Sept. 16: BEST FROM THE BLOGOSPHERE

September 16, 2024

Canadians struggle to save for retirement; 75 per cent blame cost of living: CARP study

A new study from the Canadian Association of Retired Persons (CARP), carried out by Sun Life, finds that “one third of Canadians struggle to plan for retirement,” and “75 per cent of people say their cost of living is negatively impacting their retirement savings.”

The findings were made public via a recent media release.

And the research had other troubling findings, such as the fact that “over half of respondents are worried they do not have enough money to retire,” the release notes.

“There are many factors to think about for Canadians when it comes to saving for retirement,” states Eric Monteiro, Senior Vice-President, Group Retirement Services, Sun Life, in the media release. “Planning can significantly affect someone’s ability to retire. Considering what you want your retirement to look like, and building a roadmap to get there is essential.”

The release says that those who are “digitally engaged” with their retirement savings “have more money saved, feel more confident about their plan, and experience better retirement outcomes.”

We gather this means people who check their savings progress online. The release states that:

• Members who are digitally engaged see an average balance 230 per cent higher than those who are not engaged ($123,800 versus $51,800).
• Digital members contribute 61 per cent more to their savings accounts than those who aren’t online ($8,700 versus $3,400).
• Digital members are two times as likely to maximize an employer match. While 30 per cent of non-digital members maximized that match in 2023, this compares to 61 per cent of digital members.

“It’s important that people not only prepare for retirement but feel confident in the decisions they’ve made. It’s clear that those who regularly log-in online see the long-term benefits of embracing the convenience of digital tools. These numbers paint a vivid picture about how technology can empower people to take control of their financial future,” Monteiro adds, via the release.

Members of the Saskatchewan Pension Plan have a variety of online tools to map their retirement progress.

By using My SPP, you can quickly check the most recent rates of return on SPP’s Balanced Fund and Diversified Income Fund. You can take a look at your current account balance, download any tax slips or statements, and check your personal account information to make sure you’re up to date.

On the planning side, SPP’s Wealth Calculator gives you a quick idea of just how much income your future self may receive from your invested SPP contributions.

You can even choose to make contributions directly through the website via a credit card.

All these tools will help keep your SPP retirement planning on track – and when it’s time to collect, you can choose among such options as a monthly lifetime annuity payment or the more flexible Variable Benefit.

Get SPP working for you!

Join the Wealthcare Revolution – follow SPP on Facebook!

Canadian Association of Retired Persons

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