New RetireMint platform helps with both money and non-money sides of retirement

Writing for MoneySense, Jonathan Chevreau explores a new Canadian retirement platform that covers both the financial and non-financial aspects of retirement.

The Canadian platform, he writes, “isn’t just another retirement app that tells you how much money you need to be able to retire in comfort. It spends as much or more time on the softer aspects of retirement in Canada: what you’re going to do with all that leisure time—travelling, part-time work, keeping your social networks intact and so on.”

In fact, adds the well-known financial writer, the advice in the app reminds him of previous books he has authored and co-authored, including Victory Lap Retirement and Findependence Day.

Chevreau notes that the platform’s “mission statement is: `Helping Canadians retire better, faster and more prepared.’ It also bills itself as `Your guide to the modern retirement.’”

RetireMint’s CEO Ryan Donavan tells MoneySense that “retirement has become so synonymous with financial planning, and so associated with ‘old age,’ that they’re practically inseparable. Yet, in reality, retirement is a stage of life, not a date on the calendar, an amount in your bank account, and is certainly not a death sentence.”

As well, he continues, while financial planning for retirement is key, since “you won’t even be able to flirt with the idea of retirement without it,” life after work is much broader than just money.

Okay – so what can the app do to help with the “non-money” side of retirement?

There are 14 topics on the platform “ranging from the obvious ones, like estate planning and insurance, to less apparent matters, like hobbies and the psychological shift into retired life,” MoneySense reports. Donovan tells MoneySense that an eye-popping 8,000 Canadians per week will reach retirement age over the next 15 years, but “more than 60 per cent do not know their retirement date one year in advance, and more than a third will delay their retirement because they don’t yet have a plan in place.”

The idea of having something to do with one’s time post-work is very key, the article notes.

There’s a very high suicide rate amongst those of us age 50-64, 65-84, and 85 plus, the article warns. Those of us over 65 have “a divorce rate three times the national average,” and with 25 per cent of our seniors in social isolation, there’s a 50 per cent increase in the chance of them developing dementia, the article continues. Seventy-seven per cent of seniors, the article concludes, “live with at least two chronic illnesses or conditions.”

Having a plan for your time, and not just your money, can make a positive difference, the article contends.

The average retirement, Donovan tells MoneySense, lasts for 22 years. “In each of those years, you will have more than 2,000 hours of new-found free time that would have been spent working throughout the majority of your life.” 

We agree with these thoughts. You need to be sure to have something to do, and people to do it with. And retirement can be the best time of life.

Many Canadians don’t have a retirement program through the workplace. If you’re in that group, there’s a retirement savings ally you need to be aware of. The Saskatchewan Pension Plan has the investment expertise and experience that you lack. They’ll take your hard-saved retirement dollars and will invest them in a low-cost, professionally managed pooled fund. At retirement, you’ll be able to choose from options like a lifetime monthly annuity payment, or the more flexible Variable Benefit. Check out SPP today!

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For the vast majority of people, retirement is a far-away, unknown and somewhat scary idea – having to live on the money you’ve saved (gulp) because you’re too old to work.

In fact, according to The India Times, research this year by LiveCareer in the U.S. found that “61 per cent of workers fear retirement more than death, and for a large segment of participants (64 per cent) the thought of retiring is scarier than the idea of getting a divorce.”

But, reports the Starts at 60 blog, there is a solution for those who “at the end of a long and fulfilling career… (are) feeling lost about their purpose in life.” That solution is finding a post-work hobby.

“One’s golden years can also present an opportunity to rediscover meaning and purpose and one way to do this is through hobbies,” the blog notes. “Many individuals have found new meaning and fulfillment in their lives by pursuing hobbies and interests that they may have neglected earlier in life due to work and family commitments.”

The blog says you can pursue “creative endeavours such as painting or writing, or outdoor pursuits such as hiking or gardening. Hobbies can bring a sense of joy and create new experiences, encourage a sense of community, and help maintain a healthy lifestyle.”

The chief benefits of having a hobby for those over 60, the blog continues, are that the hobby can “provide a sense of purpose and fulfillment in later life, offer an escape from daily routines and stress, stimulate creativity and personal growth, and provide a sense of accomplishment.”

“Hobbies can also bring joy, satisfaction and a sense of achievement to one’s life, as well as provide opportunities to socialise and connect with others who share similar interests. Furthermore, hobbies can also help keep the mind and body active, leading to a healthier and more fulfilling retirement,” the blog concludes.

There are other, more specific health benefits from staying active (via hobbies) in retirement, reports the U.S. National Institute on Aging.

An article on the organization’s site lists the following benefits for those with hobbies, who:

• “Are less likely to develop certain diseases. Participating in hobbies and other social activities may lower risk for developing some health problems, including dementia, heart disease, stroke, and some types of cancer.”
• “Have a longer lifespan. Studies looking at people’s outlooks and how long they live show that happiness, life satisfaction, and a sense of purpose are all linked to living longer. Doing things that you enjoy may help cultivate those positive feelings.”
• “Are happier and less depressed. Studies suggest that older adults who participate in activities they find meaningful, such as volunteering in their communities or being physically active, say they feel happier and healthier.”
• “Are better prepared to cope. When people feel happier and healthier, they are more likely to be resilient, which is our ability to bounce back and recover from difficult situations. Positive emotions, optimism, physical and mental health, and a sense of purpose are all associated with resilience.”
• “May be able to improve their thinking abilities. Research suggests that participating in certain activities, such as those that are mentally stimulating or involve physical activity, may have a positive effect on memory — and the more variety the better. Other studies are providing new information about ways that creative activities, such as music or dance, can help older adults with memory problems or dementia.”

OK, time for a mid-post recap – hobbies not only help give you a renewed sense of purpose, but you may develop a new community of friends, be healthier, live longer, and think more clearly. Our line dance instructors frequently tell us seniors that dance not only helps our bodies through exercise, but it helps our minds as well – we are forever learning new steps and new dances.

If you are a happy nine-to-fiver grinding away at an important job somewhere, the idea of getting a hobby may seem a little silly. But, reports Forbes, it’s the workaholic who should be thinking about life after work the most.

“People with hobbies and activities before retirement can transition more easily than workaholics with few interests beyond their jobs. This bears consideration before retirement,” the magazine warns.

If you don’t plan to do something, ideally new or more often, after you’re done with your name tag, you may have an unhappy retirement, Forbes continues.

“Many retirees lead interesting lives, but a fair number are bored a significant amount of time. Some have few social connections. Yet still others enjoy life more than ever,” the article concludes.

You really have to think outside the box after life after work. If anyone had told us 15 years ago that we’d been teaching line dancing to seniors, going on a trip to Nashville with fellow line dancers, or taking a line dancing cruise, we’d have laughed. But we’ve had great new experiences and developed a new set of friends thanks to this one easy, fun hobby.

Certainly, the “what to do with all the time” side of retirement can be a challenge, and for many, so can the financial saving side of things. If you’re relying on your own efforts to fund your future retirement, a great partner is waiting in the wings to help you – the Saskatchewan Pension Plan. Designed for both individual savers or for use as a company pension plan, SPP collects contributions from its members, invests them in a low-cost, professionally managed pooled fund, and grows them into retirement income choices that include a lifetime monthly annuity or the more flexible Variable Benefit.

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Canada’s retirement system ranked 13^th in the world

New retirement rankings from Natixis Investment Managers show Canada’s retirement system is ranked 13^th best in the world, reports Wealth Professional.

Canada was 14^th in 2023, the publication reports, citing data from The Global Retirement Index produced by Natixis annually.

“Globally, the study shows a stabilizing retirement outlook but it notes that individuals are feeling the pressure as more come to the realization that they are on their own when it comes to funding income later in life,” the article notes.

“Canada’s metrics are solid in areas such as the health sub-index which is boosted by life expectancy, quality of life, and finances – although it’s highlighted that the Bank of Canada has been less successful than some peers on making progress with inflation,” the article continues.

South of the border, the U.S. retirement system has fallen to 22^nd place in the Index’s ranking of 44 countries. There, “the wellbeing metric has been impacted by rising unemployment.” On the plus side, the data found that the U.S. gross domestic product was showing the highest rate of growth.

A related Natixis study – the Global Survey of Individual Investors – found that “27 per cent of respondents said that even if they saved $1 million, they still couldn’t afford to retire,” Wealth Professional reports. Worse, that result includes people (24 per cent) who have already saved $1 million!

“As individuals increasingly take charge of their retirement planning amidst these challenges, financial service providers must become more proactive in supporting them,” states Liana Magner, Executive Vice President and Head of Retirement and Institutional in the U.S. for Natixis Investment Managers, in the article. “To prevent future crises, it’s crucial to offer personalized solutions that address both the current economic landscape and individuals’ specific retirement needs, including access to both public and private markets.”

We frequently point out that the benefits offered to the average Canadian via the Canada Pension Plan (CPP) and through Old Age Security (OAS) are quite modest.

This year, the maximum gross income a 65-year-old can get from CPP is $1,364.60, according to the federal government’s own website. That same 65-year old would receive, at the most, $713.34. So just over two grand, maximum, before taxes.

If you belong to a workplace pension plan or retirement program, you’ll get extra income on top of that. Be sure you are signed up and contributing to the max.

If you don’t have a workplace pension plan, the Saskatchewan Pension Plan may be just the ticket for you as an individual, or as a business owner thinking about offering your team a pension program. In either case, once contributions are coming in, SPP does all the investing and administration work, issuing annual statements, contribution slips and T-slips for retirees. A great, all-Canadian resource for individuals and organizations to save for retirement!

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In her excellent book The Pink Tax, author Janine Rogan contends that we are living with a financial system that is “designed to keep women broke.” Her book walks us through the situation and offers sage advice and strategies for women to use to fight back.

She defines the Pink Tax as a system where women are paid less for the same work but are expected to pay more for goods and services. “I’ve seen pink-branded calculators, earplugs, kids’ helmets and clothing that cost more – it’s everywhere. Although it may seem like a few dollars and cents don’t make a big difference, it adds up. The Pink Tax costs women $82,000 by the time they are 60, and that figure only includes the things the researchers were measuring.”

Rogan advises us to “demand financial equality,” to “build wealth for self-care,” to “support new moms” and to “vote for your daughters.”

Pay gap: Speaking about the pay gap, Rogan notes that it wasn’t “until 1963 that employers (in the U.S.) were required to pay women equally for jobs that entailed the same skill effort and responsibility.”

Expanding the discussion of the wage gap, Rogan notes that not only are women paid “83 cents on the dollar” versus men, but they are “twice as likely to be in part-time jobs… (and) miss out on advantages such as health benefits or retirement contributions, which full-time positions offer.”

She recalls finding out that a man with equal standing and the same role at her company “was making $13,000 more than I was.” Lower wages mean “less money to save and to invest. The wage gap turns into a savings and investing gap, fuelling the wealth gap.”

Wealth gap: A career-long pay gap translates to a wealth gap, she explains. “Even women in the top one per cent have disproportionately lower incomes than their male counterparts, earing on average $362,000 per year while men in the top one per cent earn $392,000.”

Rogan feels that it is time for women “to take back the fight… to take the power of your money into your own hands so that together we can remedy women’s financial undereducation and all of the other inequities… let’s demolish that gap entirely!”

Noting that only 30 per cent of the world’s wealth is held by women, Rogan suggests that the “travesty on unpaid caregiving work… compounds the wealth gap. Globally, women and girls put in 12.5 billion hours per day of unpaid care work. We would add $12 trillion to the global economy per year if we began paying women and wage minimum wage for their unpaid caregiving work.”

Building wealth for self-care: “Building your wealth is a form of self-care,” writes Rogan. “Building wealth means having a financial cushion to rely on if life takes a turn for the worse.”

She walks us through a way to manage your money by aligning finances with your values.

“My top three values are spending time with the people I love and care about most (my baby and my hubby), exploring the world, and feeling financially secure,” she explains.

“Knowing what’s important to you helps you define where to allocate your money, which is a basic premise of budgeting… a spending plan for your hard-earned dollars,” she continues.

Noting that women face “up to 35,000 decisions” per day, a key to managing financial decisions is to automate things as much as possible, particularly bill payments.

“Because we are paid on the 15^th and 30^th of each month, we set up our money transfers – from chequing to savings, chequing to investing accounts, and chequing to bills – for the 16^th and the first.” Taking basic financial transactions off the constant list will “lighten your mental load,” she suggests.

She uses the same approach to automate savings for large, planned expenses – a monthly contribution to a planned Hawaii trip, another one for the child’s education, for TFSA saving and “long term savings goals, such as retirement.”

Even if you go the automation route, Rogan recommends you set up a “money date” once or twice a month to review your progress on savings and expenditures, a chance to “identify any bills you could potentially lower or subscriptions you could cancel.”

Be sure you and your partner “talk about money early and often,” discuss “your values and spending styles,” and “manage the household finances together.”

At work, she writes, don’t be afraid to ask for a raise – 68 per cent of women don’t.

While there is still much work to do to achieve gender equity, Rogan notes that “we don’t have to look far to find amazing examples of countries advancing gender equality every year.”

“Personally,” she concludes, “I’d like to see us get there in my lifetime.”

Automation is available for members of the Saskatchewan Pension Plan. You can set up pre-authorized contributions to SPP from your bank account, and you can pick the dates to coordinate with your pay dates so you are paying yourself first. You can also automate payments by setting up SPP as a bill, and using online banking. This “set it and forget it” approach is a way to build your retirement nest egg easily and automatically.

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Can there really be too much frugality?

All of us are looking for ways to get things for less. Thanks to a tip from a line dancing pal we were able to find a speaker we can use at dance class on for half price at a discount centre 30 minutes south of us.

We look for bargains, use coupons and get discounts – but can the frugality thing be taken too far?

Writing for CTV News, Christopher Liew says yes.

“While there’s nothing wrong with being frugal, there’s a darker side when saving becomes an obsession. Being overly frugal can negatively impact mental health, relationships, and your overall quality of life,” he warns.

“If you’re like most, you’ve no doubt experienced inflated grocery costs, rental rates, fuel expenses, and more,” he continues. “In fact, 69 per cent of Canadians reported that they were concerned about their ability to absorb an unexpected expense of $1,000 or more, according to a recent study by survey giant Ipsos.”

Liew’s list of “the best ways to be frugal” includes:

•  Using coupons when shopping for groceries
•  Cooking at home instead of eating out
•  Cutting back on entertainment spending
•  Decreasing streaming subscriptions
•  Thrifting instead of buying new items

Such steps can save you “hundreds of dollars per month, which is money you can put towards bills, saving for retirement, or simply building your emergency savings fund,” he explains.

So when does frugality become a negative? Liew explains it well.

“Unfortunately, almost all good things can become negative when taken to the point of obsession or excess – including frugality,” he writes. He cites a recent poll by Dialogue (partnering with Environics) that found that 28 per cent of us are “struggling in daily life” due to financial stress, while 27 per cent “are seeing their work suffer” because of it.

That can lead to “the concept of loss aversion in behavioural economics, where the fear of losing money outweighs the pleasure of gaining it,” the article continues. “This anxiety can lead individuals to adopt overly frugal habits, which may cause them to hoard savings rather than spend on necessary or enjoyable experiences.”

What are some signs to watch out for?

Liew says excessive frugality can lead to “strained relationships… constantly refusing social outings or being overly concerned about every expense can lead to conflicts and feelings of resentment.”

You also miss out on good experiences, he writes. “Avoiding spending money on activities like travel, dining out, or cultural events can limit personal growth and enjoyment of life,” warns Liew.

There are also health risks by those who don’t want to spend more for better food, or a gym membership. “Cutting corners on your health can lead to even more financial problems later in life,” the article notes.

Liew’s prescription for more healthy frugality involves having more flexible budgets, setting spending priorities, and – if it still isn’t working out – getting professional financial advice.

His final tip is to “automate” your savings – rather than having to remember to save each month, or payday, use technology to do it for you, through pre-authorized contributions to your savings plan.

The Saskatchewan Pension Plan is a flexible partner when it comes to setting up your retirement savings. You can set up pre-authorized contributions from your bank account that can, for example, coincide with your paydays. Money gets popped into your SPP before you even notice it; you are paying your future self first. Alternatively, you can set up SPP as a “bill” via online banking and contribute that way. You can even make contributions online via a credit card!

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When we were younger – even though we worked at a pension plan – we couldn’t quite imagine what it would be like to be retired. With no job to go to, what were we going to do?

We met a couple at the local mall 20 years ago or so who were retired and said that “you’ll never be able to understand how you found the time to work,” which was sort of helpful while at the same time, baffling.

We get it now, of course – but who do others who have slipped the bonds of employment feel about their retired life. Save with SPP did a little digging to find out!

The Travel Awaits blog gives us a few nice views on the subject.

“Retirement is not the end of your former life, but a fresh new beginning,” says Joyce, who left the world of corporate work at 62 and has moved to warmer climes in Panama. She does not miss “the long commutes or rigidity of working,” and urges others to “spend time planning what you want to do” before retiring.

Mark tells Travel Awaits to “retire as soon as possible. Life is short.” After retiring at 58, the former electrical engineer spends his days hiking, reading, and attending air shows. He says he enjoys “being in charge of how he spends his days.”

At the Retirement Online website there’s a list of quotes from happy retirees.

Craig Counters of Bloomington, Minn. says retirement “has been everything that I hoped for,” noting that he is “in no way bored with my retired life. I have plenty to do. Too much in fact.”

Cindy Petzoldt of St. Louis, Mo., was diagnosed with depression just prior to retirement, but is now “so stinkin’ happy” that her medications have been cut in half. She volunteers with a choir that performs for dementia patients, is a Ready Reader to help pre-schoolers learn to read, took classes in meditation, and stays connected with fellow retired coworkers.

“I am WAY BETTER than fine. I am incredibly happy and fulfilled, doing meaningful volunteer activities I enjoy,” she reports.

At the Kiplinger Personal Finance website, retired pilot Gary Dyson now volunteers for the Orbis Flying Eye Hospital and mentors “aspiring eye health professionals” in different countries.

His work helps people improve and even regain their eyesight.

“There is nothing in the world like it – especially knowing that it will drastically change that person’s life, allowing them to read, learn, work or support their family. Having a small part in that is very rewarding to me,” he tells Kiplinger.

Let’s leave the last word to The New York Times.

Kris Kruid, age 65, tells the newspaper “I set the goal of making retirement look good to others and finding ways to make these chapters of my life full of adventure, rewarding interactions and opportunities to make a difference in the lives of others.”

“My motto is `Do good, be good, get good.’ I’m 14 years into the best years of my life.”

Are you saving today for the future best years of your life? A trusted savings partner is the Saskatchewan Pension Plan, which has been helping Canadians save for more than 35 years. Every dollar you contribute to SPP is professionally invested in a low-cost, pooled fund, and when it’s time to retire, your invested savings can be turned into income via such options as a lifetime monthly annuity or the more flexible Variable Benefit.

Check out SPP today!

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Starting public pensions earlier might alleviate senior poverty: report

At a time when many retirement experts are extolling the virtues of starting government pensions later in life – in order to get a bigger monthly amount – a new report suggests starting them earlier may be a way to reduce senior poverty.

According to an article in The Financial Post, a report from the Global Risk Institute suggests that “lowering the early eligibility age (for government pensions) can help one group in particular: workers with lower incomes.”

The Institute’s report says starting pensions earlier than 65 “can put lower-income seniors in a better place financially and reduce the poverty rate among seniors as well.” In Canada, you can begin receiving Canada Pension Plan (CPP) payments as early as age 60, the article notes.

“The report , which examined two Canadian pension reforms that took place in the 1980s, which dropped the early eligibility age (EEA) to 60 from 65, concluded that lower-income retirees have financially benefited by claiming their pensions earlier,” The Post reports.

Those who start their CPP at 60 will receive a pension that is 36 per cent smaller than those who start it at 65, the article explains. Waiting until after age 60 to claim your pension means your future pension increases by “0.7 per cent each month, or 8.4 per cent per year,” the article adds.

“But lower-income retirees have a shorter life expectancy than retirees with higher incomes, which means they might not live long enough to reap those benefits. They might also require a boost in funds sooner just to accommodate the rising cost of living, which means claiming early isn’t just the smarter financial decision; it’s often the only financial decision they can afford to make,” The Post reports.

Even Dr. Bonnie-Jeanne MacDonald of the National Institute on Ageing, a proponent of waiting until you are 70 to collect CPP, agrees that if you need the money when you’re 60, it’s “a no brainer” to start taking it then, the article reports. “MacDonald, who has long advocated for Canadians to delay claiming their pensions, authored a report earlier this year that noted Canadians can receive 2.2 times the monthly pension at age 70 than if they claimed them at age 60,” The Post reports.

Interestingly, the “penalties” (early retirement reductions) for Canada’s pension plan are “lower than in other countries, such as the U.S., making the choice much more attractive for lower-income Canadians who need the money sooner,” The Post notes.

The article concludes by noting that some OECD countries have looked at “increasing the age of retirement” by two to five years, with the hope of keeping older workers on the job. However, the article notes, “some studies have shown these reforms caused a `spillover’ effect on other social programs, such as employment or disability insurance, and made some groups more vulnerable to poverty.”

Let’s also keep in mind that the Canada Pension Plan’s maximum benefit for 2024 is only $1,364.60 at age 65 – while the average CPP payment is $816.52. If you don’t have a workplace pension plan, you’ll need to put away money on your own to bolster that future, rather meagre pension. Why not take a look at the Saskatchewan Pension Plan. It’s open to any Canadian who has registered retirement savings plan room. You decide how much to contribute to SPP, and we take on the heavy lifting of investing and growing your savings. At retirement, you can choose among options like collecting a monthly lifetime annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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As a teenager, we used to play golf at a course where the green fees were $5 if you teed off before 8 a.m. The three of us would chip in for gas for our old car – you could fill the tank for maybe seven or eight bucks because gas was about 77 cents a gallon. And when we got tickets to see AC/DC play at the Ottawa Civic Centre in 1980, it cost $7 a ticket. You could also get change from a dollar bill when you got a Happy Meal at the Golden Arches.

Today these activities all cost about 10-20 times more than they used to.

What’s a person to do for fun without spending hundreds of dollars? Save with SPP took a look around the Interweb for some ideas.

While camping at a site costs less than a trip to Disney World, The Humbled Homemaker blog suggests an even cheaper alternative – camping in the backyard!

“You can still have the whole experience—s’mores, campfire, sleeping bags and all—for a fraction of the cost. When I was in high school my friend would have `camp-overs.’ We’d stay in her parent’s camper in their driveway, make hot dogs over the fire and stay up really late,” the blog tells us.

Another suggestion – take the family to the zoo! Our daughter and her family do this all the time. “Zoos can provide entertainment for couples and families. Most are either free or reasonably priced and some will allow you to carry in food. If not, pack a lunch and eat in the car,” the blog advises.

A third idea is having a game night at home. “Extremely cost effective, or even free, board games are a great source of entertainment for groups of friends and families with children. We like to incorporate fun and learning with games and most holidays you’ll find us playing cards or fun games like ImagineIf.” Save with SPP remembers family game nights well, playing Monopoly, Careers, Clue, or cards.

Another way to reduce your entertainment costs, suggests the Canadian Budget Binder blog, is to do a little more planning and set a budget for it.

“Once you have determined your overall budget, you must allocate funds to different categories to help manage all your entertainment interests,” the blog advises. “For example, your categories include dining out, movies and streaming, events and activities, travel and vacations, and hobbies and leisure.”

“A set amount allocated to each category will help you track what you did and how much you already spent,” the blog suggests. “If you have an amount set aside for movie tickets and have nothing left, you must wait until the next month for more `movie ticket money.’”

Another approach, the blog recommends, is to look for “low-cost activities” and to use “deals and discounts.” The blog suggests going to “art shows, festivals, famers’ markets and concerts held in your community free of charge for entry.”

As well, make use of parks and trails, the blog states. “You can always explore hiking trails, beaches, or parks for free. Taking a day out of your busy schedule can mean simply taking a day off work, having a picnic in the park, or even catching the sun at the beach,” the blog adds.

The MoneyCrashers blog expands on the idea of looking for bargains. Online coupons can be found at sites like Groupon, and can offer “excellent discounts” on activities, food, or other entertainment.

Watch your physical mailbox for discount coupons on restaurants, including “two for one deals and half off coupons,” the blog notes. Keep an eye on event websites for special discounts and deals, and take note of restaurants offering “kids eat free” deals, the blog suggests.

If you have membership cards that provide you discounts on select items, use them, the blog adds.

Finally, the Tiny Buddha blog provides us with some additional thoughts.

“Have a picnic in the park and ask everyone to make something from scratch,” the blog suggests.

On the dining with friends theme, the blog also suggests having “cookie swap” parties, “hosting dinners with friends,” and having a “food themed” potluck party, where everyone brings something Italian, Thai, Chinese, or whatever the theme is.

Another suggestion is to “have a culture day – visit a museum on a free day, listen to classical music on the way, and watch a classic movie in the evening.”

If there’s a common thread here it is to use your imagination and plan when it comes to entertainment. We’ll add one other suggestion – join a group. Perhaps it’s a book club, an investing club, line dancing classes (or any dancing), yoga, running, or cycling. It’s a great way to learn something new while making new friends.

Did you know that the Saskatchewan Pension Plan is not only for individual members? The plan can be, and is offered by many employers as their company pension plan.

Here’s an interview with Trevor Stein of Stein Corp, a plumbing and electrical firm, that explains the value of offering SPP as a benefit to your employees: Stein Finds Talent with SPP (youtube.com)

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Retirement still feasible for 40-year-olds with no pension – but it takes work and commitment

So, you’ve hit the big 4-0 and are beginning to realize that life after work is no longer as far away as it once was.

If you’re 40 and aren’t a member of a pension plan, can you still fund – on your own – a decent retirement income for yourself?

According to a recent article in MoneySense, the answer is yes – but it will take a little work on your part.

“The key is to try to mimic the pay-yourself-first approach by setting up an automatic contribution to your registered retirement savings plan (RRSP) to coincide with your payday. A good rule of thumb to strive for is 10 per cent of your gross income. Remember, in most cases the employees blessed with a defined-benefit pension are contributing around the same 10 per cent rate (sometimes more) to their pension plan. You need to match those pensioners stride-for-stride,” MoneySense suggests.

OK, this makes sense – preauthorized contributions on payday mean you won’t have time to spend the money on something else, and after a while, you won’t miss it.

The article takes the example of “Johnny,” who makes $90,000 per year gross and contributes 10 per cent — $9,000 – annually to his RRSP. If he gets an average return of six per cent each year for 25 years, he’ll have $493,780.61 in his RRSP by age 65.

This example does not factor in any growth in Johnny’s wages. If his salary goes up each year and he continues to contribute 10 per cent to his nest egg, he’ll be contributing more than $9,000 per year, the article notes.

If Johnny got a three per cent raise annually for 25 years, MoneySense adds, then his RRSP will be more like $700,000 by age 65.

Assuming his mortgage is paid off, the article notes, Johnny will be able “to spend $40,000 per year (inflation-adjusted) until age 95.”

He will, the article adds, also get about $25,000 per year from the Canada Pension Plan and Old Age Security if he takes them at age 65.

That’s the second key point here – step one is to save 10 per cent of your gross earnings in an RRSP annually, and step two is to keep working until 65, and to collect government benefits at that age. “Working until 65 ensures he will get a robust retirement pension from the contributory CPP, plus he’s lived in Canada all his life and can expect to receive 100 per cent of his OAS benefits,” the article notes.

Retiring without a mortgage is another important aspect of this example.

“The ace up the sleeve for Johnny’s retirement is his mortgage-free home. It amounts to equity he could tap by downsizing, selling and renting, taking out a line of credit or using a reverse mortgage if he found himself needing cash flow or a lump sum of money in retirement,” the article explains.

This sounds great, but MoneySense notes that it can be greater. If Johnny were to also save three per cent of gross earnings in a Tax Free Savings Account, he will have an additional $355,000 in savings, bringing his total to over $1 million.

The TFSA would allow him more money to withdraw each year, boosting his income to $45,000, the article reports.

Another tactic Johnny could employ would be to delay his CPP and OAS until age 70, when he would get “42 per cent more CPP and 36 per cent more OAS,” the publication notes.

This article makes a lot of sense. Our late Uncle Joe was a strong believer in the “pay yourself first” concept of putting 10 per cent of your gross income into savings, and then living on the rest.

The Saskatchewan Pension Plan (www.saskpension.com) works well for “pay yourself first” savers. SPP allows you to set up pre-authorized contributions that can coincide with your pay dates. Or, you can set up SPP as a bill via online banking and pay yourself as well as the power, heat, and other bills. While Johnny will have to figure out what to invest in, SPP does that heavy lifting for you, in a professionally managed pooled fund. And when it’s time to withdraw money, SPP offers the chance of a lifetime monthly annuity payment or the more flexible Variable Benefit option.

Check out SPP today!

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There’s a room in our basement that we euphemistically call “the storage room,” chiefly because it holds all our accumulated family clutter. Toys, books, stamp collections, ancient stereo equipment, records, unneeded furniture – the list goes on and on.

We both occasionally spend a few minutes looking at the growing collection, then close the door.

But there’s a better way to manage things you don’t want or need – having a garage sale. Save with SPP took a look around to learn the dos and don’ts of putting your stuff up for sale in your laneway.

The KindaFrugal.com blog sees a garage sale as a way “to recoup some of the sunk costs from all the gently used items you’ve accumulated.” But, the blog advises, doing a garage sale properly requires a little strategizing.

“Pick the right day,” the blog advises. “Pick a weekend at least one week in advance, but two weeks ahead might be better if you have a lot of stuff to sell. That gives you time to get everything ready without feeling rushed.”

Sundays, the blog adds, seem to be the best days for it.

Next, the blog says, do a thorough check of the house and gather up all the stuff you want to sell. “Good sale items include old furniture, tools, computer stuff, dishes and other household items, books, appliances, vintage items, toys, kitchen gadgets, sporting goods, and other unwanted items,” the blog continues.

Be sure to clean/dust every item, and check pockets of all clothing – you don’t want to be selling your spare keys, important papers, or money.

Getting the word out about your sale is of crucial importance, notes The Garage Conundrum blog.

Social media can be a big help here, the blog says. “Create an event on platforms like Facebook to tap into a wide local audience. Highlight key items for sale with photos to pique interest and drive foot traffic. Share the event in community groups to maximize visibility and attendance,” the blog advises. We used Kijiji to help promote our sister-in-law’s garage sale, and it generated a lot of interest.

You also want to set prices for your items, the blog suggests, and those price tags should be able to withstand the elements. “Weather-proof pricing labels endure the elements, ensuring prices remain visible regardless of weather conditions. These labels stick firmly to items, preventing them from blowing away or getting lost during the sale. With clear labeling, customers can quickly identify prices, streamlining their shopping experience,” the blog suggests.

Other ideas in the article suggest displaying any more valuable or collectible items in a separate area/table, and to set a “flat rate” for things like books and CD – if you take 10, say, they are $1 each but otherwise $2 each. This pricing idea “helps clear out inventory quickly,” the article tells us.

A few more insights are on offer over at Better Homes and Gardens magazine.

Scope out other garage sales in your neighbourhood “to gather intel on what works, what doesn’t, and how to price everything to sell,” the article suggests.

Another tip – “price as you gather your items,” the magazine advises. Pricing, the article continues, takes forever and “you’ll be too stressed and tired to make good choices” if you try to do it all the night before.

The article also says social media is the way to go for advertising, but says a few old-school signs and banners help as well. “Always include your full address, the days of the sale, and times.” Indicate if you are able to accept other forms of payment besides cash, the article notes.

The Money Smart Family blog gives us some final good ideas.

Consider minimizing the work by joining forces with neighbours and doing a multi-family sale, the blog states. Talk the sale up with neighbours prior to sale day, e-mail or message friends who live farther away, the blog adds.

Use tables so people can see the items better. “Gather as many tables as you can.  Use sawhorses with doors or pieces of plywood if you have to. You’ll sell more if what you display isn’t super-cluttered. We even build a rack for shoes out of wood scraps and put mini-shelves in the middle of tables to give us more space on the tables,” the blog advises.

If everything goes well, you’ll have turned most of the items into cold, hard cash. In our neighbourhood, items that don’t sell are usually put by the curb with a “free” sign, and usually disappear within a day or two. Alternatively, you can donate them to your local thrift shop.

A nice use of any sudden, extra cash is long-term saving. Consider opening an account with the Saskatchewan Pension Plan. For over 35 years we have been helping Canadians save for retirement. SPP, open to any of us with unused registered retirement savings plan room, will professionally invest your savings dollars in a low-cost, pooled fund. When it’s time to turn savings into retirement income, you can choose such options as a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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