Wealth Professional

Sep 20: BEST FROM THE BLOGOSPHERE

September 20, 2021

One in five over 50 will delay retirement plans: RBC

The pandemic has made many Canadians rethink their retirement agenda, according to new research from RBC, covered in a recent article in Wealth Professional.

According to the article, the study – called the 2021 RBC Myths & Realities Poll – indicated that nearly 20 per cent of Canadians 50 and older have decided to change their retirement date.

There are a number of concerns outlined in the research.

A total of 21 per cent of those with assets of $100,000 or more fear they will outlive their retirement savings. Most of this group, the article continues, “believe they will need $1 million saved for their retirement but more than three quarters are at least $300K short of this.”

It’s worse for those with less savings, the article notes. Those with $50,000 in assets think they will need $533,000 in their savings pots, but are “an eye-watering $473,000 short of this goal,” Wealth Professional reports.

So what are people considering in what the article calls a Retirement Rethink?

  • 22 per cent are “thinking more about where they will live in retirement,” with 20 per cent “deciding where they don’t want to live,” typically meaning not in a retirement home, the article states.
  • Fifteen per cent are said to be reviewing or updating their wills; 17 per cent are “taking stock of their financial affairs,” and 16 per cent “realizing life is short” and are taking up new activities and hobbies, Wealth Professional notes.

Other actions they are thinking of taking, the article concludes, are to “stay in their own home and live more frugally,” to return to work, to downsize or move home, or ask family members for help.

What do we make of all this?

For starters, the cost of a dream retirement condo, cottage or timeshare has gone up significantly lately. It’s not so easy to sell your city house and pick up a cheaper one somewhere else, as prices are up everywhere. This and the massive cost of long-term care, in the thousands per month in most places, makes one’s existing home have new appeal. After all, it is either paid for or in the process of being paid for, you don’t have to pay moving expenses, realtors and lawyers to stay put, and your costs of living are known and predictable.

The article makes the point that having a financial planner makes sense in terms of establishing your financial goals for retirement. For instance, if you plan to stay home and live frugally, will you really need $1 million? It’s important to try and estimate, in advance, exactly what you will need to live on when you live the workforce.

If you are among those Canadians who worry about running out of money in retirement, be aware that the Saskatchewan Pension Plan offers annuities as an option for SPP retirees. With an annuity (they come in various forms with different options) you forego the risk of running out of money in retirement, as annuities provide you with a lifetime income stream. And you won’t have to put your sand wedge down in mid-swing to worry about investment decisions; with an annuity, there are none. Check out SPP, celebrating its 35th year of delivering retirement security, 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 and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


July 19: BEST FROM THE BLOGOSPHERE

July 19, 2021

Could our passion for savings defuse the expected end-of-COVID spending boom?

In an interesting and perhaps “contrarian” article, Leo Almazora of Wealth Professional asks if Canada’s return to being a nation of savers could actually have a downside.

“For many pundits and analysts, the light at the end of the tunnel that is the COVID-19 crisis has been the prospect of a surge in spending as vaccinations allow the unleashing of pent-up demand. But based on certain interpretations of savings data, that may not be the scenario that plays out,” he writes.

He notes that during COVID – with so many spending options removed from play – savings rates jumped to almost 20 per cent in many industrialized countries, including Canada.

It was expected, Almazora notes, that once economies began reopening, the urge to spend would overcome the tendency to save. But research cited from Barron’s magazine in the article shows that “even as economies have reopened, savings rates have stayed unusually high.”

Almazora’s article contends that there were two types of COVID savers – a “forced savers” group that, while keeping their employment, had very few options to spend their money on, and “precautionary savers,” who – worried by the pandemic – save for the “next downturn or economic calamity.”

There’s a third group, he writes, who have sort of got out of the habit of spending on hotels and restaurants, and won’t be spending as much on those things going forward.

This is a very insightful piece. Three groups are described, those who can’t spend their money, those who worry about a fourth wave or some other nasty financial surprise, and those who have been converted to a new obsession – frugality.

One would assume that the “can’t spend” group will be among the first to book vacation flights and resume travel. Those who Almazora describes as “preppers” for a possible further wave of problems presumably won’t join in the fun, nor will those who have decided cooking at home and cutting back on expenses was not only fun, but has led to a piling up of cash in their savings accounts.

It will be very interesting to see how this all plays out; it may take as long to return to a “fully normal” economy as it took COVID to derail “normal” and move us to a stay-at-home/no spend reality.

This writer recalls doing research on pension plan funding – where people sock away money for retirement via workplace plans – and hearing economists suggest the act of saving money was, in effect, negative for the economy in the now. Money saved today cannot be spent today, the argument went.

While this is factually correct, that viewpoint – savings can be bad – ignores the fact that the saved money is invested, often in job-creating Canadian companies and services, and then withdrawn and spent years later by the retirees. It’s deferred spending, in a way.

As a soon-to-be double grandparent, this aging scribe has reached the opinion that any savings is always a good thing. Emergency savings when the roof leaks or the fence falls down; long-term savings for retirement income and to help the grandbabies.

If you have a workplace pension plan, be sure to not only join it, but to contribute to it to the fullest extent possible. If you don’t have a plan – or if you are a small business thinking of offering one to your team – check out the Saskatchewan Pension Plan. This scaleable retirement product works as well for one person as it does for a larger group – and they’ve been delivering retirement security for 35 years.

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 and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Feb 1: BEST FROM THE BLOGOSPHERE

February 1, 2021

Canadians have socked away nearly $300 billion in Tax Free Savings Accounts

It’s often said that high levels of household debt, compounded by the financial strains of the pandemic, make it difficult for Canadians to save.

However, a report in Wealth Professional magazine suggests that Canadians – once again – are indeed a nation of savers. According to the article, which quotes noted financial commentator Jamie Golombek, as of the end of 2018, we Canucks had stashed more than $298 billion in our Tax Free Savings Accounts (TFSAs).

“[A]s of Dec. 31, 2018, there were 20,779,510 TFSAs in Canada, held by 14,691,280 unique TFSA holders with a total fair market value of $298 billion,” Golombek states in the article.

Again looking at 2018, the article says Canada Revenue Agency (CRA) data shows 8.5 million Canadians made TFSA contributions in ’18, with “1.4 million maxing out their contributions.” In fact, in 2018, the average contribution to a TFSA was about $7,811 – more than that year’s limit of $5,500 – because of the “room” provisions of a TFSA, the article explains.

The reason that people were contributing more than the maximum is because they were “making use of unused contribution room that was carried forward from previous years,” Wealth Professional tells us.

Another interesting stat that turns up in the article is the fact that TFSA owners tend to be younger. “Around one-third of TFSA holders were under the age of 40; two-fifths were between 40 and 65, and those over 65 made up about 25 per cent,” the article explains.

“This is not overly surprising since the TFSA, while often used for retirement savings, is truly an all-purpose investment account that can be used for anything,” Golombek states in the article.

However, there is a reason older Canadians should start thinking about TFSAs, writes Jonathan Chevreau in MoneySense.

“Unlike your Registered Retirement Savings Plan (RRSP), which must start winding down the end of the year you turn 71, you can keep contributing to your TFSA for as long as you live,” he writes – even if you live past 100.

He also notes that a TFSA is a logical place to put any money you withdraw from a Registered Retirement Income Fund (RRIF) that you don’t need to spend right away.

While tax and withdrawal rules for RRIFs must be followed, “there’s no rule that once having withdrawn the money and paid tax on it, you are obliged to spend it. If you can get by on pensions and other income sources, you are free to take the after-tax RRIF income and add it to your TFSA, ideally to the full extent of the annual $6,000 contribution limit,” Chevreau writes.

This is a strategy that our late father-in-law used – he took money out of his RRIF, paid taxes on it, and put what was left into his TFSA, where he could invest it and collect dividends and interest free of taxes. He always looked very pleased when he said the words “tax-free income.”

2021 marks the 35th year of operations for the Saskatchewan Pension Plan. The SPP is your one-stop shop for retirement security. Through SPP, you can set up a personal defined contribution pension plan, where the money you contribute is professionally invested, at a low fee, until the day you’re ready retire. At that point, SPP provides you with the option of a lifetime pension. Be sure to check out the SPP 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 and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Looking back, 2020 was a real roller coaster for investors and savers

December 10, 2020

If there’s one thing almost everyone can agree on, it was great to celebrate – in a limited, socially distanced way – the end of the brutal year 2020, when the pandemic slammed the world.

It’s been a particularly frightening year for those of us struggling to save a few bucks for our retirement.

Back in February, when the COVID-19 crisis was beginning to take effect, stock markets dropped sharply, erasing “four years of gains,” reports Maclean’s . The market’s crash was based on fear – “not knowing how severe COVID was going to be in terms of morbidity,” the magazine explains.

In addition to the shocking numbers of deaths and sickness COVID-19 delivered, it also walloped our economy. According to Wealth Professional, quoting Bank of Canada Governor Tiff Macklem, Canada’s economy “is expected to shrink by 5.5 per cent for the whole of 2020, with the initial rebound following the First Wave of the pandemic having eased.”

We all know what he’s talking about here – the First Wave led to lockdowns and business closures, and high unemployment. There was a break in the summer as much of the shuttered economy reopened, but now the Second Wave is causing lockdowns and job losses once again.

The usual safe harbour for savers when the economy (and stock markets) are volatile is in fixed income, investments that pay us interest. However, in order to reboot the economy, the Bank of Canada is planning to keep interest rates low “until 2023,” Macklem states in the Wealth Professional article.

Those “low for long” interest rates mean it is not the best time to buy bonds or guaranteed investment certificates (GICs). Some savers looked to the real estate investment trust (REIT) market to replace the income their fixed income was providing, notes The Motley Fool. While some REITs, notably industrial ones, and those involved with warehousing and data centres did well, “retail and hospitality REITs… had lost 80 per cent of their value at the market’s bottom.” The Motley Fool article wonders how investments in commercial office and retail space will fare in a world where most people are working from home.

Now that 2020 is behind us, there are signs of better days ahead.

The markets in Canada and around the world are now recovering due to late-year news that effective vaccines are nearly ready for distribution.

Dave Randall of Reuters, writing in the Chronicle-Herald, notes that November was “a record-breaking month as the prospect of a vaccine-driven economic recovery next year and further central bank stimulus measures eclipsed immediate concerns about the spiking coronavirus pandemic.”

Let’s review all this. The pandemic hit us hard, sending markets down, throwing people out of work, shrinking the economy. Central banks had to cut interest rates to reduce borrowing costs. That’s great for borrowing but less great for saving. Those looking to replace the interest they weren’t getting had to navigate a market that dropped by 40-50 per cent in the late winter and is recovering, and they had to face the reality that some sectors were doing far better than others.

2021, however, looks like a better year. Market optimism is returning, and once the vaccines start to get distributed around the country, we will (hopefully) start to see a return to more normal times, with no lockdowns and business restrictions.

The point of retirement saving is putting money away for the future, which may be quite soon or decades away. If you’re worried about saving on your own for retirement during these volatile days, you might consider teaming up with the Saskatchewan Pension Plan. With SPP, experts run the money at an extremely low cost. We all have enough to worry about these days – let SPP take the worry of pandemic-era retirement saving off of your plate!

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 and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


NOV 16: BEST FROM THE BLOGOSPHERE

November 16, 2020

Pandemic’s a worry for Canadians, and impacting their ability to save: survey

New research from CIBC and Maru/Blue finds that 40 per cent of Canucks are worried about how the pandemic will affect “their retirement and savings plans,” reports Wealth Professional.

Also alarming – 23 per cent of those surveyed have “been unable to contribute to their retirement plans since the pandemic began,” the magazine reports.

There are also subtle additional ways the pandemic may impact future retirements, Wealth Professional notes, again citing the survey’s findings. Thirty per cent of Canadians surveyed believe they will have to work longer than they originally had planned, and 32 per cent don’t think they’ll do as much travelling in retirement as they had hoped, the magazine reports.

This level of pessimism around retirement has not been seen since 2014, the article adds.

Other learnings from the pandemic include:

  • 20 per cent say they are paying more attention to their personal finances
  • 21 per cent say they “won’t panic when markets become volatile”
  • 19 per cent agree it is “important to save for retirement/their future”
  • 26 per cent feel the pandemic has “significantly increased the cost of retiring”
  • 24 per cent now feel they can live with less and will reduce discretionary spending

The amount needed for a comfortable retirement is, according to Wealth Professional, “10.9 times their final pay to maintain the same spendable income after retirement.” The magazine cites findings from actuarial firm Aon for this figure.

These figures are certainly not surprising. Many Canadians have had their income slashed, are receiving benefits, and have deferred repayment of mortgages as we all try to tough out the pandemic.

It’s encouraging that nearly 20 per cent of us – despite being downtrodden by the pandemic – still see the value of setting aside whatever they can today to benefit themselves in the future.

Another part of the equation, of course, is living on the retirement savings – the so-called decumulation side, where all the money you’ve piled up is turned into what you live on in retirement.

According to Benefits Canada, Canadians need to think about how to make their retirement income last.

“We’ve had a number of tax rules and pension rules based on the age of 65 and that made a lot of sense years ago, but the issue is now, once you hit 65, you can live to 87 or even longer,” states economist Jack Mintz of the University of Calgary in the article.

“I think we need to allow people to put more money in tax-sheltered savings. I would like to see an increase in pension limits and [tax-free savings account] limits in order to help people save more for the future. I’d also like to see more rules around [registered retirement income funds], when you have to withdraw money out of your retirement accounts… to provide more flexibility,” Mintz states in the article.

These are solid ideas for making retirement savings last longer, and for helping Canadians accumulate even more savings than they have at present. If you are looking for a place to stash cash for your retirement future – a place where your savings will be professionally invested at a very low rate – look no further than the Saskatchewan Pension Plan (SPP). The SPP has an impressive rate of return of nearly eight per cent since its launch nearly 35 years ago. And if money is tight today, you can start small and gear up when better times return. Take the time to click over and check them out.

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 and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Aug 17: BEST FROM THE BLOGOSPHERE

August 17, 2020

Are Canadians getting sidetracked in their retirement savings efforts?

What’s something that you begin to think about for the first time in your 20s and 30s, and begin to worry about once you’re in your 60s?

No, it’s not growing old. According to new research from Franklin Templeton, reported upon in Wealth Professional, that multi-decade preoccupation is saving for retirement.

Franklin Templeton’s Retirement Income Strategies & Expectations (RISE) research found that 79 per cent of Canadians “believe someone should start saving for retirement by the time they’re 30 years old,” the magazine reports. But only about half of those surveyed – 41 per cent – said they did start saving at that age, Wealth Professional reports.

“Looking at the top three financial priorities reported by each participating age group, the survey showed that retirement saving is a top objective among those in their 30s, and it remains as a primary consideration for people up to their 60s,” the magazine explains.

So what’s getting in the way of retirement saving?

According to the survey, “one-third said they fell short because they had to prioritize debt repayment, and one-fourth blamed their shortfall on an unexpected life event or expense.”

Right up there with retirement saving as chief concerns – in all age groups – were “paying off unsecured debt” and “having sufficient savings to cover unexpected expenses,” the survey data shows.

So if Canadians generally aren’t able to save much for retirement, how do they think the golden years will work out?

Even though three-quarters of those surveyed were “confident” about retirement, 73 per cent expressed concern “about potentially outliving their savings,” and 48 per cent admit they have yet to develop a retirement plan.

Without plans or savings, it’s not surprising to learn that Canadians – 42 per cent – expect to have a “later than expected” retirement, Wealth Professional notes. What the magazine did find surprising was that retirees polled expressed “regret at not having saved more” (56 per cent) and noted their expenses had actually gone up in retirement (61 per cent).

The Cole’s Notes version of this is quite simple. We all think we should start saving regularly while we’re young, but then find we can’t or don’t. And when we’re older, we regret that decision. So why not make saving the new “not saving?”

Like any big project, saving for retirement can sound intimidating. Who can suddenly put some high percentage of take-home income away in a retirement savings account? A trick that works is to start small. Can you afford to save $5 a week? Start there. Down the road, when you can, increase it, maybe to $10. Be sure that your savings are automatically withdrawn from your bank account so you don’t accidentally crack into the money. Make it automatic, keep increasing the contributions, and over time, savings will start to pile up. You can use an automated approach with the Saskatchewan Pension Plan.

You can also set up your SPP account in the “bill payments” area of your bank account, and then transfer any cash left over following bill payments to your plan. SPP will quietly and efficiently grow your money over time, and when it’s time to hit the parachute and escape from work, your SPP pension will be ready to provide you income for life via a choice of annuity options. Be sure to check them out today!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


JUL 13: BEST FROM THE BLOGOSPHERE

July 13, 2020

Pandemic a bigger challenge to retirement saving than Great Recession: report

Unless all your retirement savings are invested in low-risk securities like GICs or government bonds, you’ve probably spent a lot of time watching the pendulum swings in the market since March.

A new report from Fidelity Investments Canada says it’s clear that today’s pandemic-influenced markets are worse for savers than the shaky markets of the “2008-2009 Great Financial Crisis.”

“Data shows Canadians near and in retirement are more negatively impacted by COVID-19 than the Great Financial Crisis,” states Peter Bowen, Vice-President, Tax and Retirement Research in a media release from Fidelity. “However, we are in this together and there is help. By seeking financial advice and writing down an action plan, Canadians can feel better and navigate the uncertainty,” he states in the release.

The data was gathered for Fidelity Canada’s annual Retirement 20/20 survey, which gathered data from Canadians “already in and approaching retirement.”

Here are some of the key findings mentioned in the media release:

  • 40 per cent of retirees reported “a negative outlook on their life in retirement,” the worst score in this category since 2014.
  • 40 per cent said their earnings had decreased owing to the pandemic, and 50 per cent said that fact, in turn, means they are “reducing the amount of money they are able to save.”
  • Those (80 per cent of pre-retirees and 92 per cent of retirees) with a written financial plan felt “positive about their (future) life in retirement.”
  • Eighty-five per cent of those with a plan said they worked with an advisor.

What’s different about this market rollback from the 2008-09 crisis?

According to Nicolas Samaan of Manulife, interviewed by Wealth Professional, this crisis has a different element to it.

“You’ve seen on LinkedIn people posting about losing their job and people helping each other,” Samaan tells Wealth Professional. “You see that human interaction, not just financially but in general, people making sure others are okay.

“It’s more about wellness – that is so much more important. I’ve always said to people, if you don’t have the health to do your (personal projects), it’s not going to work. In that sense, this crash was very different than what we’ve seen in the past,” he states in the article.

Samaan is right. The last crisis was scary but on a strictly economic basis – will banks fail, will the economy tank? This one has the overlay of a worldwide health crisis – will we find a way to cope with, or become immune from, this virus, and will the economy be able to hold on until that happens?

Picking stocks when markets are uncertain is not something for the faint of heart. Having professionals handle the investing is especially valuable at times like these. It’s nice to realize that the Saskatchewan Pension Plan has averaged an eight per cent rate of return since its inception in the 1980s, a period of time that included the Tech Wreck in 2000-2001 and the Great Financial Crisis a decade or so ago. The pros can make adjustments when markets take an unexpected turn, and can look at alternative ways to grow your money. Check out the SPP 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 and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Feb 24: Best from the blogosphere

February 24, 2020

Old “rule of thumb” retirement planning go-tos may need adapting: Shelestowsky

A great interview with Meridian’s Paul Shelestowsky in Wealth Professional shows that some of the old standard tenets of retirement planning may not translate as well here in the 21st Century.

An example, Shelestowsky tells Wealth Professional, is the idea that saving $1 million in your retirement kitty is a target we should all be aiming for. But that figure may not be the right target for everyone, he explains in the story.

“StatsCan has reported that close to 40% of Canadians are still working between the ages of 65 and 69,” he states in the article. “Some Canadian adults have their 75-year-old parents living with them; sometimes that means they get help with the finances, but a lot of times they don’t. Similarly, you can’t just assume that your kids will move out when they’re 25 anymore.”

Another rule our parents told us was never to take debt into retirement.

But that’s increasingly difficult to do, Shelestowsky explains to Wealth Professional, in an era where it is common to continue mortgage payments in retirement, and where household debt has reached levels where Canadians are “owing $180 for every $100 they bring home.”

“How can you retire when you’re having troubles getting by with your regular income, and then have to live on 60% of that?” he asks in the magazine article. High levels of debt may explain the greater-than-ever reliance on home equity lines of credit, Shelestowsky tells the magazine.

Planning for retirement is still of critical importance, he says. “Failing to plan is planning to fail,” he notes in the article. Without some sort of savings, he warns, you could be living solely on Canada Pension Plan (CPP) and Old Age Security (OAS) payments, which he says works out to only about $1,700 to $1,800 a month, or $42,000 a year for a married couple.

“The government never meant for OAS and CPP to serve as people’s sole retirement income source,” he states in the article. “Back in the day, people could comfortably sock away an extra $200 a month when they’re 20 or 30 years old; now you could say debt is the new normal. And to have a defined-benefit pension plan you can count on in your old age … that’s almost unheard of nowadays. Companies are shifting toward defined-contribution plans, but even that’s not a staple perk anymore.”

Shelestowsky says a solution is to get the help of an advisor to figure out a pre- and post-retirement budget. For those in poor financial shape, the budget process can turn things around; for others, it is a much-needed source of retirement reassurance, he tells the magazine.

If you have a workplace pension plan or retirement savings arrangement, you have a leg up for retirement. But if you don’t, and aren’t sure how to invest on your own, be sure to check out the Saskatchewan Pension Plan. Through this open defined contribution plan, you can contribute up to $6,300 a year towards your retirement – your money will be grown by professional investors at a very low fee, and when the day comes when you are logging off for the last time and giving back your building pass, SPP can turn those savings into a lifetime income stream.

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

Oct 28: Best from the blogosphere

October 28, 2019

Canada – still among the world’s top places to retire

Canada – true north strong and free – has been ranked the 8th-best country in the world in which to retire, according to a recent survey by Natixis Investment Managers.

The study, which was reported on in Wealth Professional, covered 44 developed countries, the magazine reports.

“Canada has been ranked eighth among 44 developed countries for retiree wellbeing in the 2019 Natixis Global Retirement Index with an overall score of 77 per cent. It improved its standing by one spot compared to last year by improving in retirement finances and material wellbeing and holding steady in health, though it slipped in terms of quality of life,” the magazine reports.

While the study put Canada’s finances near the top of the list, a couple of warning signs are out there, the magazine reports.

“The ongoing rise in the ratio of retirees to active workers has introduced a risk of old-age dependency — a trend that could impact future generations, particularly women — as well as rising pressure on government services over time. Canada’s financial ranking is also threatened by lower scores for tax pressure and interest rates,” reports Wealth Professional.

In plainer terms, since the number of retirees is gaining on the number of those working, the survey makers felt Canada may see negative impacts on government retirement services in the future.

Canada improved to 21st in the “material wellbeing” category, the magazine notes, but again warned that the current low-interest rate environment is forcing retirement savers “to invest in higher-risk assets, increasing their exposure to volatile markets — something that’s especially concerning for an investor segment that’s less able to recover from possible losses from market downturns,” Wealth Professional reports.

Other future concerns noted in the article are longevity risk – the danger of living to a very old age – and concerns about the climate.

On balance, however, it is nice to see that our many efforts to save for retirement are paying off, in that we live in a country that is one of the best to retire in. Think of that when you’re wrestling over whether or not to direct a few more dollars to retirement savings – at the end of the day, you’re going to be where you want to be, and those dollars will come in handy as future income. The Saskatchewan Pension Plan offers a great way to do just that.

Top 5 things about retirement

Now that we have proof that Canada is a great place to be a retiree, let’s look at some of the great things about being retired in general.

According to The Kerrie Show blog, the best things are:

  • Time to spoil yourself
  • Freedom to choose (as in, what to do)
  • Being financially secure
  • Pursuing your interests
  • Having a busy social life

The blog notes that while some of us may find retirement to be a “strange environment,” and may miss performing “a necessary service” on the job, “one should look at the positive side of retirement… there are many benefits.” Very true, those words.

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

Jul 8: Best from the blogosphere

July 8, 2019

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

Caring for parents hits retirement savings bottom line

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

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

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

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

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

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

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

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

Some great things about retirement

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

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

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

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

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