We’ve read a ton of books on retirement/saving for retirement/living in retirement, and there’s one common thread that runs through all of them – the need to have a budget (and to stick to it).

Save with SPP decided to search for easy ways to get a budget in place, for those of us who either don’t currently budget or have given up due to fears it will be too complex and difficult.

At the Money Canada blog, writer Sandy Vong advises that if “you consistently look at your bank balance and wonder where the money goes then it’s time to take charge of your funds – and that starts with making a budget.”

“The good news is that it doesn’t have to be scary or time-consuming. But having a budget is critical. A budget gives you a big picture of your spending and saving habits and it’s a great way to take charge of your finances,” writes Vong.

Vong’s budget plan involves five steps – understanding and rating your values, setting your financial goals, tracking income and expenses, creating a budget and then regularly reviewing it.

The “value” idea is a bit unique.

“Values are those intangible measures of a good life. For instance, good health may be a value, as it a fulfilling career, or a place to call home. By starting with your values, you’re able to understand what value you are helping to support when you spend or save your money,” Vong explains.

The budgeting part itself, Vong notes, is fairly simple – track every expense and all of your income.

“Tracking your income and expenses is a simple exercise that takes a few minutes every day, but will quickly show you what your lifestyle is like and what areas you are spending the most on,” Vong notes.

“You can keep track of your income and expenses by using a note-taking app like Evernote.

However, there are more sophisticated budgeting apps such as YNAB (You Need A Budget). Whenever you go to purchase an item, whether online or in-store, record the date, the name of the store and the amount you spent. This way, you will have a full summary of where your money comes in and where it goes out at the end of the month,” Vong concludes.

There are other budgeting strategies.

Writing for GoBankingRates, Caitlin Moorhead explains the 75/15/10 budgeting approach.

“The 75/15/10 rule is a simple way to budget and allocate your paycheck. This is when you divert 75 per cent of your income to needs such as everyday expenses, 15 per cent to long-term investing and 10 per cent for short-term savings. It’s all about creating a balanced and practical plan for your money,” she writes.

She sees the 15 per cent as going for your future.  “By putting 15 per cent of your income into investments like stocks or real estate, you’re not just saving — you’re growing your wealth,” she explains. The 10 per cent should be used to build up an emergency fund that can cover up to six months of expenses, she concludes.

Another, somewhat similar approach is the “50/30/20 method,” reports Linda Howard of The Daily Record.

In this approach, she explains, 50 per cent of your money is earmarked for “essential spending such as bills and food shopping,” with 30 per cent going to fun “non-essentials, such as eating out and style and beauty,” and the last 20 per cent going into savings.

The great Gail Vaz-Oxlade has long proposed a “cash jar/envelope” budgeting system, covered via the Smart Canucks blog.

According to the blog, Vaz-Oxlade’s approach “recommends that of your total income, 35 per cent goes to housing, 15 per cent to transportation, 25 per cent on `life’ (everything from groceries, pets, kids etc.), 15 per cent to debt and 10 per cent to savings.”

As we all remember from her many TV shows, she encouraged people to actually set aside cash for each category in jars or envelopes. If there’s no money left in the jar, you need to wait until the next month.

You can figure out your own budget approach, but the chief idea is to spend less than what you earn. To do that you need to see what you are making and know what your bills add up to.

If you are developing a budget, be sure to put some money away for long-term savings, such as retirement. If you don’t have a retirement program at your workplace, consider the Saskatchewan Pension Plan as your savings partner. Open to any Canadian with registered retirement savings plan room SPP is like an RRSP that has, when you retire, built in options to turn savings into income. You can, for example, convert your account balance into a monthly lifetime annuity payment. Or you can select the more flexible Variable Benefit.

Check out SPP today!

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Avoid these retirement savings mistakes

A long time ago – when we were old enough to know better – this writer decided it would be a good idea to dip into our registered retirement savings plan (RRSP) to snag a little cash to buy a brand-new desktop PC.

There was a withholding tax added on to the withdrawal, which was bad, and then the amount withdrawn added to our taxable income, which was like a double hit. Ouch. Lesson learned.

A recent article from Business Insider rhymes off a number of other regrets that a group of Americans aged 48 to 90 have about their retirement savings plans.

“Some wish they’d hired a financial advisor, while others regretted expensive purchases. Others said they took Social Security too early or retired without a long-term financial plan,” the article notes.

Gary Hayes of California tells Business Insider that one of his main regrets is “not saving at least 10 per cent of his income each month.” He admitted to being “too liberal” with spending throughout his life and having invested in short-term ideas rather than longer-term investments.

“You can’t expect that you’re all of a sudden going to win the lottery,” Hayes, who receives $1,846 a month in Social Security and lives in government-subsidized housing, tells Business Insider. “You can’t expect that someone’s going to pass and leave you an inheritance that will make your life more comfortable.”

Cleveland’s Nancy Seeger tells Business Insider “she wished she could have saved more when her children were young,” since she didn’t really start saving for retirement until her 50s.

PJ White, 69, regrets not putting money into a registered retirement savings vehicle. Looking back, the homeless senior realizes she spent too much “on leisure and clothes – play money — and did not set aside time to learn about investing.”

She and her partner lost their home due to tax arrears; they live in a tent and are fighting to get their house back.

“The money would come in and out it would go,” White said, adding she rarely put money into her 401(k), which is similar to an RRSP. “I didn’t think about the retirement aspect because it was so far down the road, but here I am now wishing that I had.”

The article concludes by saying that any retirement savings will help you later in life.

“Bank of America’s Financial Wellness Tracker suggests that Americans ages 61 to 64 should have about 8.5 times their current salary in savings. Someone with $1 million in savings at 65 can safely withdraw $40,000 in their first year of retirement,” the article states.

“For some, saving just one per cent more could have significant financial rewards down the line. If someone making $50,000 annually contributes five per cent of their salary to retirement, they would save nearly $60,000 less after 30 years than if they’d contributed six per cent,” the article concludes.

If you haven’t had time to get going on your retirement savings, and/or don’t know much about investing, a solution is at hand. The Saskatchewan Pension Plan is an open, voluntary defined contribution pension plan that any Canadian with RRSP room can join.

You decide how much to contribute – you can make contributions automatic by signing up for pre-authorized withdrawals from your bank account – and SPP does all the rest, investing your savings in a professionally managed, low-cost pooled fund with an enviable track record. When it’s time to retire, you can choose from options like a lifetime monthly annuity payment or the more flexible Variable Benefit.

Get SPP working for you!

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Our folks might have been more successful about teaching us kids about money had they had a copy of The Wisest Investment by Robin Taub.

She begins by noting that “to have money you have to earn it. Then… there are just four things to do with it – save, spend, share, invest.”

The book has chapters (along with worksheets and handy charts) aimed at kids aged five to eight, nine to 12, 13 to 17 and young adults aged 18 to 21.

Early on, Taub talks about “the 11 healthy habits of financial management.”

The include the idea that you need to “know where you stand financially,” or figuring out one’s net worth; that you need to “live within your means” and “save, or pay yourself first;” that you need to understand “the difference between good debt and bad debt,” to “set up a financial safety net,” and “know the difference between needs and wants.”

As well, the list of 11 includes the need to “teach delayed gratification and set financial goals,” to “track your spending,” to “save now for your children’s education” and for parents to “present a united money front” to the kids. Lastly, be sure to “prepare a will and powers of attorney” to, in effect, set a good course to be followed for after you are gone.

She advises that when talking to very young kids about money, start with cash.

“If you’re comfortable letting your kids handle money (after sanitizing, perhaps) they can start to develop an understanding of Canadian currency…. You can show them the different coins and bills and talk to them about what they’re worth. You can point out the different images on the `heads’ and `tails’ sides of the coins and discuss how each of them is a very special and important image of Canada: the beaver, the moose, the loon and the polar bear, to name a few,” she writes.

She discusses the sometimes-controversial topic of giving kids an allowance.

“Some parents firmly believe that their kids need to `earn’ their allowance, perhaps by doing household chores or by getting good grades,” she writes. “Others believe just as strongly that their kids should help out around the house without getting paid because it’s their responsibility as a member of the family to contribute.” For this group, she continues, paying the kid “sends the wrong message, i.e., that they should expect compensation for everything they do.” Two schools of thought, she concludes, but “there is no right or wrong answer. As always, you have to do what works for your child and your family.”

And, she adds later, “once your child receives his allowance, try to resist the urge to get overly involved in what he does with it. Explain that he should allocate his allowance to the different categories of save, spend, share and invest…. Allow him to make his own spending choices and to live with the consequences of his own decisions,” she notes. You can go over his budget and see if he is staying within it, however, Taub writes.

Later on, when your child is a teenager, you will have reached “a crucial time for your teen to develop sound money management skills” and you, as the parents, “must lead by example” as “financial role models.”

“It can be difficult to communicate with your teenager about anything at this age, but when it comes to money, try not to make it a taboo subject in your home,” she writes.

When your teen finally gets a “real” job, you need to make sure they understand “gross and net pay… explain that employers are required by law to make certain deductions or `withholdings’ from gross pay… and send these amounts straight to the government.”

Income tax, employment insurance and Canada Pension Plan-related deductions/contributions can make the kid’s “take-home pay…. quite a bit lower than they were expecting.”

Budgeting is important once the child has moved from allowance to earned income. Taub recommends develop a budget that takes into account fixed expenses (cell phone, transportation and clothing) that are “needs versus wants,” but to leave room in the budget for entertainment. “Have your kid save receipts so they can keep track of what they spend and you can review the details,” Taub advises.

It’s not too early when they are in their late teens or early 20s to get your kids going on retirement savings, Taub notes.

“If your kid’s income doesn’t all have to go toward college or university expenses, starting a registered retirement savings plan (RRSP) can be a good idea,” she says. Explain to the kid how RRSPs work – “the funds inside an RRSP are invested, and the investment income earned inside an RRSP isn’t subject to tax. This means the investments can grow more quickly to help (the kid) reach (their) long-term goals.”

On credit cards, “the best way to teach your kids to use credit cards responsibly is to model this behaviour yourself. Let them know that you pay off your credit card balance each month. Explain to them that the credit card is used for convenience, but that it’s a very expensive way to buy things you can’t afford.”

This great book is loaded with worksheets, charts, and illustrative anecdotes to make teaching your kids an enjoyable experience! It’s highly recommended.

Somewhere in our basement is an old pay slip from our days selling curtain rods at an Ottawa hardware store in the mid-1970s. The CPP contribution shown on the slip – we made a robust $3.20 per hour then – was a single dollar. We told our teenaged granddaughter that even tiny amounts contributed in the past have added up to a more consequential CPP payment that we get each month today!

Anyone with available RRSP room can be a member of the Saskatchewan Pension Plan. Find out how SPP has been helping Canadians save for retirement for over 35 years. SPP does all the hard work for you – investing your retirement savings in a professionally managed, low-cost pooled fund. When you retire, your options for turning savings into income include having a monthly lifetime annuity payment or the more flexible Variable Benefit option.

Check out SPP today!

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Nearly one third of Canadians have no retirement savings

A fact-filled article by Nicole Blair for the Made in CA blog reveals some statistics – some positive, others a bit grim – about the retirement savings and income habits of Canadians.

She starts by posing this classic question – “have I saved enough money to retire comfortably?”

It’s a hard one to answer, but let’s dive into this well-researched piece.

Last year, she writes, 6.2 million Canadians received Canada Pension Plan payments. The average amount received, including Old Age Security, was $15,159, she continues.

She then looks at the main retirement savings vehicle in this country, the registered retirement savings plan (RRSP).

“Canadians,” she writes, “should save between $700,000 and $1 million for their retirement.” She later adds that you should save enough to replace 80 per cent of your “current spending… to maintain your current lifestyle once retired.”

To that end, 69 per cent of us have opened RRSP accounts. As well, she notes, “in 2019 there were over 6.4 million registered pension plans.. in Canada.”

However, not everyone has an RRSP or belongs to a workplace pension plan, and not all of us have savings, Blair notes.

“Almost a third of Canadians have not saved or thought about retirement,” she writes. “People living alone find saving for retirement harder than the average,” she continues. A total of “62 per cent of Canadians under 35 are saving for their retirement, but only one-fifth think they are on the right path to meet their goals,” she adds.

A slim “12 per cent of Generation X Canadians feel confident they will achieve their retirement saving goals,” Blair explains.

While the average amount Canadians have saved in an RRSP is an encouraging $111,922, Blair says, that figure falls short of the required amount.

“The opinion on how much you should save for your retirement varies. The average amount is around $700,000. However, some financial advisors would say $1 million is needed to retire comfortably in Canada. Of course, the amount you will need depends on where in Canada you plan to retire,” she notes.

“When calculating how much you will need, you need to consider all fixed costs as well as other expenses. Fifty-nine per cent of Canadians cannot estimate how much they would need to retire comfortably, while 50 per cent hope they will have cleared all their household debt by the time they retire,” she continues.

“A way to calculate how much you need is to take 70 per cent of your salary and multiply it by 25. The 25 represents living for 25 years after retirement. Using this formula, a person on a $60,000 yearly salary will need to save $1.05 million (70 per cent of $60,000 is $42,000, multiplied by 25 equals $1.05 million).”

This is a revealing article. The clear message that comes through is that without income from either a workplace pension plan or your personal savings, you’ll be living on a rather spartan $15,159 per year.

If you are eligible to join any kind of retirement program at your workplace, be sure to sign up and contribute at the maximum rates. If your organization doesn’t offer a pension program, consider using the Saskatchewan Pension Plan as your company’s program. SPP is open to individual members, but also organizations. Find out how SPP can help you build a strong retirement future!

Check out SPP today!

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A new year – 2025 – is upon us. Traditionally, it’s a time for making resolutions – maybe to hit the gym more often, to finally quit smoking, and so on.

Save with SPP, often with money on the mind, took a look around to see what sort of resolutions people are considering making when it comes to saving money.

The folks at the GoBankingRates blog have a few ideas; the first is to bump up your retirement savings by one per cent.

“One simple way to improve your long-term finances with minimal effort is to bump up your retirement plan contributions in small increments,” the blog explains. Let’s say you are earning $50,000 and contributing five per cent towards a retirement savings account. In Canada, that could be a registered retirement savings plan (RRSP), Tax Free Savings Account (TFSA), a Saskatchewan Pension Plan (SPP account) or any other savings vehicle where you control how much goes in.

Bumping that up by just one per cent means “you’ll be kicking in an extra $41.67 per month,” the blog explains. “That’s a money-saving resolution you could easily keep,” the blog continues.

Other ideas in this article include starting an emergency fund and the golden rule of “eat all the food in your house” to avoid food waste.

“Having an emergency fund is essential for keeping yourself out of debt when you face unexpected expenses,” the blog advises. Start small – maybe put away $100 a month. “Within a year, you’ll have $1,200…. enough to cover most short-term emergencies you’ll face.”

“If you want to save money… simply check your refrigerator every day for what you have and what might be going bad soon and eat that instead of picking up something new from the grocery store or a restaurant,” the blog advises. This “eat all the food in your house” rule is one our mother used to swear by; we would “use up” the food in the fridge before going out to buy more groceries, avoiding waste.

The Positively Frugal blog over in the UK offers up a few more ideas.

Getting out of debt is the blog’s number one resolution.

“Without a doubt, one of the absolute best financial goals to make this year is to get rid of your debt once and for all! I am a huge proponent of being debt free — not only is it good for your finances, but it’s good for your psyche,” the blog tells us.

“This year, challenge yourself to lose the burden of some of your debt. If you want to take it up a notch and brave the task of setting one of the best long-term financial goals, set a resolution to become completely debt free,” the blog advises.

Other suggestions – in the New Year, start paying off your credit cards in full each month (if you haven’t already begun doing this). “The amount you will save in interest and fees can add up to a nice little pile of cash, which can be used to kick start a savings account,” the blog suggests.

Another money-saving resolution offered up by the blog is to try and eat out less.

“If there is one area where most people can shape up their finances, it’s on the amount they spend eating out,” the blog notes. “You don’t have to completely eliminate eating out, but you can make a money resolution this year to spend less on the meals you eat at restaurants,” the blog adds.

Finally, the gang at Nerdwallet provide us with a few retirement-related savings resolutions.

First, the blog recommends, you should set a “goal retirement age.”

Figuring out when you want to retire will help you to estimate how much money you’ll need to have saved up by the time that day rolls around,” the blog tells us.

“Let’s say you’re 30 years old now and you want to retire by age 65. That gives you 35 years in which to save. So how much money will you need to retire at age 65,” the blog continues.

“A common rule of thumb is to aim to save at least 70 per cent of your annual pre-retirement income. Then, multiply this number by 25. Why? Because another rule of thumb says it’s a good idea to plan for 25 years of life after retirement — perhaps more if you retire early. Finally, you’ll want to subtract any pension income you plan to receive,” the blog states.

The blog also suggests that you automate your retirement savings.

“Once your (retirement saving) plan’s in place and accounts picked out, your next step should be to automate contributions. This ‘set it and forget it’ way to save ensures you’re constantly putting money towards your retirement plan with no little effort required on your part. It’s perfect for those who might be forgetful or be tempted to spend extra funds if they’re not allocated immediately,” the blog advises.

“Automating contributions to your retirement accounts should be easy, with financial institutions allowing you to set it up online. You can choose how much you want to contribute and at what frequency,” the blog adds.

Final word from Nerdwallet is to get started – today!

“It’s never too early to start thinking about retirement. The sooner you start, the more time you’ll have to save, and maximize those savings through registered plans, investments and tax-free accounts,” the blog concludes.

One savings tip we will add is one learned from one of the books reviewed for writing this blog. Let’s say you look at your existing budget, and find there is no room to save anything. The book suggested taking one per cent of your take-home pay off the top and putting it into savings, then managing the bills. Once you’ve managed that for a while, bump it up to two per cent, and so on. This one worked for us back when we were still grappling with a mortgage and debt.

The Saskatchewan Pension Plan is a defined contribution pension plan open to any Canadian with available RRSP room. Like an RRSP, your contributions to SPP are tax-deductible. SPP takes your savings and invests them in a low-cost, professionally managed pooled fund. At retirement, SPP members can choose among such options as a monthly lifetime annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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Emptying the nest egg – the challenge of finally spending your retirement savings

Our late father was in his early 80s when a financial adviser asked him if he was still saving up for a rainy day. “Yes,” said Dad. “Well,” the adviser said, “it’s raining.”

Many people, like Dad, are reluctant to finally start spending their hard-saved retirement nest egg dollars, reports Ritika Dubey of The Canadian Press.

“It can be a jarring switch from saving for retirement to spending in retirement,” she writes. “Financial experts say that transition is a process.”

Her article quotes Kurt Rosentreter of Manulife Wealth as saying we all need to “psychologically prepare” for retirement and need to start thinking about our retirement spending needs “at least two years before bowing out of the job.”

“It’s not just stop one day and all of a sudden, start living off your savings,” he tells The Canadian Press.

Anyone closing in on retirement needs to know things like your post-retirement “cost of living, tax impacts, and how to live off passive investment income or rental property income for the rest of (their) retired life,” writes Dubey.

And unlike the days of getting handed a paycheque every couple of weeks, retirement income is often a byproduct of investment, the article continues.

“All of a sudden, your food money and everything else — your fund money — is now tied to the stock market, bond market, politics, economics, tax rates,” Rosentreter states in the article. “That’s pretty intimidating.”

For Rosentreter, the answer is developing a written plan ahead of retirement, one that states, “here’s how much you have, here’s how you will access it over the next month, next year, 10 years, the rest of your life,” he tells The Canadian Press.

The plan should look at four key areas, he states in the article – fixed core costs (shelter, utilities), fixed variable costs (birthday gifts, etc.), discretionary expenses (i.e., dining out) and luxury costs (that expensive SUV).

“You start with the mathematics of what their cost of living is,” he tells The Canadian Press. “You can’t head into retirement without the numbers.”

Marlene Buxton of Buxton Financial tells The Canadian Press that you will also have to deal with income from multiple sources – many different pots of income.

You might, she notes in the article, have money in locked-in retirement accounts, registered retirement income funds, a defined benefit pension or tax-free savings.

She says it is not day-to-day spending that depletes your savings – “it’s the larger decisions, such as how long before downsizing or when to begin certain benefits such as the Canada Pension Plan or Old Age Security, or what age to retire,” she states in the article.

The article concludes by saying you need to revisit your cash flow plans every year after you retire and adjust them as required. “In the end, it’s putting all this on a spreadsheet and working with it and moving the numbers back and forth to see where it works based on what starts the conversation,” Rosentreter tells The Canadian Press.

With the Saskatchewan Pension Plan, it’s easy to automate your retirement savings. SPP allows you to make contributions via pre-authorized withdrawals from your bank account.

You can line up the withdrawals with your pay days so that you are saving the money before you even realize it’s there. Alternatively, you can contribute to SPP by setting it up as a “bill” in your bank’s online bill payment section. You can send us a cheque, or you can make a contribution with your credit card! It’s all part of the flexibility of being an SPP member.

Check out SPP today!

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“The man from the bank was very nice,” said Grandma over the phone one Monday evening. “He said he just wanted to run a security check, so I ran and got my card.”

Oh no, we thought. We were quickly able to contact the bank to verify that all was OK with her account. She hadn’t been able to see all the numbers (she’s 92) and began to think something was up when the “bank man” started yelling at her.

When we got her on the phone with her actual bank, they reassured her that the bank would never make a “security check” call like that; it was a scam.

Save with SPP took a look around to see what other scams are out there that we – particularly the older and more vulnerable among us – should watch out for.

According to the Toronto.com website, “Canadians have lost a staggering $447 million through various scams and fraud through the first nine months of 2024.”

Of that total, the article continues, $228 million was lost in “investment fraud alone from January to September of 2024.”

An investment scam, the article notes, occurs when “the scammer may try to get you to buy digital currencies, stocks, bonds, or real estate, or to invest in a business directly,” the Competition Bureau Canada states in the article.

“Fraudsters often use social media, dating apps, online ads or websites telling investors to act now while promising high returns,” the article adds.

The Globe and Mail notes that $45 million has been lost “to phone-initiated fraud” like Grandma experienced. That figure “captures only a fraction of the suspected financial carnage,” the Globe notes. “The Canadian Anti-Fraud Centre estimates that a mere five to 10 per cent of victims actually report” the fraud.

In addition to investment scams and phone fraud, the Asterisk blog warns about “social media scams” which often consist of “false advertisements… that promise job opportunities, discounted merchandise, or free trials.” Clicking on these could lead to “identity theft and stolen passwords,” the blog warns.

Another category is called “spear fishing,” Asterisk reports. “Be aware of texts and email messages, which appear to be from a legitimate source, that say someone is trying to access your account. Never respond to the text or email, and do not click on any links.”

These messages may purport to be from someone you do business with – the bank, the post office, Amazon, or the government.

“The golden rule is that if you’re unsure, don’t click. Opening a fraudulent link can potentially infect your device or compromise your data. Instead, reach out to the government agency directly by looking up their official contact information,” the blog advises. “If you’re concerned about these messages, especially if they are ongoing, call your financial institution directly to find out if they’re trying to get in touch with you.”

Another category is employment scams, Asterisk continues.

For example, the blog reports, “Instagram direct messages that claim someone received your resume through a job posting site and is interested in hiring you. It is common for scammers to ask for personal details, financial information and even pretend to send you an advance ‘digital payment.’ However, after you deposit the money, you’ll get a call from your financial institution that the cheque was counterfeit,” the blog warns.

Similar scams involve “car wrapping,” being hired as a “financial agent” to help process invoices or offers for you to be a mystery shopper or personal assistant, the blog cautions.

We’ve all heard (and friends have experienced) the “grandparent scam,” where someone calls saying it is your grandson and that he needs bail money quick to get out of jail. Or the Canada Revenue Scam where a recorded voice says you are about to be arrested for tax evasion unless you contact a random number first. Artificial Intelligence can make any scam sound plausible.

The takeaway is to be skeptical about the reality of any unsolicited call. It costs you nothing to hang up – it might cost you plenty to stay on the line. As our parents used to say, “if it sounds too good to be true, it probably isn’t true.”

Are you among the millions of Canadians who does not have a retirement program through work? There’s a handy resource you should be aware of – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution plan that any Canadian with available registered retirement savings plan room can join.

Sign up and start contributing, and SPP will do all the rest, investing your savings in a professionally managed, low fee pooled fund. At retirement, you’ll have options, including the possibility of a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Working past 65? Check to see if you’ll still have benefits

More and more Canadians – either because they need the money or love their work – are continuing to be on the job beyond age 65.

But, reports Money Canada’s Vawn Himmelsbach, “if you stay with your employer after age 65, your benefits could expire at a time you need them most.”

Mandatory retirement at 65 stopped being the law in 2009, she writes. Today, Statistics Canada figures show that “one in five seniors (21 per cent) aged 65 to 74 worked in 2022,” she continues, noting that while “some seniors enjoy their work or the sense of purpose it brings them… many others are working because they have to.”

Those in the “have to work” category are doing so for “financial security reasons, such as affording everyday expenses, paying off mortgage debt, or supporting adult children,” Himmelsbach notes.

But even though there is no longer a mandatory retirement age, your workplace benefits may be impacted by the candles you see lit on your 65^th birthday cake.

“Many group insurance policies terminate at age 65, which typically impacts disability and life insurance benefits,” she explains. She quotes Rajiv Haté, a senior lawyer at Kotak Personal Injury Law, as recently telling BNN Bloomberg that health and dental benefit coverage may also end at that point.

“Say, for example, you’re 66 years of age and have been working at the same company for 20 years, with full benefits. You’re injured on the job and make a claim, only to find out your insurance expired when you turned 65 and the insurer denies your claim. Since you don’t have coverage, there’s not much you (or even a lawyer) can do about it,” she explains.

It’s important to check with your employer about your benefits coverage, she stresses.

“Whether your health and dental benefits expire will depend on your employer’s policy. Some policies will continue past age 65, so long as you’re paying your premiums. Others will end at age 65, though there may be an option to convert it to private coverage,” she writes.

If you are able to convert your workplace benefits into a private policy, you might be able to do so without the need for a medical exam, the article notes. Getting your own private coverage is also a possibility (if you find yourself without coverage), but a medical test may be required and that could impact the price of premiums – or worse, you could be denied coverage.

Those without coverage should put aside money in savings to cover medical expenses, the article concludes.

As one who has retired from full-time work for a little over 10 years, it is for sure a great thing if you can continue to take part in your workplace program. The cost of prescription drugs, dental care, and new glasses – like everything else – keeps going up, and once you are retired, you will be living on less income (barring a lottery win) than you had while working.

Saving for retirement on your own can be daunting, particularly if you aren’t up on stocks, bonds, real estate, infrastructure, or other categories of investment. But there’s a solution – the Saskatchewan Pension Plan. SPP does the heavy lifting of investing your savings for you. And, once it is time to turn in your name badge, SPP provides ways for you to turn those savings into income, such as via a lifetime monthly annuity payment, or our more flexible Variable Benefit.

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Decades ago, a colleague – during a chat about retirement – told us that her in-laws felt that the best retirement decision they ever made was to leave work as soon as they could, at age 55.

They had enjoyed a very long retirement and did all the things they wanted to – and they looked back at it all fondly now that they were in their 80s.

Save with SPP decided to look around to see what other people think are the best, or most important, retirement decisions they can make.

The Motley Fool blog offers up a few key decisions.

One is to “make retirement a priority,” because “the sooner you decide to make retirement a priority, the more time `the force’ (the power of compounding) will work in your favour,” the blog tells us.

Another decision is to “explore your core pursuits,” the blog advises. “The happiest retirees report entering retirement with an average of 3.61 `core pursuits.’ Unhappy retirees have less than two,” the blog notes.

A related idea is to set retirement goals, the blog states.

“Something as simple as writing down three goals for your first year in retirement can work wonders in giving your time structure, purpose, and meaning. Of course, these goals will change over time — the important thing is devoting time to exploring them and following through,” the blog concludes.

The folks at Forbes offer up a few more.

Your health, the publication suggests, should be a top consideration.

“`Good health’ is the factor often cited by retirees as a top reason for happiness in retirement,” the publication notes. “As you’re considering the `when to retire’ question, you’ll want to find a way to balance your health goals with your financial goals, since money worries can be a significant cause of stress, which can in turn negatively affect your health. This can be another reason to consider working part time for a while—you’ll get more time to achieve your health goals while also improving your finances.”

The publication also suggests that delaying your retirement date may qualify you for larger retirement benefits.

Finally, the Kiplinger team brings up some important decisions on retirement you don’t want to get wrong.

Don’t “relocate on a whim,” the article advises. “Too many folks have trudged off willy-nilly to what they thought was a dream destination only to find that it’s more akin to a nightmare,” the article adds. Consider renting in your new, desired location before you decide to buy there, the article adds.

Don’t “not plan” to retire. Huh? Kiplinger says that 55 per cent of U.S. workers plan to work “after they retire,” meaning, essentially, continuing to work indefinitely. “That plan could backfire,” warns Kiplinger.

Changes in your health, or that of a spouse, could mean you’ll be retired before you planned to be. “Assume the worst and save early and often. Only 34 per cent of baby boomers surveyed by Transamerica have a backup plan to replace retirement income if unable to continue working,” the article adds.

Finally, Kiplinger cites “putting off saving for retirement” as a related, bad decision. Surveys found this was the biggest regret amongst U.S. boomers.

“The good news for investors (in their 40s and 50s) is that they may still have enough time to change their savings behavior and achieve their goals, but they will need to take action quickly and be extremely disciplined about their savings,” states Ajay Kaisth of KAI Advisors in New Jersey in the Kiplinger article.

If there is a single takeaway from all this, it’s the idea of planning. You will almost certainly reach a point in life when you are no longer working or able to work. If you thought about this long ago and saved, or joined a retirement program at work, you will have more options than if you didn’t.

If you don’t have a workplace pension plan or retirement program, the Saskatchewan Pension Plan may be just the ticket for you. SPP is open to any Canadian with available RRSP room. You make tax-deductible contributions to SPP at any rate you wish – and you can transfer funds into SPP from other RRSPs. Once your savings are entrusted to SPP, we will invest them in a low-cost, professionally managed pooled fund. At retirement, your choices include income for life via an SPP annuity, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!