We frequently write, in this space, about good ideas to help boost your long-term retirement savings.

But what about the opposite – bad retirement decisions that can hurt or hinder your efforts? Using the theory that we often learn the most from making mistakes, Save with SPP scoured the Interweb to drum up some bad retirement ideas to avoid.

Let’s start with the Money.ca website, where Michelle Robertson discusses a half-dozen common retirement planning mistakes Canadians too frequently make.

The first, she explains, is “not having a plan.”

“Driving to retirement with no plan is like a trip to a mystery location with no map. You have no idea where you will end up,” she warns. “A plan shows if you’re investing enough to be ready at your desired retirement age. The more time and clarity you have, the easier it is to reach your goals,” she continues.

And for those who think their house will provide the retirement income they need, she suggests that “you can’t eat your house in retirement.”

“People see their house as an investment. They expect to use its equity in retirement. But, you can’t access your home’s equity if you live in it without borrowing your equity from the bank (for the second time),” she writes.

A third, classic mistake Robertson warns us about is to “take too much debt into retirement.”

“Debt is debilitating at any stage of life, but especially in retirement. It will quickly erode your retirement income,” she explains.

In an article published by GoBankingRates, Yaël Bizouati-Kennedy provides a few more bad ideas to watch out for.

First mistake, the article notes, is “starting your savings journey late.” The article quotes money and financial coach Adeola Monofi as saying “by starting early, you can leverage the power of compounding interest and allow your investments to grow significantly over time. Make it a priority to start saving for retirement as soon as possible, even if it means making small contributions initially.”

Another red flag is underestimating retirement expenses, the article continues. Healthcare costs can rise when you’re older, the article notes, as can the cost of housing, travel, hobbies and other leisure activities.

A third mistake is thinking that Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will be enough to fund your retirement, the article notes.

“While programs like the CPP and OAS provide valuable income, they may not cover all your retirement needs,” Monofi is quoted as stating in the article. She tells GoBankingRates that these government benefits should be augmented by personal savings in “registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), real estate, permanent life insurance and other investment vehicles suitable for your circumstances.”

Last word goes to Canadian Essence, who list, in an article by Ash Kaushik, some of the worst advice people can be given about retirement.

“Invest in only safe options, like bonds,” is one such piece of advice, the article reports.

“Bonds are risk-free, but if you’re obsessed with them – it’s counterproductive. Retiree funds have to keep up with inflation and a well-diversified portfolio comprising stocks can deliver higher long-term returns. Don’t play it too safe and you’ll fall short on your financial expectations,” the article warns.

Another bad bit of advice, the article continues, is that idea that if you haven’t saved enough, “you can always work longer if you’re not ready.”

“You shouldn’t rely on working longer to save money. Unexpected illness, unemployment or a caregiver need can lead to you retiring before you have any choice,” the article cautions.

“Retirement will be just like your vacation,” is our final bit of bad advice presented in the article.

“Retirement sounds simple enough, like a one-week vacation but it’s often not. Even all the free time feels a little unenjoyable if you don’t plan how to remain active, productive and be on track. So, don’t be surprised if you’re expecting a vacation-like lifestyle, but haven’t considered how you’ll spend your time or how you’ll cope with changes in your daily routine,” the article tells us.

Having left full-time work more than 10 years ago, this writer can attest to the truth of the “retirement is like a vacation” comment. It’s more like it is always the weekend, which is still good but a little different than being on a trip.

If you haven’t got going on your retirement savings yet, and don’t belong to any sort of retirement savings plan through your work, there’s an option out there for you that is worth considering – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution pension plan that any Canadian can join.

You decide how much you want to save, and SPP does the rest, investing your savings dollars in a low-cost, professionally managed pooled fund. At retirement, among your options are a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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Living costs, debt are main barriers to saving: IG research

A recent study by Winnipeg’s IG Wealth Management took a hard look at what’s preventing Canadians from saving for retirement – and the high cost of living, and personal debt, are near the top of the list.

A recent article on Advisor.ca, authored by Jonathan Got, took a look at the survey’s key findings.

An overwhelming 80 per cent of the 1,500 Canadians surveyed cited “the rising cost of living” as their chief barrier to saving for retirement, the article notes. A significant percentage of the sample – 38 per cent – said they “put off saving for that goal (retirement) to repay debt.”

Only 18 per cent of those surveyed took the position that living in the now is more important than saving for retirement – they said they “preferred to enjoy their current lives,” the article tells us.

Forty-six per cent of the sample felt that their priorities should be on current living costs. They said, “they prioritize spending on their current needs and wants, despite many wishing to save for retirement to travel or take on other hobbies,” the article adds.

“Rising costs and mounting debt repayment challenges often undermine Canadians’ ability to save for retirement,” states Christine Van Cauwenberghe, head of financial planning at IG Wealth Management, in the article.

The article goes on to note that those surveyed spent “roughly 67 per cent of their income on basic living expenses, 20 per cent on leisure activities and 12 per cent on retirement.”

Other findings cited in the article:

• One-third of respondents planned to keep working in retirement “to afford basic living expenses, supplement income, or maintain social connections.”
• Thirty-eight per cent of respondents want to travel in retirement; “one third would focus on hobbies and 17 per cent saw themselves working part-time or consulting.”

The figure that jumps off the page from this research is that people are spending 67 per cent of their income on basic living expenses.

The Statista Consumer Insights survey reveals another concern – that people are having to dip into their savings to pay for current living costs.

Fifty-nine per cent of Canadians say their cost of living has increased “notably,” the study notes, with 26 per cent of Canadians saying they had to dip into their savings to make ends meet.

Only Australians (at 29 per cent) were dipping into their savings more than Canadians.

What does all of this suggest? Obviously, saving for retirement is a difficult thing to do, particularly when you have no control over increases in the cost of housing, food, fuel, and overall living. You may have to start small, or reduce the amount you’re saving, but it’s important to keep that nest egg building, to help you in a future where you are no longer bringing home a paycheque.

If you have a pension program at work, be sure to sign up and contribute to the max. If you don’t, a smart option is to join the Saskatchewan Pension Plan. SPP will take on the hard part of retirement saving – the investing part. SPP will grow your savings in their low-cost, professionally managed pooled fund. You can make savings automatic by transferring money in from your bank account each payday – start small, and increase your savings when your income goes up.

At the finish line – retirement – your options will include a monthly annuity payment for life, or the more flexible Variable Benefit.

Check out SPP today!

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If you’re looking for a low-cost, effective way to improve your mental and physical health, the answer may be no farther away than a good pair of walking shoes.

Save with SPP decided to take a stroll through the Interweb to see what is being said about this reliable old form of exercise and transportation.

“Medical experts agree that walking is an easy way to improve physical and mental health, bolster fitness and prevent disease. While it’s not the only sort of exercise people should do, it’s a great first step toward a healthy life,” reports the CBC.

Walking, the broadcaster reports, “can help meet national recommendations that adults get at least 2½ hours of moderate-intensity physical activity every week. This helps lowers the risk of heart disease, high blood pressure, dementia, depression and many types of cancer.”

As well, the CBC continues, walking “also improves blood sugar levels, is good for bone health and can help you lose weight and sleep better.”

Some first-hand testimony on the benefits of walking can be found in a recent article in Readers Digest Canada.

Nancy Duguay, a 39-year-old nurse from New Brunswick, was trying to kick her smoking habit when “an idea struck her – walking instead of smoking,” the magazine reports.

She hiked to the top of nearby Sugarloaf Mountain, “in just my regular sneakers, a pair of shorts, and a T-shirt,” she tells Readers Digest Canada.

“I just felt so good,” Duguay states in the article. “My natural endorphins kicked in, and the craving was gone.”

“Almost every day since, she has gone for a walk—and the habit has changed her life. Not only did she quit smoking, but her resting heart rate dropped from 80 beats per minute to 60. The ritual has given her a lot more, as well: stress relief, mental-health management, and a sense of community,” the article reports.

“There’s a psychological and physical need to do it now,” she tells the magazine. “I want to keep healthy and keep moving.”

Some other findings from Readers Digest Canada:

• 150 minutes of walking per week “can reduce the risk of most chronic diseases by 20 to 50 per cent.”
• A brisk, 20-minute daily walk “is linked to a lower risk of seven types of cancer.”

The VeryWell Health blog lists a few more advantages of getting the running shoes on.

It burns calories, the blog notes – around 133 calories in 30 minutes for a person weighing 155 pounds.

It “helps strengthen the heart by improving the heart rate and improving circulation, which can lower blood pressure,” the article continues.

Walking can lower cholesterol levels and is great for easing joint pain. “Walking is one of the most important things you can do if you have joint pain or arthritis because it helps strengthen the bones and keeps joints flexible,” the article notes.

Finally, the article concludes, there is a strong link between brisk walking and longer life expectancy.

These are all very good points. We find we walk more in the summer, when the dog trails are clear of snow and ice, but we still get the pups out nearly every day in the winter. So, for sure see if you can build a little more walking into your day.

It can be difficult to save on your own for your retirement if you lack a workplace retirement program of some kind. That’s where the Saskatchewan Pension Plan can come in very handy. SPP is open to any Canadian with available registered retirement savings plan room. You can contribute any amount up to your annual RRSP limit, and you can transfer in funds from any other RRSPs you may have.

Once your savings dollars find their way to SPP, they will be professionally invested in a low-cost pooled fund. Your savings will grow as you continue to work and contribute, and when it’s time to retire, your options include receiving a lifetime monthly annuity payment or the more flexible Variable Benefit.

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Looking for ways farmers can thrive in retirement

Writing in Country Guide, Helen Lammers-Helps notes that farmers have some unique challenges when it’s time to park the tractor for the last time.

“For many farmers, being a farmer is part of their fundamental nature. It’s who they are and they can’t imagine a time when they won’t be a farmer. Who hasn’t heard a farmer say they want to die farming,” she writes.

However, she continues, the day will come when farmers have to exit the vocation they love.

They may need to retire “for health reasons, to make room for the next generation,” or to fulfill a promise to a spouse that they would “slow down,” or for financial reasons, explains Lammers-Helps.

But even an unexpected exit from farming can be managed – with a little advance planning, the article suggests.

“The good news is that each of us has been through many life transitions, and with some effort to plan to use the supports and resources available, the post-farming years can actually be looked forward to with anticipation,” she continues.

The article quotes Waterloo, Ont.-based psychotherapist Chad Bouma as saying there is no “one-size fits all” strategy to assist farmers in retiring. Help from accountants and lawyers, he tells Country Guide, will help them with the complexity of leaving the farming business and (if applicable) dealing with succession planning.

There’s also the change in routines, perhaps after many decades of farming, the article notes.

Burlington, Ont.-based grief and trauma therapist Selena Jones tells Country Guide that “while retirement can initially bring relief, she has noticed the loss of routine leaves some people feeling anxious and listless, which can manifest as sleep difficulties, frustration, irritability and anger.”

She says the retiring farmer needs to focus on next steps.

 “Pay attention to what sparks your interest but also what you know you don’t want to do. Think about what you liked to do when you were younger. Make note of what you’d like to explore when you have more time,” she states in the article.

As well, she suggests people think about what gives them a sense of purpose and fulfillment beyond farming, the article notes.

“Is it being more involved in their community or have they been so involved that they need to take a step back? What do they need to feel like they are in equilibrium,” she asks in the article.

Be open, she tells Country Guide, to “trying a new hobby or checking out a new group.” She urges retirees to “have fun with it. It can open the door to something we had no idea we’d enjoy,” she adds.

Social connections are “incredibly vital,” she notes, saying retirement offers more time to spend with “nieces, nephews, and grandchildren, or to nurture old friendships.” Mentoring younger farmers is another way to find purpose in your life after farming, the article adds.

The article concludes by saying that it’s all right to reach out for help if your retirement from farming is not working out for you – there are plenty of resources to help. “We can’t always do it on our own – and we don’t have to,” notes Jones.

If you are self-employed, you are in charge of your own retirement savings plan. If you find the idea of investing daunting, consider joining the Saskatchewan Pension Plan, a do-it-yourself retirement system open to any Canadian with registered retirement savings plan room. SPP will look after the investing for you, growing your savings in SPP’s low-cost, professionally managed pooled fund. And when it’s time to retire, you can opt for the security of a lifetime monthly annuity payment, or the flexibility of SPP’s Variable Benefit.

Check out SPP today!

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The book Retirement Reimagined by A. Cameron Strong is a fact-filled, well-written and clear walkthrough of all facets of retirement – from saving up, to living off the savings, and even on to the tricky phase of estate planning, wills and executor duties.

To answer the classic question of how much to save for retirement, the author first explains how you need to know what you are spending now (before retirement) as well as what you expect you’ll spend once retired.

He provides a handy checklist of fixed, discretionary and unexpected expenses you may be facing. Then, you need to think ahead to what income you’ll get in retirement – money from registered retirement savings plans (RRSPs), Tax Free Savings Accounts (TFSAs), registered retirement income funds (RRIFs) and their locked-in cousin, the Life Income Fund (LIF), insurance, annuity income, and maybe rent from a rental property.

There will also be money coming in from the Canada Pension Plan (CPP), Old Age Security (OAS) and for some the Guaranteed Income Supplement (GIS); others may receive workplace pension benefits.

Subtract future expenses from future income, he suggests.

“If this number is a positive, congratulations! You now know what your income number must be to cover off your expenses in retirement and you have a plan or have already reached your savings and retirement goals,” he writes. But if the number is negative, “you are not living within your means. You will need to find ways to cut your expenses or boost your income to avoid going further into debt before you retire,” he warns.

Ways to cut costs during your working years include “downsizing to a smaller dwelling or moving to a more affordable province or country,” or going to one car from two, and “paying off credit card debt immediately to save on high interest charges,” he writes.

Knowing what you need to cover your expenses is key to establishing a savings target, writes Strong. Many financial institutions suggest you need to save eight to 10 times what your last annual income was, he says – so for a family “with a combined family income of $130,000 per year,” the savings target would be $1.04-$1.3 million, he explains.

The book covers investments, ranging from low-risk, interest-bearing investments like bonds and guaranteed investment certificates and precious metals, like gold and silver, on to higher-risk categories.

Strong notes that gold and silver can be good investments in challenging economic times.

“Gold has an important economic role as a means of exchange should current collapse,” he explains. Gold and silver can be bought physically – apparently even at Costco – or via stocks in gold mining companies or exchange-traded funds that own precious metals. He calls these “paper gold and silver,” and says they are easier to buy and sell on the stock exchange and don’t require secure storage.

Higher risk investments (and the author recommends you get professional advice before entering into this category) include crypto, currency trading, real estate investment trusts (REITs), junk bonds, venture capital, penny stock and options.

Bitcoin, he warns, has had a wild ride in pricing. “In 2017 bitcoin was trading at around $3,000 U.S. Then it went as high as $60,000 U.S. in 2021 before `crashing’ down to close at $17,000 U.S. in 2022.” He adds that central banks remain on the fence about crypto, and some countries have even banned it.

He spends some time on do-it-yourself investing and its pros and cons.

“Do you have enough skills and knowledge to make sound decisions,” he asks. Are you being too conservative (losing out to inflation) or “not conservative enough?”

Is DIY your best long-term option, and what will you do “if you are no longer able to manage your own investments due to health issues.”

An option for DIY investors, he writes, is to go “hybrid” and have some of your investments managed professionally by a third party.

“Good investing is about the long-term experience and trying to avoid mistakes along the way that could damage your investment portfolio. It is vital to keep learning, researching and trying new strategies. But do so carefully and with knowledge and professional help!”

In a chapter on investing for retirement, he talks about borrowing to contribute to an RRSP.

“Who should be taking advantage of the RRSP loan strategy? Anyone who wants to make an RRSP contribution for the previous year in the first 60 days of the new year, has less cash on hand than they’d like to contribute, and has sufficient RRSP contribution room. And this is crucial: you are disciplined enough not to spend the refund.”

In a chapter about RRSPs and RRIFs, he makes another good strategic point.

There is an annual minimum withdrawal amount that kicks in a couple of years after you start your RRIF. If you don’t need that income, “you can deposit any excess cash or securities in-kind to a non-registered account.” From there you can consider moving the funds to a TFSA “to benefit from tax free growth.”

On annuities, Strong writes that an annuity “provides some income stability for the retiree when stock markets and other investments are volatile. It pays out the same amount no matter what is happening in the capital markets.” He says most financial advisors suggests an annuity should provide 30 per cent of your retirement income.

There’s a great chapter on wills, and a checklist showing the duties of an executor that sadly is becoming something more and more frequently needed as this writer leaves his mid-60s behind. Trust us, when a loved one passes, there is a lot of paperwork required.

Strong notes that “if a parent, relative, or spouse passes away the spouse or child of that person is not responsible for any debt held by that individual if it is not joint or co-signed.”

At the end of this excellent book Strong focuses on the need to stay healthy and focused in retirement. “You need a goal or a series of goals, something with purpose because that’s what makes life meaningful,” he advises. “Explore and find your niche!”

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Fourteen per cent of Canadians over 65 have “poverty-level” living standard: NIA

A new study from the National Institute on Ageing (NIA) suggests a sizeable number of Canadian seniors have a “poverty-level” living standard.

The NIA’s findings were the subject of a Wealth Professional article recently, written by Steve Randall.

The article notes that our aging citizens are “facing challenging times, with many dogged by poor finances, weak social connections, and a lack of retirement savings.”

The NIA study, the article continues, found three “key areas of concern” for over 50s in Canada, including “well-being, financial security and health.”

Only 32 per cent of those surveyed reported having strong social connections, with 36 saying their connections are weak, the article reports.

“While 39 per cent of respondents said they engage in social and recreational activities at least weekly, those with poor finances are more likely to be among the 20 per cent who said they engage in these activities only once a month or the 23 per cent who do so rarely,” Wealth Professional reports.

The research indicated that “long-term financial security” among Canadians over 50 was also pretty weak, the article continues.

“Just one in three think they will be able to retire when they want to, with one in four having just $5,000 or less saved, despite working,” the article reports.

A startling finding, Wealth Professional reports, is that “a new measure called the Material Deprivation Index reveals that one in five older Canadians has a poverty-level standard of living including 14 per cent of over 65s.”

A quarter of those surveyed said “their income is not enough for their current or long-term needs, especially among 50-64s without a workplace pension and those with fair or poor health.”

While most of the respondents said they were able to access healthcare, only 48 per cent of those “who said they need home-based services were able to access them,” the article adds. A whopping 80 per cent want to “age in their own home,” with only three per cent showing a preference for moving into a long-term care facility, Wealth Professional notes.

“As Canada’s population ages, this research underscores the urgent need for bold, evidence-based action to combat ageism, strengthen financial security and ensure equitable access to health and social supports. Now is the time for policymakers and communities to come together to build a Canada where older adults feel valued, included, supported and better prepared to age with confidence,” NIA’s Alyssa Brierly tells Wealth Professional.

Last year, the plight of seniors facing a low-income retirement was covered off in an interview Save with SPP did with B.C.’s Carole Fawcett, one of the backers of the Tin Cup lobby group. You can see that article on their website here.

The research suggests that those without a workplace pension plan tend to have more income problems than those who do.

If you can join a retirement savings plan at work, be sure to sign up and contribute to the max. If there isn’t such a plan at your workplace, no problem – you can join the Saskatchewan Pension Plan, a voluntary defined contribution plan that’s open to any Canadian with registered retirement savings plan room. With SPP, you decide how much you want to contribute, and SPP can do the rest. You can automate your contributions, which will then be invested in the low-cost, professionally managed, pooled SPP fund. At retirement, you can opt for the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit plan.

Check out SPP today!

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It’s a tough landscape for saving out there. Higher costs for housing, groceries, fuel, and life in general make it very hard to squeeze out a few bucks to earmark for your post-work future.

However, having been the brother of a very frugal sister, Save with SPP has seen what a little tightfistedness on the spending side can do for one’s piggy bank. Let’s take a look at some frugality tips from the experts.

The Little House Living blog offers up some “frugality outside the box” ideas.

One is to “meal plan for an entire month.” With this idea, you’d not be eating out at restaurants, and would know what to shop for at the grocery store.

Another radical idea – “get rid of the cell phone and go with landline.”

“So few of us truly NEED a cell phone, we’ve just become spoiled to the idea we do. Also, extreme? Get rid of the TV and thus the streaming needs. With all that, do you need internet,” the blog asks.

Wow. That’s extreme frugality!

A final one from this blog that we’ve not seen before is “shop the perimeter of the store… it literally cuts grocerying in half.”

The A Dime Saved blog features some tips that “people laugh at, but actually work to save money.”

The blog suggests making your own condiments. “You’d be surprised at how easy—and cost-effective—it is to whip up your own condiments. Salad dressings, flavored vinegars, or even your own ketchup—once you get the hang of it, you’ll never want to buy those pricey store versions again,” the blog notes. We recall our grandma in New Brunswick making her own mayo, among other things.

What about cutting your own hair, asks the blog.

“For some, the idea of cutting their own hair is terrifying, but with a little practice and the help of online tutorials, you can easily save on salon visits. A trim here and there can make a huge difference, and you might just find you’ve got a hidden talent for it. Worst case? You save money,” the blog explains.

Finally, a more familiar one – grabbing a few toiletries when you stay at a hotel.

“From soaps to toilet paper to tea bags, those small items are already factored into your hotel bill. Why not take advantage of them? It’s one less thing you have to buy when you get home,” the blog concludes.

Finally, GoBankingRates provides a few tips for retirees.

First, the blog suggests, review your streaming subscriptions and cut back. “If you take a close look at your monthly bills, you might be surprised to see how many recurring charges you rack up every month,” the blog warns. There are cheaper and even free streaming options out there, the blog adds.

“Comparison shop,” the blog advises. “Nearly any product or service you’re interested in is likely offered by a number of different vendors, so you can pick and choose the combination of price, service and quality that works best for you.”

As well, retirees who are also empty nesters should consider moving to a smaller house, or an apartment.

“Frugal living tips can go a long way toward saving for retirement or living your best life once in retirement,” the article concludes.

If you are able to squeeze some savings out of your monthly spending, then for sure retirement saving is a good place to direct those loonies to. If you are saving on your own for retirement, take a good look at the Saskatchewan Pension Plan. SPP takes the hassle out of retirement saving by making it simple – you contribute however much you want, and SPP invests it in a low-cost, professionally managed pooled investment fund. At retirement, your options include collecting a lifetime monthly annuity, or the more flexible Variable Benefit.

Check out SPP today!

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Retirement savers can do a big “catch up” in their 50s

By the time you’ve reached your 50s, the kids are usually fully educated and gone from the back room, your mortgage is close to paid off, and you’re making the most you ever have – a perfect time to catch up on those neglected retirement savings.

Writing for Money Canada, Romana King takes a look at the “catch up” years – your 50s.

“According to a data report released by Money.ca, the average retirement savings for Canadians aged 55 to 64 is $833,696 — a significant increase compared to the $183,067 saved by those in the 45 to 54 age range,” she writes. “This sharp rise suggests that many Canadians focus heavily on increasing their retirement contributions in their 50s in an effort to close the gap before they retire,” she continues.

So, she explains, if you haven’t actually got around to retirement saving and you have hit the big 5-0, don’t get stressed. “If you’ve fallen behind on your retirement savings, don’t panic — there’s still time to make meaningful progress towards this goal,” she notes, reassuringly.

Her article shows a recent social media post by a 49-year-old woman who confesses that she is “almost 49 and I have zero retirement savings. No exaggeration. Absolutely nothing…. And I know I can’t be the only one.”

It’s not a surprise, continues King, that those among us who are middle-aged aren’t finding a lot of spare dollars to tuck away for their golden years.

“Many middle-aged Canadians report feeling unprepared, often due to competing financial responsibilities such as mortgages, children’s education, and daily expenses. A survey by YouGov found that only 19 per cent of Canadians aged 35 to 54 feel confident in their retirement savings, compared to 26 per cent of those over 55. This growing concern underscores the need for proactive financial planning, even for those who feel behind in their savings journey,” she adds.

So how to catch up? Take a look at how much room you have in your registered retirement savings plan (RRSP) or Tax Free Savings Account (TFSA), she advises. If you haven’t been contributing, you may have quite a lot of room in either of these savings vehicles, she explains.

Next, make savings automatic.

“Automate contributions to your RRSP, TFSA, or other savings accounts to ensure that you’re putting aside money regularly. Payroll deductions or pre-authorized transfers make it easier to stay disciplined,” she writes.

Consider meeting with a financial adviser to “maximize investment returns” through balancing your portfolio “between high- and low-risk assets,” taking advantage of tax-efficient savings vehicles, and looking at adding “dividend-paying stocks, mutual funds, or bonds that align with your risk tolerance and retirement timeline.”

Have you calculated when you think you want to retire, and how much you’ll get from government or company retirement programs? King says this is a crucial bit of research to carry out.

As well, in your high-earning 50s, it’s time to “pay off high-interest debt” and consider “downsizing or simplifying living arrangements,” she continues.

If it doesn’t look like you’ll have saved enough by your chosen retirement date, consider working longer, or part time, or developing a “side hustle,” she suggests. If you find yourself retiring after age 65, you can delay the start of your Canada Pension Plan and Old Age Security payments, increasing what you’ll get per month.

“Catching up on retirement savings in your 50s is not just possible — it’s achievable with a well-thought-out plan. By taking advantage of tax-advantaged accounts, reducing debt, optimizing investments and boosting income where possible, you can bridge the gap and retire comfortably. Remember, the best time to start was yesterday, but the next best time is today,” she concludes.

The Saskatchewan Pension Plan is an invaluable partner for your retirement savings. SPP’s Balanced Fund features exposure to Canadian and international equities, fixed income, real estate, and more – all provided via a low-fee, professionally managed, pooled fund. If you want to make your contributions automatic, SPP can do that, via pre-authorized contributions from your bank account that can coincide with payday.

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