SPP touted as a do-it-yourself retirement program

A recent Financial Post article outlines a major problem – how so many Canadians lack a workplace pension plan – and then shows how the Saskatchewan Pension Plan (SPP) can provide a do-it-yourself option.

The article, written by Sigrid Forberg, notes that the old days of working your entire career for one company, and then getting a pension from them, are “long gone.”

While 5.5 million Canadians were covered by “either a defined benefit or a defined contribution plan” by the end of 2019, that means that “only 37 per cent of Canadians are covered by a pension plan – leaving the other 63 per cent to save for retirement on their own.”

In the article, Wendy Brookhouse of Black Star Wealth in Halifax looks at the options those without workplace pensions have for saving.

“There are a lot of preconceived notions, there’s lots of rules of thumb out there that may or may not serve people, you know … ‘you need a million dollars to retire,’ or ‘you need X per cent of your pre-retirement income,” says Brookhouse.

Workplace plans make the savings simple, as an amount is deducted directly from your paycheque. But if you don’t have a plan at work, putting away money on your own “might feel like a big sacrifice,” Brookhouse states in the article.

Brookhouse recommends regular savings on your own, via either a registered retirement savings plan (RRSP), a tax free savings account (TFSA), or even life insurance.

Or, the article continues, Canadians without workplace plans could take a look at the SPP.

“Another option for those without workplace pension plans is the Saskatchewan Pension Plan (SPP). This plan was created by the Saskatchewan government in 1986 to help fill the gap for residents of the province who didn’t have access to a professionally managed pension plan. The program has since been expanded to all Canadians,” the article notes.

“The goal was to provide a collective non-profit — a trusted collaboration where people could finally get the really low fees they typically would get through a professionally managed plan,” states SPP’s executive director Shannan Corey in the article.

“In 2022, you can put up to $7,000 into the fund, depending on your personal RRSP contribution room. The fund currently has 33,000 members, with about $600 million invested. The historical returns are about eight per cent and annual fees are less than one per cent,” the article states.

With SPP, your contributions are locked in until you reach age 55, the article notes. At that point (or any time before you reach age 71) you can decide to convert your SPP savings into income, either by drawing the income down and/or receiving an SPP annuity. Saskatchewan residents have the added option of a variable benefit, the article explains.

“Our plan was designed for people who had gaps,” says Corey in the article. “The flexibility that we offer can really help people navigate those ups and downs a little better.”

Without having some sort of do-it-yourself retirement program in place, your options might be limited to working longer. The article cites the views of an actuary who argues that government pension benefits, which currently must be collected by age 70, should be allowed to be deferred to age 75. Do we really want to keep working that long?

Save with SPP can attest to the effectiveness of the SPP program; both this writer and our better half are members. There are no pre-set contributions, you can contribute in dribs and drabs up to $7,000 per year. So for us, small lottery wins, insurance payouts on dental visits, rebate cheques, and bottle deposits are sources of retirement savings. We also take advantage of making lump sum transfers from our other RRSPs into SPP.

Now, with retirement in sight for the boss, our SPP estimate says we are on track for a $500 monthly lifetime annuity payment for her next year.

SPP invests your money at a very low fee compared to typical retail mutual funds, and you are getting investing expertise at a time when markets are volatile and even a little scary. It’s an option that anyone lacking a workplace plan should check out – an all-Canadian pension solution built with Saskatchewan ingenuity! Check out SPP today.

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If you’ve ever felt pushed around by your personal debt, and how it interferes with your life plans, then Money Like You Mean It, by Erica Alini of Global News, is the book for you.

The reason, she begins, that so many of us “have so much debt” is not just because “of the choices we’ve made or because of our individual circumstances.” The fact that we live in a world where it is extremely easy to borrow has created a reality where Canadians hold over $2 trillion in household debt.

“That’s roughly equal to the size of our entire economy… (or) the value of all the goods and services we produce as a country,” she explains.

Credit cards have never been easier to get, and “with a typical annual interest rate of 20 per cent, they can sink you into debt really quickly.”

Home equity lines of credit (HELOCs) can be even easier. Alini quotes Scott Terrio, who recently chatted with Save with SPP, on this topic. HELOCs are dangerous because “your ability to borrow is often tied to your home equity – the portion of your house you truly own.” Your home’s equity grows as you pay down your mortgage, so HELOCs run counter to that trend. The average Canadian with a HELOC has a credit limit of $180,000 and owes “a whopping $67,000,” she writes.

But Alini offers some ways you can fight back. Her “Money-Bucket System” helps you to earmark money for short-term and long-term savings while having off what you need to manage essential payments like rent/mortgage, utilities, insurance, property taxes and debt.

Long-term savings should be in an investment account (for things like retirement) while short-term savings (vacations, an emergency account) should be in easier-to-access savings accounts.

This approach will set you up to chip away at debt while saving for the future. It won’t be easy, she warns. “You’re going to be in a fight against debt your whole adult life, whether you’re paying it off or trying to stay out of it… try to spare yourself the mental struggle as much as you can.”

A chapter on housing offers a great overview of owning versus renting. There’s also the idea of saving on housing costs by moving somewhere cheaper. Be careful, Alini advises. While “you’ll be able to buy a bigger home, and life isn’t quite so stupid expensive,” you could also face “of a soul-sucking commute or having to big up on a big-city job and the earnings and career potential that may go with it.”

After an interesting look at work – including whether or not freelance jobs are really worth the time and effort – Alini turns to retirement, which she calls “one of the trickiest parts of personal finance.”

Three trends have emerged that are making it harder for Canadians to afford retirement – “the gradual disappearance of employer pensions, the fact that we increasingly live longer but also take longer to land a decent job, and low interest rates.”

Fifty years ago, full-time employment “often came with the promise that your employer would take care of you in retirement,” usually through a defined benefit (DB) pension. Such pensions “guarantee you a certain level of income in old age – often based on length of service and rank – for every year of retirement until death.” But the percentage of Canadian workers with such plans has dropped from 40 per cent in 1977 to just 25 per cent by 2018, she says.

More common these days are defined contribution plans (like the Saskatchewan Pension Plan) where the payout is based on how well contributions have been invested. Some employers match contributions made by employees. “A plan where you put in five per cent of your monthly compensation and your company pitches in another five per cent is like having 100 per cent guaranteed return, because the employer’s contribution doubles your own. That’s nothing to sneeze at,” Alini writes.

Those of us without a workplace pension plan “will have to save our way to retirement by ourselves… this means figuring out how much to save and where to put the money,” she writes.

If you haven’t started saving for retirement, the time to start is now, Alini writes. “The sooner you start, the easier it’s going to be to reach financial independence. And by easier, I mean exponentially easier.”

The book then provides great information on your savings options – registered retirement savings plans, tax free savings accounts, and the tax implications of investing in non-registered vehicles. The solid section on investing includes a key summary on assessing your appetite for risk.

Alini concludes by stating “I hope this book has helped you understand why it sometimes feels so hard to achieve financial goals that our parents’ generation largely took for granted. And I hope this helps you set aside any shame, guilt, or self-blame. Instead, I want you to embrace the challenge and fight back.”

No workplace pension? No problem. Consider the Saskatchewan Pension Plan. SPP members can contribute $7,000 annually to SPP, and can transfer in up to $10,000 from other retirement savings vehicles. SPP will grow your money at a low fee, with professional investing, over time. When it’s time to get out and retire like you mean it, you’ll have a nice stream of retirement income thanks to SPP.

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Newly-minted retirees finding golden years expensive, thanks to inflation

Writing in the Financial Post, Victoria Wells reports that new retirees – who jumped ship on work due to the pandemic – are finding their golden years more expensive than they expected.

She notes that many folks left their jobs earlier than planned due to COVID-19.

“One-third of Canadians who recently exited the workforce say they moved up their retirement date, according to a poll of people aged 55 to 75 for RBC Insurance,” she reports.

Thirty-four per cent of those responding to the RBC survey said they “left their jobs earlier than planned” due to the pandemic, the article notes. “Another 30 per cent of those who haven’t yet made the leap to retirement says they’re planning a change in date, either sooner or later, thanks to the pandemic,” her report adds.

But, the article notes, there’s a problem – retirement is getting pricey.

“One in four said they’ve ended up spending more than expected, and 41 per cent said they’ve been hit with surprise expenses, including expensive house repairs and rising costs of health care and transportation, or having to provide unexpected financial support for family,” Wells writes.

Meanwhile, she adds, “inflation hit 6.7 per cent in March from the same time last year, the highest gain since January 1991, bringing sticker shock for consumers at the gas pump and grocery store.”

Since then, inflation has continued to climb, reports Wells, and the Bank of Canada hasn’t ruled out further rate hikes to try and combat inflation.

With those newly retired reporting higher costs, will soon-to-be-retired workers try and hold on to their gigs?

“The events of the last two years are clearly affecting Canadians — including those nearing retirement,” states Selene Soo, director of Wealth Insurance and RBC Insurance, in the article. “And with the current high inflation rate added to the mix, many are feeling concerned about their purchasing power and increasing expenses.”

Inflation is a worry for 78 per cent of those surveyed by RBC Canada, the article notes. Statistics from a C.D. Howe Institute study, authored by noted retirement expert Bob Baldwin, show that house prices have doubled in the last 20 years. As well, the study (cited in the Post article) notes, retirement assets (registered retirement savings plans, tax-free savings accounts, and workplace pensions) have jumped to $158,000 on average, more than twice what they were in 1999, there’s still concern out there.

A shocking 25 per cent of those aged 45 to 64 have no retirement assets at all, the article notes. Those without workplace pension arrangements tend to have little to no TFSA or RRSP savings, states Baldwin in the Post article.

“These realities suggest that a minority of the future elderly may have trouble maintaining their standard of living in retirement,” he states in the article.

Wells has done an excellent job of pointing out a very serious issue – the growing lack of workplace pensions.

If you are fortunate enough to have a workplace pension arrangement of any kind, be sure to sign up for it and contribute as much as you can. This is especially true if you haven’t planned (or started) to save much on your own for life after work.

If you’re not sure how to go about saving for retirement, the Saskatchewan Pension Plan may be the option you are looking for. You can contribute up to $7,000 annually to SPP, and can transfer in $10,000 more a year from other retirement savings vehicles. SPP will look after the hard work – investing your money in volatile markets – and when the time comes to give back your security badge and parking pass, SPP will turn those savings into income. Check out SPP today!

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Most of us have an old flip phone lying around, or a Windows 7 laptop gathering dust in the basement, or a collection of our old Palm devices from the early 2000s. All this tech – which no longer has a current use — has long been replaced with new and better stuff.

But is there any value left in all that old, obsolete technology? Save with SPP had a look around to find out.

Old cellphones, reports Yahoo! News, may still hold quite a bit of value.

“The trade-in value will depend on the type of phone, how old it is and its condition, but you may be able to get $100 (U.S.) or so for even a fairly dated iPhone model. An iPhone 8 64G in good condition is typically valued at $105 U.S., according to SellCell.com,” Yahoo! News notes.

Old laptops, the article continues, can be worth “$400 to $800 U.S.,” depending on “the model, the year, and its condition.”

Business Insider offers a few more suggestions. Remember the old Speak and Spell device – a sort of fun way to learn spelling for kids – from the 1970s? These old devices, manufactured by Texas Instruments, “can fetch anywhere between $50 and $100 U.S. on eBay, depending on its condition,” the publication reports.

Can you recall the days when a Sony Walkman was the way to make your music go mobile? These “wearable” little cassette players, first rolled out in 1979, are now worth “between $300 and $700 U.S. on eBay.”

An original iPhone in the box is worth up to $15,000 U.S., the article adds. And if you happen to have a rare Xerox Alto personal computer – one of the first to use a mouse – your 1973 vintage machine is worth $30,000 American, the article adds.

The Komando website reports that factory-sealed original Nintendo games can be worth a small fortune — $75,000 U.S. for an original copy of the Mega Man game, for instance.

An original Apple Macintosh computer will net you $2,000 U.S., and an old Commodore 64 computer will be worth $1,200 in good condition.

Save with SPP took a peek on eBay to see if our old Palm devices were worth anything. Surprisingly, they were listed from $35 to $55 Canadian. Our rare Samsung Windows Phone is similarly available for $25 to $35 in loonies. So, you never can tell.

If you are able to turn any old tech from trash into cash, a great destination for those dollars is a Saskatchewan Pension Plan account. Those old tech devices will serve your future self very well, as SPP will invest the proceeds from their sale, and over time, turn obsolete tech into future retirement income. Check out SPP today!

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End RRIF mandatory withdrawals, RRSP end dates, and create national RRSP: Pape

Well-known financial author Gordon Pape has been observing the Canadian investment and retirement savings system for many decades, and has come up with a four-point plan to make retirement more effective for Canada’s greying population.

Writing in the Globe and Mail, Pape observes that there are now seven million Canadians aged 65 and over.

“This has the makings of a massive demographic crisis,” he writes. “Where are the future workers going to come from? Who is going to support our rapidly aging population? What will happen to the tax base as people leave the work force and reduce their spending?”

He then suggests that one way to address the problem would be to encourage more Canadians to work past age 65, a plan that would “require a massive overhaul of our retirement system,” but that is “doable.”

As a starting point, he notes that the trend towards more working at home, born from our experiences with the pandemic, may be a good “carrot” for encouraging older Canadians to keep working. Working from home is preferable for most, he says.

But other carrots are needed as well, he writes.

Eliminate mandatory RRIF withdrawals: Currently, he writes, registered retirement savings plans (RRSPs) must be “wound up by Dec. 31 of the year in which you turn 71,” and are then mostly converted into registered retirement income funds (RRIFs). With RRIFs, he explains, you are required to withdraw a minimum amount annually, an amount that grows until you are 94 and must withdraw 20 per cent of the RRIF.

“RRIF withdrawals are a huge disincentive to work after age 71. Added to regular income, the extra RRIF money can quickly push you into a high tax bracket,” Pape writes.

“The solution is legislation to end mandatory withdrawals entirely. Let the individual decide when it’s time to tap into retirement savings and how much is needed. The government will still get its tax revenue. It will just be delayed a few years,” he posits.

End RRSP wind up at 71: A second “carrot,” he writes, would be to change the age that RRSPs must be closed, currently age 71. Why, asks Pape?

“RRSP contributions are tax deductible. Making RRSPs open-ended would therefore create an incentive to continue saving in later years, when people may have more disposable income (no mortgage, kids moved out). That would result in more personal savings, which should result in fewer people requiring government support in later years,” he writes.

Create a national RRSP: Pape proposes that a national RRSP – to be run by the Canada Pension Plan Investment Board – be created. “It would provide Canadians with first-rate management expertise, at minimal cost,” Pape writes.

This idea is needed, Pape says, because many people don’t know how to invest in their RRSPs and lack the advice they need to do so.

Allow CPP and OAS to be deferred longer: His final idea would be to allow people to start their Canada Pension Plan and Old Age Security later than the current latest age, 70. Again, this is to accommodate folks who want to work longer and don’t need the money as “early” as 70.

These ideas all make a lot of sense if the goal is to help people working longer. The idea of being able to withdraw RRIF funds as needed rather than based on a government mandatory withdrawal table is sensible. After all, who wants to withdraw money – effectively selling low – when markets are down? And if one is working into one’s 70s, why take away the effective tax reduction lever of RRSP contributions?

Let’s hope policy makers listen to some of Pape’s ideas. Gordon Pape spoke to Save with SPP a while ago, and he knows his stuff. He also spoke with our friend Sheryl Smolkin in an earlier Save with SPP column.

If you don’t have a workplace pension plan, investing on your own for retirement can be quite daunting, especially in times like these where interest rates are rising and markets are falling. Fortunately, there is a way to have your money professionally invested at a low cost by money managers who know their way around topsy-turvy conditions – the Saskatchewan Pension Plan. You’ll get professional investing at a low cost, and over time, your precious retirement nest egg will grow and be converted to an income stream when the bonds of work are cut off for good. Check them out today!

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Most Canadians understand what registered retirement savings plans (RRSPs) are.

What’s perhaps a little less well known is the registered retirement income fund (RRIF), which is where your RRSP funds generally end up once you move from saving for retirement to spending your retirement income.

Save with SPP reached out to James McCreath, a portfolio manager at BMO Wealth’s Calgary office, to get a better understanding of the basics of RRIFs.

We first learned that McCreath has strong connections to Saskatchewan – both his parents are from here, his mom, Grit McCreath, is Chancellor of the University of Saskatchewan, and the family enjoys time at their cottage north of Prince Albert at Waskesiu Lake.

RRIFs are the vehicle used to turn former RRSP savings into retirement income, he explains.

“You have to convert from an RRSP to a RRIF by the end of the year you turn 71, and must start withdrawing from the RRIF by the end of the year you turn 72,” says McCreath. That potential deferral period, he points out, gives you a 24-month window from the point your RRSP is converted to when you take the first dollar out.

While it is possible to convert to a RRIF earlier than age 71, not many people do, McCreath explains. Such a decision, he says, would be based on an individual’s unique circumstances – perhaps they want “certainty for budgeting,” or other reasons. It’s possible, but rare he says.

While there’s no tax on the interest, dividends or growth within a RRIF, the money you take out of it is taxable. McCreath says the tax on RRIF withdrawals is the deferred tax you didn’t pay when you put money into an RRSP in the past.

Asked if there is a correct or best investment strategy for a RRIF, McCreath says that this again depends on “the circumstances of the individual.”

Generally, a RRIF investment strategy should consider the cash flow needs of the individual, and their tolerance for risk, explains McCreath.

Someone who needs the RRIF income for day-to-day expenses might, for instance, be less interested in risky investments, and would focus on fixed income investments, he says. “These days we are starting to see five-year GICs (guaranteed income certificates) that pay four per cent interest; we haven’t seen them at that rate for years, so that might be a consideration” for risk-averse RRIF investors.

Others with less cash flow needs for the RRIF – perhaps those who retired with workplace pensions – might be able to handle a riskier investment strategy. “They might want to hold equities under the hope that their RRIF grows, for legacy purposes,” he explains.

“I strongly advise people to find an investment professional, or an accountant, who can help develop the optimal plan for their own circumstances,” McCreath says.

On the issue of RRIF taxation, McCreath points out that taking money out of the RRIF is different than taking it out of an RRSP.

There is a minimum amount that you must withdraw from your RRIF each year, a percentage that gradually increases as you get older, he explains.

When you take money out of an RRSP, an amount of tax is withheld at source for taxes (beginning at 10% for withdrawals up to $5,000). No such taxes are automatically withheld when you withdraw the minimum prescribed amount of money from a RRIF.

If you are concerned about having to pay taxes at income tax time because of RRIF income, McCreath says you can often arrange to have the RRIF provider deduct a set amount of tax above the mandated minimum tax withholdings from each withdrawal. In this way, you will help avoid having to make a large payment at tax time, assuming the appropriate amount of tax gets withheld, he explains.

Another good idea, he says, is to use any RRIF income (net of tax) that you don’t need as a contribution to your Tax Free Savings Account (TFSA). “If you don’t need the capital for day-to-day living, you can continue to invest it in the TFSA,” he explains.

An alternative to a RRIF at the end of your RRSP eligibility is the purchase of annuity. Annuities, like a pension, provide a set income each month for life, and many annuity providers offer a variety of options for them around survivor benefits.

The current sharp rise in interest rates may increase interest in annuities, McCreath suggests.

“As interest rates rise, the functionality and usefulness of annuities go up,” McCreath notes. Generally speaking, the higher the interest rate at the time of purchase is, the greater the annuity payment will be.

McCreath concluded by offering two key pieces of advice. First, he notes, a lot of retirement decisions, such as moving to a RRIF or buying an annuity, are important and “irrevocable” ones. It’s important to get professional advice to help you make the decision that’s best for you, he says.

As well, he says, pre-retirees should have a very clear understanding of their cash flow, and “the matching of inflows to outflows,” before they begin drawing down their savings.

We thank James McCreath for taking the time to talk with us.

Saskatchewan Pension Plan members have several options when they want to collect their retirement income. They can choose among SPP’s annuity options, SPP’s variable benefit (available for Saskatchewan residents), or transfer their money to a Prescribed RRIF. Check out SPP’s Time to Collect Guide for more details!

Canada’s workforce greys as boomers hit the road to retirement

The Canadian workforce is “older than it has ever been,” reports the CBC, citing information from the latest national census.

“More than one in five working adults is now nearing retirement, says Statistics Canada — a demographic shift that will create significant challenges for the Canadian workforce in the coming decade,” reports the network.

There are more people aged 55 to 64 in the workforce than those aged 15 to 24 entering it, the article notes.

And that’s a big change.

“In 1966, there were 200 people aged 15 to 24 for every 100 Canadians aged 55 to 64, but that has now been flipped on its head. In 2021, there were only 81 people aged 15 to 24 for every 100 Canadians in the 55 to 64 age group,” the CBC report continues.

Boomers, the report explains, began retiring around 2011. The fact that so many of us are boomers – retiring ones at that – is “the single most important driver of Canada’s aging population trend,” the CBC notes.

It’s expected that the number of folks aged 85 and over will triple by 2051, with one quarter of the population being over 65 by that date.

Meanwhile, at the other end of the scale, Canada’s fertility rate hit an “an all-time low of 1.4 children per woman,” the CBC report adds, citing Statistics Canada data. There are six million young people under 15 in the country compared to seven million of us who are 65 and older.

This greying trend raises a number of concerns.

First, the article says, the traditional “transfer of knowledge” from older workers to younger ones won’t be easy to achieve if there is a shortfall of young folks entering the workforce.

Next – a question not posed in the article – we have to wonder if this grey wave of retirees will have sufficient retirement savings. The Canada Pension Plan, for example, uses CPP contributions from working Canadians to help pay the pensions of retirees, so a change in the ratio of working to retired Canadians could have consequences on that program. (The CPP Investment Board has set aside a massive contingency fund to deal with this exact problem, so that’s reassuring.)

Third, a point raised in the CBC video that links to the article, is the cost to society of looking after all those older folks, particularly as they hit their 80s and beyond. We may see a need for more long-term care spaces or a more determined effort to boost homecare – and both things will carry a future cost.

Younger folks may find that better jobs become more widely available, which is a silver lining to the issue.

Retirement can last many decades and carries a hefty price tag. If you have access to a workplace pension plan or retirement program, be sure you are signed up and contributing the most that you can. If you don’t have a workplace program, the saving responsibility is on your shoulders. Joining the Saskatchewan Pension Plan is a great option. Let the experts at SPP navigate the tricky waters of investment; they’ll grow your nest egg and when the day comes that work is an afterthought, SPP can turn your savings into steady retirement income. Check out SPP today!

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“Choosing individual stocks without any idea of what you’re looking for is like running through a dynamite factory with a burning match. You may live, but you’re still an idiot.”

So writes Joel Greenblatt in The Little Book That Still Beats the Market, billed as “one of the best, clearest guides to value investing out there.”

There’s a lot of ground covered in this interesting and well-written (and quite short) book.

The book sets out a way to view the stock market and learn “how to find good companies at bargain prices” to accomplish market-beating returns.

An interesting case history provides the example of fictional business that sells sticks of gum. While it is easy to figure out how much gum gets sold, the profit per stick, and projected income, the tricky part (and key to the book) is figuring out what the overall business is worth.

Owning part of a business, Goldblatt explains, can be accomplished by owning shares in it. “Buying a share in a business means you are purchasing a portion (or percentage interest) of that business. You are then entitled to a portion of that business’s future earnings,” Goldblatt notes.

While businesses may go along without big changes in their value, their stock prices can swing wildly, he explains. There are many theories as to why stock price swings happen, but the takeaway is to realize that a low price on a good company is a buying opportunity.

“If you just stick to buying good companies (ones that have a high return on capital) and to buying those companies only at bargain prices (at prices that give you a high earnings yield) you can end up systematically buying many of the good companies that crazy `Mr. Market’ has decided to give away,” Goldblatt says.

Here’s where he introduces his “magic formula.”

He ranks the 3,500 largest traded U.S. companies on the major exchanges by “return on capital,” with the company with the best return getting number one spot, and the one with the worst, 3,500. He does the same thing with earnings yield. You then add the two numbers together – companies with a low combined rating are considered good performers, and if you can catch them when their price is down, you may have a bargain on your hand.

In a chart, Goldblatt shows that from 1988 to 2004, a portfolio of the top 30 “magic formula” companies had average returns of 30.8 per cent, more than double the market and S&P 500 average.

He points out that the “magic formula” doesn’t always beat the markets in the short term. Investors need to “believe it will work and maintain a long-term investment horizon.”

The book mentions online resources to help you set up your own screening to create a list.

This is an interesting book, and is simple enough for even non-math heads (hand raised here) to grasp, at least in theory.

Do-it-yourself can be satisfying, but leaving the heavy lifting to professionals is also an option for those of us lacking the time or expertise. That’s where the Saskatchewan Pension Plan comes in. They’ll invest your retirement savings professionally, at a low cost, and when it’s time to retire, will help you convert those savings into income. Check out SPP today!

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Volunteering gets top grades from retirees: survey

So you’ve been a saver, taken advantage of any workplace pension program you have, and have arrived at the finish line – retirement!

But without the need for a commute or transit ride to work, seeing the gang there for lunch and coffee, and then noodling through the day on the way back home, what’s a person to do with all the free time?

According to a recent article in the Financial Post, the answer may be to become a volunteer.

In a recent survey of members of the group ROTERO, the Post reports, “62 per cent of… members agreed that volunteering contributes to the enjoyment of retirement life.”

ROTERO, the article explains, “has been a voice for teachers, school and board administrators, educational support staff and college and university faculty in their retirement. The organization promotes healthy, active living in the retirement journey for the broader education community. Its vision is a healthy, active future for every member of the education retiree community in Canada. Volunteerism is a big part of that.”

Some of the other findings the Post reports from the survey of ROTERO’s 81,000 members are:

• 64 per cent of members volunteer regularly, compared to “the Canadian average for this age group, which hovers at around 40 per cent according to Volunteer Canada.”
• Most who volunteer average 20 hours per month.
• Asked why they volunteer, “members cited things like a desire to give back and make a difference (71 per cent), the social interactions related to the volunteer role (66 per cent) and the chance to make new friends and meet people (60 per cent).”
• A total of 72 per cent of those surveyed said they also volunteered before they retired.

“It gives a sense of purpose, an opportunity to meet and interact with others, and to contribute to the well-being of our neighbours however we can,” states one RTOERO member in the article. Or, as another member put it in the Post piece, “It feels good to help.”

Save with SPP has been embedded among the retiree population since leaving full-time work eight years ago and concurs with the views of the Post article. Most of us, while working, were part of a team and an organization that had some sort of purpose or goal that everyone played a part in. It’s not the same once you log out for the last time, but volunteering can provide you a new set of downs in terms of goals, objectives, teamwork and meeting new people.

If you want to volunteer in retirement, you’ll need to be sure you have enough income to afford to quit working! The Saskatchewan Pension Plan offers you a nice way to save for retirement – or to augment any savings you already have. With SPP’s voluntary defined contribution plan, you can contribute up to $7,000 a year towards your future – and you can transfer in up to a further $10,000 a year from other eligible retirement savings vehicles, such as a registered retirement savings plan. You’ll be amazed how your account balance can grow. Check out this made-in-Saskatchewan marvel today!

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