With the warmer summer weather now blessedly with us, it’s time to think about vacation travel plans.

Save with SPP had a glance around the Interweb to seek out some money-saving travel tips.

The folks at MoneySense suggest choosing “an affordable destination.” Places where a Canadian dollar can go farther include “Indonesia, Thailand and Vietnam,” the article continues.

Traveller Danica Nelson tells MoneySense that “in Vietnam, I could stay in a five-star hotel for as little as $55 Canadian per night.

“In Da Nang, you could get the freshest seafood available and a beer for $5 Canadian, or a banh mi sandwich for about $1 Canadian,” she adds.

Other tips from MoneySense include using a travel credit card “since you may be able to get cheaper pricing on flights, hotels and rental cars through your credit card’s rewards program,” and switching to only carry-on luggage.

“Switching out your suitcase for a carry-on bag can help you save money and time at the airport,” MoneySense reports.

The Money Talks News blog (27 Tips for Saving Money on Your Summer Vacation) offers up a few more ideas.

One idea our late parents always preferred was to try and visit friends and family in other provinces and countries. The blog notes that this will save you on accommodation. “For their hospitality, offer to help around the house while you’re there, consider taking them out to a nice dinner and bring them some gifts as a thank you,” the blog adds.

Younger travellers might find staying at hostels is far cheaper than booking a hotel, the blog notes.

“The low cost of lodging through a hostel is a trade-off: You’ll share your sleeping quarters and bathroom with strangers, and the accommodations certainly aren’t five-star. For instance, you might have to pack your own towel,” the blog reports.

“But if you don’t mind a thin mattress and lack of privacy, hostels can be an easy way to save money on travel. And you just may make some friends,” the blog adds.

A final tip from Money Talks News is this – to “use public transportation” at your travel venue.

“Before renting a car for an international trip, research the country’s train, bus and even ferry network,” the blog advises. “You may be able to get around for all or most of your trip using more affordable means of transportation — and just rent cars for day trips off the beaten path.”

The Penny Hoarder blog presents a few more ideas.

First, the blog suggests, you should save up for your vacation over time.

“First, you’ll need to estimate how much your vacation will cost. Add up everything. Airfare and lodging might set you back the most, but don’t forget about food, activities and souvenirs,” the blog tells us.

“Next, you’ll take that (perhaps overwhelming) total and divide it by the number of months left until you plan to take your trip. Now you’ll know how much money you need to set aside every month to afford your upcoming vacation,” the blog adds.

This is great advice, the idea of prepaying for a vacation. Nothing is worse than going away for a week or two and then coming back to a basketful of bills.

Other tips from the blog – try to book holidays during “shoulder season,” the period between peak travel and the off-season. As an example, the blog notes, “October is a less busy travel month, so you’ll often see better deals.”

The blog advises people to watch out for the cost of meals while travelling. Consider “packing a snack from home” or “visiting a grocery store” while away.

We can add a similar thought from recent experience. Friends advised us to pack some zip-loc bags before our cruise. Why? So that we could make sandwiches at the buffet and then enjoy them on the shore excursions, where lunch breaks were often not provided.

Similarly, we brought some magnetic hooks to add to our clothing storage needs, got some adapters so we could charge our phones in Europe, and got the missus a purse that could be worn like a backpack. We had inflatable head cushions for the long plane rides – they packed up much easier once deflated.

Travelling in retirement will be easier and more affordable if you are able to sock away some retirement savings in the here and now. If you are saving on your own, a great resource is the Saskatchewan Pension Plan. You can arrange for pre-authorized contributions from your bank account on payday (so you don’t miss the money) or can set up SPP as a “bill” to pay from your online bank. You can even contribute by credit card.

Once SPP receives your contributions, they are invested in a professionally managed, low-cost pooled fund. And when it is time to start The Big Vacation that follows work, you’ll be able to collect your savings as income through such means as receiving a monthly lifetime annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Saving for a down payment seen as a barrier to home ownership: CPA Canada

One reason why younger Canadians aren’t able to save as much as they’d like for retirement may be the fact that they are struggling to save enough – first – to get into the housing market.

New research from CPA Canada and BDO Debt Solutions paints a gloomy picture of the struggles faced by those hoping to be homeowners.

“As rent prices outpace inflation and wages lag, one-in-three (32 per cent) Canadians say saving for a down payment is the biggest barrier keeping them out of the housing market,” states a media release from CPA Canada.

A further 30 per cent, the release continues, point to the “ongoing cost of mortgage payments” as an obstacle to home ownership. Only 10 per cent of those surveyed say they favoured the “flexibility of renting.”

“With 43 per cent of all respondents reporting the high cost of living as their top financial challenge—and another 14 per cent pointing to paying down debt—many Canadians are struggling to manage day-to-day expenses, let alone save for a home,” the release notes.

“Like sucking the oxygen out of a room, rising housing costs in Canada leave little left for consumers to spend in the overall economy,” states David-Alexandre Brassard, Chief Economist at CPA Canada, in the media release. “High down payments restrict access to real estate investments and exacerbate wealth inequality, leading to social consequences,” he states in the release.

High housing costs may also explain “the growing reliance on credit and shrinking emergency savings,” states Nancy Snedden, Licensed Insolvency Trustee and President at BDO Debt Solutions, in the release.

“The dream of owning a first home is slipping away for many Canadians. With the cost of living on the rise, saving for a home has become increasingly challenging,” Snedden states in the media release. “It’s concerning that only two per cent of non-homeowners in Canada are able to make their emergency fund a financial priority, while many are relying on credit to cover their expenses,” the release continues.

It’s creating a strange, divided society, the release adds.

“The results also reveal a clear generational divide: while three quarters (74 per cent) of Canadians aged 55 and older own their homes, that number drops to 63 per cent for those aged 35 to 54, and just 31 per cent for Canadians aged 18 to 34,” the release tells us.

Getting into the housing market is worth the effort financially, the release concludes.

“Homeownership is closely tied to financial stability and wealth accumulation,” states Li Zhang, Financial Literacy Leader at CPA Canada, in the release. “This is reflected in the behaviour of Canadians: homeowners are more likely to save for retirement and invest, while renters often live paycheque to paycheque. Only four per cent of renters report prioritizing lifestyle spending—most are simply struggling to cover the basics.”

Homeowners are more likely to be savers, the release concludes, with 28 per cent of them saying “the top financial goal is saving for retirement or long-term investments.”

It’s clear that homeownership is a greater challenge today than perhaps ever before. However, even if one’s focus is chiefly on getting money together for that downpayment, be sure to save something – even just a little bit – for your future, retired you.

The Saskatchewan Pension Plan does not, unlike most pension plans, have a set contribution rate. You can contribute, as a member, as much or as little as you want. When saving for that house, perhaps you keep your contributions low – once you are in that new home, maybe you can begin to start ratcheting up the contributions. SPP provides the savings flexibility that many of us need.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Years ago, at another job, we put out a booklet about what to do if you had an “unexpected” retirement. Where we were trying to go was to think about people who leave their jobs due to health problems, layoffs or cutbacks, and other unpleasant surprises.

Target Your Passion by Joy D. Holland uses a case history approach to present the stories of five people who faced unexpected adversity in their retirement years – and what they did to right the ship.

“Not everyone has the opportunity to travel on long vacations, to play 36 holes every week or `shop till you drop,’” she writes. Her book is aimed at those who “need to make plans” for retirement but “don’t have the direction.”

Many arrive at retirement asking, “what am I going to do now,” she continues. Do they know where they are headed – “do I have any ideas… any clues?” Or, if they aren’t doing anything with their time in retirement, “am I in a rut… how did I get here? What am I good at doing? What do I love to do?”

She warns us that “those who retire into a rocking chair fare very poorly. Their quality of life is not optimum, and their lives are shortened by boredom, poor health, or both. What a shameful loss! We still have so much more to give!”

Next, the book introduces five people facing five different retirement challenges. Retired bank employee Gloria’s husband Matt “suffered a massive stroke which left him almost completely incapacitated” soon after his retirement, throwing plans for retirement travel out the window.

Workaholic engineer Ted – divorced at age 57 – gets “a devastating diagnosis,” that he “was destined to spend the rest of his life in a wheelchair,” making the avid, fit golfer “more and more angry.”

Maggie, the book tells us, is a single parent housekeeper who – now with an empty nest – isn’t able physically to do her work due to back problems. Chris, who worked for a construction company, found he had “cabin fever” after just months of retirement. Finally, Jessie, 60, is alone, unemployed and divorced “after decades of being a wife and mother who worked odd jobs to keep the family together.”

All five, writes Holland, “had some really difficult choices to make. Not one of them had any idea of where to begin. The first thing each of them did, after taking time to bemoan their future, was to face it and take stock of the situation in which they found themselves. They then listed their strengths and weaknesses, what they loved (and didn’t) and what they could do; and whether it was something they even wanted to do.”

Gloria looked for things she could work at and “drop in a second whenever Matt needed her.” She resumed an old hobby of needlework; “she could knit or crochet baby blankets” and sell them online.

Ted relaxed and “downsized his home and made it wheelchair-accessible and functional,” and bought a van he could drive with hands only. He looked into being a teacher of the engineering skills he had mastered.

Maggie, bad back and all, decided to hire a team of women to take her place in a cleaning business she would start and manage. Chris recalled the days of making wooden toys for his kids and got back into woodworking. Jessie dusted herself off, put a resume together based on her office skills, and began looking for new work and an affordable place to live.

All five took steps that ultimately turned their retired lives around, Holland writes.

“Most of us, at least, have options that those five might not have had… but they all used the same format to move forward,” Holland writes. Review and brainstorm your ideas and dreams, she writes. Look at things you like and love, your skills, and any “potential opportunities” that are out there for you. Look for resources at the local level, perhaps with the Chamber of Commerce or online tutorials, she continues.

She includes a detailed list of ideas for activities that can generate income and enjoyment.

This is an interesting and well-written approach to the subject of coping with adversity in your elder years.

Many people don’t think about saving for retirement and also don’t have any sort of retirement savings program at work. If the idea of saving and investing dollars for retirement is daunting to you, you may want to take a look at the Saskatchewan Pension Plan.

SPP does all the heavy lifting of retirement savings for you – they will take your savings dollars, invest them in a professionally managed, low-cost pooled fund, and grow them until you retire. When that day arrives, your options include a lifetime annuity payment 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!

These days, many of us are trying to buy Canadian – avoiding products that come from south of the border. We’re changing vacation plans from Florida to Europe – or doing an all-Canadian tour of our beautiful country, its three-ocean coast, gorgeous mountains, and golden prairies.

But what about investing? Should we try and invest 100 per cent in Canada? What are the pros and cons of an all-Canadian investment portfolio?

Save with SPP asked Jonathan Kestle of Milestones Retirement Insights for his thoughts on the subject.

On the “pro” side, he says investing in Canada is investing “in something we are familiar with. There are fewer surprises – and boring sometimes is good,” he says. It’s overall a little easier to “keep your money at home,” he adds.

However, because of our country’s economic ties to the U.S., going all-Canadian won’t avoid some of the volatility the American markets feel – there is a “positive correlation” since our markets are (currently) so intertwined, he adds.

Investing in Canada means “you are supporting Canadian companies and workers, a `feel good’ move that is important for our economy,” he says.

There’s also a tax advantage or two, Kestle points out. “If you invest in Canadian companies, you may receive a dividend tax credit from certain types of investments,” he explains. That means the tax treatment – for Canadians – of Canadian investments is “more favourable than investing in U.S. stocks, where the income is treated more like interest.”

He adds that the dividend tax credit matters most to non-registered investments, as there are no such tax considerations for investments within registered retirement savings plans or Tax Free Savings Accounts. “But there is definitely more favourable taxation for non-sheltered portfolios,” he says.

Kestle adds that there are also some “cons” to consider when thinking about an all-Canadian investing strategy.

Canada’s economy “is a smaller, more resource-based economy – there is less diversification” than in the broader markets, he begins.

“In an all-Canadian portfolio you can only get some much exposure to different assets classes, like research and development, technology, healthcare, biotech, and big consumer brands. There’s no Canadian version of Nike or Coke, although we do have companies like Shopify,” he notes.

“But we don’t have all the media companies – entertainment, movies, and Netflix.” While our largely resource-based economy, sprinkled with banking, utilities, and consumer staples offers growth, “or the potential for it,” all-Canadian returns lack some of the “bat it out of the park” returns you see with U.S. technology stocks, like chipmakers. Also in Canada, there is more government regulation of most industries, which also “can hamper growth,” he explains.

Kestle says there is a potential silver lining to our current trade issues with our southern neighbours.

“We have woken up to the fact that we can’t just hitch our wagon to the U.S. economy,” he says. That offers up the potential for “internal trade barriers (between the provinces) melting away,” he explains.

“Maybe we can start to refine more of our own oil. Perhaps there will be new supply chains with new trading partners, such as the European Union. There are a lot of opportunities out there,” he says.

There is encouraging talk of finally developing an “energy corridor” so that our oil and gas can reach new markets. “We have the unity and the will to potentially do those things now – there is an `all hands on deck’ feeling,” he says.

Anyone thinking of changing their investment portfolio should first consider getting expert financial advice, he says. “It is important to diversify, yes. But investing can be difficult and timing the markets is very difficult.” It is better, he suggests, to have a plan that sets out your investment guidelines, your tolerance for risk, and other factors. Develop a plan and then stick to it, he advises.

For those thinking of reducing their exposure to U.S. securities, Kestle advises against a quick sell off, and suggests a “lazier approach” of gradually lightening your exposure over time. That way, you can get out of the U.S., investment wise, “when something goes up.”

We thank Jonathan Kestle for taking the time to talk to us.

Diversification is an important part of any investment strategy. Did you know that the Saskatchewan Pension Plan’s Balanced Fund is invested in nine different asset categories? Those categories are Canadian, U.S. and Non-North American equities, real estate, infrastructure and bonds, and mortgages, private debt and short-term investments. It’s smart to avoid putting all your retirement savings eggs in one basket – and SPP’s diversification delivers just that.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Only 36 per cent of Canucks confident they will “maintain financial stability in retirement”

A mere 36 per cent of Canadians feel they will be financially stable in retirement, according to a new poll for Bloom Finance carried out by Angus Reid.

The poll’s results were covered recently in a Toronto Sun article by Jane Stevenson.

While seven per cent of respondents “say they feel very confident” about their post-retirement finances, “27 per cent say they’re not confident at all, and another 37 per cent feel only slightly confident,” Stevenson’s article notes.

Other poll findings reported by the Sun article:

• “46 per cent say that increasing Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) is the financial relief measure that would be the most helpful in retirement.”
• “67 per cent ranked OAS and GIS in their top two most helpful financial relief measures.”
• “Increasing tax-free earnings for working seniors (39 per cent) and maintaining the current OAS and GIS (35 per cent) were the next most popular measures.”
• “The top expected sources of retirement income for Canadians are Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) (72 per cent), personal savings (69 per cent) and OAS and GIS (61 per cent).”

With nearly three-quarters of Canadians thinking CPP/QPP and OAS will be their top source of income, it’s important to realize these programs provide a fairly modest benefit.

According to the Government of Canada’s own website, the maximum CPP benefit anyone can receive this year is $1433 per month. However, the same site notes that the average amount being paid to new beneficiaries this year is $899.67.

You have to have worked for a very long time in Canada, and have contributed the maximum CPP contribution for all of those years, to get the full benefit.

For those age 65 to 74, the maximum OAS amount is $727.67, another government website notes, while for those 75 and over it is $800.44.

If there’s a takeaway from all these numbers, it’s this – those among us who think the CPP and OAS may be their top source of retirement income may not be aware that the most they can get from these sources is currently just over $2100 a month.

That’s a fairly modest figure. If you have a retirement program at work, be sure you are contributing to it as much as you can.

If you’re saving on your own for retirement, consider partnering up with the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution plan. Any Canadian with available registered retirement savings plan room can sign up. Once you are an SPP member, you decide how much you want to contribute each year, and SPP does the heavy lifting, investing your savings dollars in our low-cost, professionally managed pooled fund. When it’s time to retire, your choices include a lifetime annuity payment each month, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Let’s face it – we all wish that our kids and grandkids live long, happy lives and manage their finances well. Ideally, we are setting an example for them to follow, right?

But Save with SPP suspects that we may inadvertently be setting some poor examples for them to follow. Let’s have a look around the Interweb for things we should not teach our kids about money.

At the MoneyTime blog, the top tip is to avoid “not talking about money with your kids.”

“Not talking about money to kids is setting them up for financial disaster. After all, money makes the world go round. We all use it, we all need it. It gives us choices and the freedom to do things for ourselves, our family and our community. Kids need to know about it so it’s essential we include them in our day-to-day conversations – like doing the shopping, buying stuff online, going to the bank, budgeting for a holiday,” the blog advises. Just be honest with them, the blog continues.

The blog opposes the idea of “giving children money for nothing.”

“Giving them money without them having to earn it means they don’t learn the value of it. That it doesn’t grow on trees or appear automatically from a hole in the wall. Money is earned by working hard and being smart. It’s one of life’s immutable laws and the sooner they get that ingrained in their heads, the better for their future and your cash flow,” the blog suggests.

A third idea from MoneyTime is to avoid “not teaching your children about debt and credit cards.”

“Without understanding the true cost of debt, your kid may be headed for a bad start to their independence when they turn 18 and get inundated with credit card applications. They may be lured into getting credit cards and thinking their credit limit means they `have money.’ Of course this is not the case. It’s borrowed money and if the repayments are not met, the interest escalates rapidly,” the blog warns.

Great advice – we have already had this convo with our oldest granddaughter.

The Codeyoung blog serves up a few more.

Don’t “not set a good example” with your own money management skills. “Children learn by observing. If parents and teachers don’t manage money well, children may pick up bad habits,” the blog notes.

Another example from the blog is to avoid “overemphasizing spending.”

“Focusing solely on acquiring things rather than on financial responsibility and values can lead to poor money management habits,” the blog notes. You can avoid this, the blog adds, by making an effort to “balance lessons on spending with teachings on saving, budgeting, and investing…  emphasize the importance of keeping records of money spent and balancing it with saving.”

Similarly, a mistake parents can make is “not explaining the difference between needs and wants.”

“Children must know the difference between needs and wants so that they can plan their budget accordingly which becomes in favour of their interest,” the blog reports. “Without understanding the difference, children may struggle with prioritizing their spending.”

The Times of India provides some final thoughts on this topic.

Don’t, the newspaper reports, micromanage your kids’ finances. This “can prevent them from learning valuable lessons about finances. Allow them to make choices with their pocket money and discuss the outcomes together, helping them understand the consequences of their financial decisions. This will help them become independent.”

Similarly, don’t force kids to save, the Times suggests.

“Forcing children to save can lead to resentment and a lack of understanding about its importance,” the newspaper notes. Instead, teach the importance of saving “by setting savings goals together,” the article adds.

Finally, the Times asks us all as parents not to “depend on the school/teachers to teach” about money. Assuming they’ll learn about money in school can “lead to gaps in their financial knowledge.” Better to help their education by setting up fun saving and budgeting activities on the home front, the newspaper concludes.

One way we can help our older, adult children is to ensure that they are saving for retirement. If they can join a retirement savings program through their workplace, encourage them to join and contribute to the max.

If they don’t have a workplace pension program, let them know about the Saskatchewan Pension Plan, a voluntary defined contribution plan that’s open to any Canadian with available registered retirement savings plan (RRSP) room. One great feature that parents like – once someone makes contributions to the SPP, they are “locked in” until retirement. That prevents the retirement piggy bank from being raided in the decades leading up to the gold watch.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Two things Suze Orman feels we need to “get honest about” in our savings efforts

Writing for GoBankingRates, Laura Bogart reports that most people are “feeling a financial crunch” and are “tired of hearing that if you would only give up avocado toast, you’d instantly have enough money to retire on.”

Her article quotes well-known financial commentator Suze Orman as citing two basic things that people need “to get honest about” if they truly want to get their savings on track.

Orman, the article notes, felt “sad and concerned” when a recent CNBC survey found that “less than half of all workers feel even cautiously optimistic about having a secure retirement.”

“I am fully aware that for many households, the lack of optimism is not because of bad choices — spending too much, borrowing too much — but more a function that the cost of just getting by each month can make it hard to save more for retirement,” Orman is quoted in the article as having stated.

However, she states in the article, even if “times feel tough through no fault of your own,” we all need to “buckle down and get back on track with retirement savings.”

And it all starts, she states in the article, with “getting honest with yourself.”

Her first question is this – “are you really prioritizing your needs over your wants?”

She issues, in the article, this challenge: “No lip service, or casual commitment. I want you to carefully stop yourself every time you are about to spend money and ask yourself: Is it for a need or a want?”

Try this, she states in the article, for three months. “Be ruthless in asking yourself whether you really need to spend money on something or if it’s just to keep up with the Joneses. If your kids come begging for concert tickets or the latest smartphone, say no — no matter how hard it may be. You owe your children love and support, not front-row seats to the hottest show in town,” the article explains.

And, when you do spend, maybe it’s time “to consider reaching for a cheaper store brand or shopping at more budget-friendly outlets” rather than loading up on expensive “brand-name organic food,” the article continues. If you can, pick the least expensive option when shopping for cars and other major purchases, GoBankingRates advises.

When it comes to savings, Orman states in the article, “every $10, $20, $50 matters.”

The other key thought from Orman, the article continues, is this – “are you saving everything you possibly can?”

“If you are currently saving six per cent of your salary in a retirement account, change it to seven per cent, and set a calendar alert to bump that to eight per cent in six months,” she is quoted as saying in the article.

Other advice from Orman cited in the piece includes adding an extra $50 to your minimum credit card payment. Small changes – saving more, paying down debt faster – will add up, the article continues.

“Make sure you’re spending only on needs, not wants, and at the same time, save, save, save as much as you can. It’s really that simple,” the article concludes.

The idea of gradually increasing your retirement savings rate by small increments is an achievable one for members of the Saskatchewan Pension Plan. SPP allows you to decide how much you want to contribute to your retirement nest egg – you can set up pre-authorized contributions from your bank account and can ask us to increase them whenever you want. More contributions increase your savings nest egg, which is win-win for your future you.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Many of us, especially those longer in the tooth, picked up a guitar in high school and have dragged it around ever since, occasionally trotting it out to pick out the opening notes of Stairway to Heaven.

But the experts say taking up an instrument more seriously in your later years can actually be more than a party trick, but a boost to your overall health. Save with SPP scoured the Interweb to find out a little more on this topic.

At the New Music World website, we find out that “research has shown that playing an instrument can improve literacy and math skills, enhance verbal memory, spatial reasoning and cognitive function, as well as increase discipline and time management skills.”

Wow!

Physical benefits of playing an instrument, the article continues, include “improved hand-eye coordination and increased fine motor skills.” Your mental health, the article adds, benefits from “reduced stress and anxiety” and “improved memory and cognitive skills.”

And on the social interaction side, playing an instrument can present “opportunities for collaboration.” We remember our basement high school band fondly – a very loud and badly tuned memory, but a good one.

The article says there are also emotional benefits that come with playing an instrument, as playing “allows you to express emotions” and can increase your empathy skills.

Canadian music company Long & McQuade provides some more thoughts on the topic.

Playing an instrument, the article notes, “promotes brain development in the same areas related to language and reasoning skills for children. Studies show that children who learn music tend to perform better in math and reading.”

It’s also a benefit, the article suggests, to your personal growth.

“Music is a lifelong journey. Learning to play an instrument provides endless growth opportunities, whether you’re a child taking your first lessons or an adult returning to an instrument after years away,” the article notes.

“Learning music encourages a mindset of lifelong learning, pushing yourself to improve and expand your skills and craft. This quest for knowledge can lead to newfound passions and interests that enrich life and make you feel like you are `levelling up,’” the article concludes.

The Scientific Origin blog points out a few more benefits of learning to play.

Music playing “increases discipline and patience,” the blog notes.

“The daily commitment to practice teaches musicians how to manage their time effectively and stay focused on their goals. For children, this structured discipline often carries over into their schoolwork and extracurricular activities, helping them develop better study habits and time-management skills,” the blog notes.

It also boosts your individual creativity; the blog tells us.

“Music provides a vast canvas for self-expression, allowing you to explore and experiment with different sounds, melodies, and rhythms. As you grow more proficient with your instrument, you gain the freedom to compose your own pieces, improvise, or re-interpret existing music in unique ways. This creative exploration strengthens your ability to think outside the box and approach problems with an innovative mindset,” the blog states.

Some final thoughts come to us from the Musical Pursuits blog.

Playing an instrument can help ward off “age-related hearing loss,” the blog reports.

“Many studies prove that musicians are less susceptible to the deterioration of the auditory cortex. It means they can hear better despite the aging process,” the blog adds.

The final, and most important thought from all the articles is that playing music makes you happy.

“Science reveals that music releases a chemical in your brain called dopamine, which not only improves your mood and decreases anxiety, but also helps the production of stress-reducing cortisol, inducing pleasure, joy and motivation,” the blog tells us.

A lot of the findings listed here have been borne out by our personal experiences. Our late father was a fine pianist – even when battling dementia, he could still play any song anyone called out, always in the key of C. There were other folks in the memory care ward who didn’t speak much but could still play harmonica or accordion.

Our mother’s folks played mandolins together for all their long marriage, and grandma lived to a ripe old age of 98.

We have had the time to play more often since our retirement from full time work over a decade ago, and we’re getting a little better. The dogs now lie down and listen rather than howling for an end to it – progress!

Getting out of the workforce is one thing, but being able to afford post-work life is another. As we always say, look for work in your younger years where a pension or retirement program of some type is offered. If there isn’t such a program where you work, consider the Saskatchewan Pension Plan, which is available for individuals to join, or can be leveraged by organizations as their company pension plan. You provide the contributions, we do all the rest – investing your savings dollars in a low-cost, professionally managed pooled fund. At retirement your income options include 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!

What to do if your savings have dried up – and you are still going strong

A recent article from MoneySense explains that even if we outlive our savings, we still have some options.

Not everyone, the article begins, is able to save for retirement, or has some sort of pension program at their workplace. The article cites the example of Cheryl, 60, “a single parent with low income” who suffered a workplace injury and is now receiving modest Ontario Disability Support Program benefits.

Or Shannon, who along with her husband works full time, but is struggling to make ends meet, the article continues. “We have good educations and somewhat good jobs,” she tells MoneySense, “but at the end of the month, there’s not much left over.

“Canadians today are living longer than previous generations, and not everyone has the financial means to support themselves throughout retirement. According to the latest data from Statistics Canada, six per cent of Canadian seniors lived below the poverty line in 2022. And at present, nearly eight per cent of food bank clients are seniors,” MoneySense reports.

So what should you do if you have run out, or are running out, of savings? MoneySense has some suggestions.

Be sure, the publication advises, to file your income taxes on time. “If you’re a low-income earner who isn’t filing their taxes, you’re missing out on all sorts of benefits. It’s one of the worst things you can do financially,” certified financial planner Jackie Porter tells MoneySense.

For example, low-income seniors who file their taxes on time are “automatically enrolled for the Guaranteed Income Supplement starting at age 65 and receive tax-free payments on a monthly basis.”

Next is budgeting – do you have one and are you sticking to it, the publication asks.

“Take a good look at your budget and cash flow,” MoneySense suggests. “Answer this question: does your income (including Canada Pension Plan and Old Age Security and other government payments) cover your fixed and variable expenses? Expenses can include rent or mortgage payments, insurance premiums, car payments, groceries, entertainment, etc. If your income falls short of your expenditures, establish a budgeting goal based on the gap that you’ve identified,” the publication continues.

OK – be sure you are signed up for any government programs and are spending less than what you bring in. What other thoughts does MoneySense have?

Low-income homeowners might want to consider a reverse mortgage, the publication reports.

“Here’s how it works: If you’re 55 or older, you may be able to borrow up to 55 per cent of your home’s appraised value. These funds are tax-free and can be received in a lump sum or monthly installments. Interest is charged on all borrowed funds, but the balance isn’t typically due until the home is sold or until the last surviving homeowner dies (whether that’s you, your partner or a property co-owner),” MoneySense advises.

You may, the publication continues, be able to access some of the cash value in your term or whole life insurance policy. “Cashing out the policy means you’ll have some money but no life insurance, while borrowing against the cash value means you’ll get a loan while retaining the policy,” MoneySense notes, adding that those considering this option should first seek professional advice.

There’s a way to take some or all of your savings to produce an income stream that won’t run out – converting savings to a lifetime annuity payment. This is an option for retiring members of the Saskatchewan Pension Plan. With an SPP annuity, you’ll receive a monthly payment for life, and depending on the option you choose, your surviving spouse or beneficiary may be eligible for benefits when you pass away.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!