interest debt, she advises. Other ideas include saving for retirement, “getting aggressive” with your mortgage, fine-tuning your budget and to “assess your financial situation – honestly.” If you are getting too far into the debt side of the ledger, it’s time to make changes, she notes.

At the Money Aware blog in the UK, ideas include writing down savings goals, sticking to a budget, and “saving in a way that works” for you. If making automated savings withdrawals doesn’t work for you, try anything that works, including “shoving coins in a special money tin” that must be pried open with a can opener.

Save with SPP personally endorses the money tin concept. All our change goes into a little metal piggy bank, and when the bank gets heavy, we dump the coins in one of those money counting machines at the grocery store, deposit the bills in the bank, and then make an SPP contribution. It adds up!

Ideas from US News and World Report include having “no spend” days, spending time to “get healthy… without joining a club,” and using a “fast track” approach to manage debt. “Instead of saying, `I’m going to repay all my debt this year,’ which is a lofty goal, commit to fast-tracking the payoff process. That may mean contributing an extra $50 per month to your debt bill,” the newspaper advises. If possible, use automated bill payments to make the whole process simpler, and build “more” into your debt repayment plans, the article suggests.

When you look at these various articles, a theme emerges. You need to be aware of where your money is going in order to be able to save any of it. Gain control of your spending and you’ll find savings a breeze. And, as we say, socking away even small amounts of money into your Saskatchewan Pension Plan account is something your future you will thank you for – every month!

Here’s wishing everyone a very happy, prosperous, and savings-friendly 2019!

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

Sept 10: Best from the blogosphere

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

Retirement may be good for your health
While most of us focus on the financial side of retirement – the question of saving enough for the “golden years” and then making it last to the finish line – there is arguably an even more important factor to take into account. That factor is the relationship between retirement and good health.

A recent University of Sydney (Australia) study found that retirees “become more active, sleep better, and reduce their sitting time” once they have left the workplace behind.

The retirees followed were also less likely to smoke, the study found.

An earlier U.S. study found “the retirement effect on health is beneficial and significant,” reports CTV News. This study linked a reduction of stress (no more work) to a reduction in smoking, and more time for exercise.

The National Bureau of Economic Research found “positive long-run effects both in subjective well-being, or happiness, and in the objective health measures,” reports The Fiscal Times via Yahoo!

“Retirement is a good time in life that many people look forward to,” states Aspen Gorry, one of the study’s authors, in The Fiscal Times article.

Less stress, more time to take care of your health, better sleep – you can’t put a dollar value on that. So when planning for retirement, take into account the fact that getting out of the workforce may be the best thing you’ve ever done for your health.

Changing things up in retirement
An article in US News and World Report lists “10 Retirement Lifestyles Worth Trying.” And what are some of them?

Going back to school, the article notes, is so popular south of the border that “a growing number of colleges are building retirement communities on or near campus.”

Retirement also lets you stay at home, to “experience what the days feel like when you don’t have to hurry,” the article points out. Other ideas include volunteering, starting a second career, or enjoying the thrill of become a devoted frugality buff.

What you do with retirement is of course up to you. Having a good retirement savings plan is an important underpinning for those years of freedom. If you don’t have a plan at work or on your own, the Saskatchewan Pension Plan can help.

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

 

Jul 30: Best from the blogosphere

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

No generation is winning at retirement savings: research
You might think that one segment of society – the young, perhaps, or the middle aged, or even the old – would be on top of things with retirement saving.

But research suggests that ALL generations are having a tough time with it. According to recent research from Franklin Templeton Investments Canada – reported by the Canadian Press — all generations “appear to be facing challenges saving for and financing their retirement.”

What are the challenges? The article says longevity – the fact that everyone is living longer – is a big one. Parents of Gen Xers, the article notes, are “living longer and spending more of their money on things like health and travel.” That means there will be less to leave to their kids, the article reports.

Interest rates are the second problem. “Canadians have increasingly large levels of debt which become harder to carry as interest rates rise,” the article quotes Franklin Templeton Canada’s Matthew Williams as saying. More expensive debt repayment means less money for saving, the article suggests.

Finally, many of us just aren’t saving. “A quarter of Canadian Gen Xers haven’t saved anything for retirement,” the article notes. Barriers to saving for them include low income, high living costs, student loans and mortgages, the article reports. But it’s not just Gen Xers who are having problems. A surprising 23 per cent of pre-retiree boomers have saved nothing for retirement, the article states, with that figure rising to 50 per cent among younger millennials.

It’s never too late to start saving for retirement, and no amount is too little. A great way to help fund your retirement is to sign up for the Saskatchewan Pension Plan. If you’re already a member, bump up your contributions a little bit each year. You’ll be happy you did when life after work arrives.

What’s best about being retired?
For most of us, it is almost impossible to visualize what life will be like once we have punched the timeclock for the very last time.

A great blog post by Dave Bernard for US News and World Report breaks it down, listing three chief changes retirees will notice.

First, the post notes, you will finally have time to exercise. Bernard writes that now he can control “when and how” he exercises, rather than having to sneak off to do it at lunch. A second point is the sudden unimportance of weekends – they are just another day when you aren’t working. And finally, he says his creative energy has never been higher. It’s not so bad living on the other side of the fence!

 

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