Four tips to help avoid running out of money in retirement

An alarming stat from south of the border – 45 per cent, or just under half of Americans retiring at age 65 “risk running out of money.”

That grim fact was recently reported by Markets Insider through the MSN network. Markets Insider was reporting on research from Morningstar.

Morningstar also found out that single women are even more likely to run out of money in retirement, at a rate of 55 per cent.

Who’s at the biggest risk for running out?

“The group most susceptible to ending up in this situation are those who didn’t save toward a retirement plan,” states Spencer Look, associate director of the Morningstar Center for Retirement and Policy Studies, in the article. But, the piece continues, “retirement advisors say even those who think they’re prepared aren’t.”

While the article talks about a U.S. experience, the concepts seem to apply here. A top risk is – not surprisingly – spending too much of your savings too quickly.

“After retiring, most people’s spending habits either remain the same or go up. When you have more leisure time on your hands, more money goes toward entertainment and travel, especially in the first few years of retirement. The outcome is a higher withdrawal rate, which can push you into a higher tax bracket,” states JoePat Roop of Belmont Capital Advisors in the article.

Money saved in a tax-free vehicle (in Canada, this would be a Tax Free Savings Account) is not taxed as income when withdrawn, and is a way around the problem, the article notes.

Using registered funds to pay off big debts, like a car loan or the remainder of a mortgage, is also a bad idea and a way to run out of money early, the article notes. Consider the tax consequences of using registered funds to pay down debt, the article suggests.

A third problem is what the article calls “sequence risk.” That’s the risk of withdrawing money when the market is down, effectively creating a “sell low” problem. Diversification is the antidote here – be sure some of your investments are in “principal-protected” investments such as (we will Canadianize here) guaranteed investment certificates (GICs), annuities, or government bonds.

The final problem is “lack of appropriate risk-taking” in investments, the article notes.

“People don’t take into account how expensive things get over time, not realizing that they can live another 40 years in retirement. You can’t get rich investing your money at five per cent,” Gil Baumgarten of Segment Wealth Management tells Markets Insider.

So, let’s sum up what we’ve learned here.

• First, understand the tax consequences before withdrawing from your savings.
• Don’t withdraw large sums from registered accounts to pay debts (tax consequences).
• Diversify, so you won’t only have stocks to sell when you have to withdraw savings.
• Don’t try to avoid investment risk entirely by going all-in on GICs and interest-bearing accounts.

Now that we are seniors, we can attest to the fact that you have to worry way more about taxes than you ever did at work. That’s because you are getting income from multiple sources instead of one paycheque. If you are having trouble managing all this, consider getting professional help.

Did you know that the Saskatchewan Pension Plan is open to both individuals and companies? SPP is scalable, so it works for businesses both large and small as your company pension plan. Here’s a more detailed look at how SPP can help you deliver retirement security for your employees.

Get SPP working for you!

Join the Wealthcare Revolution – follow SPP on Facebook!

“Overlooked” annuities can play a key part in delivering retirement income

While most people are relieved that interest rates are starting to head back down, there’s another group – savers – who are less pleased.

So writes Rob Carrick of The Globe and Mail.

“Declining interest rates are great for borrowers, but they take an axe to returns for people who want to avoid putting their money at risk,” he notes, observing that guaranteed income certificate (GIC) rates have fallen to about five per cent these days from a high of six per cent a year ago.

But interest rates are still higher than they have been for decades, and that’s good for those thinking about investing in an annuity, he notes.

“Annuities have also been affected by lower rates, but you could still get a lifetime yield of five per cent as of recently,” he writes.

Hold up. A yield on an annuity? An annuity is where you hand the provider a lump sum of money, and they guarantee you a monthly lifetime payment. It’s not like a bond or GIC that matures at a key date – it’s paid for life.

Carrick explains.

“What’s lifetime (annuity) yield? It’s a way of looking at annuity returns that was used recently by Clay Gillespie of RGF Integrated Wealth Management to make a point,” he writes. “A life annuity is an insurance contract where you exchange a lump sum of money for a guaranteed stream of lifetime income that is usually paid monthly. Basically, you’re buying your own pension,” he continues.

“It’s hard to say what the actual return is from an annuity because you don’t know how long you’ll live. What Mr. Gillespie did was calculate returns based on life expectancy,” Carrick explains.

In the article, a 65-year-old male converting $100,000 to an annuity would receive $582 a month, and has a life expectancy of 21 years. That’s a yield of 5.3 per cent, the article explains.

For a woman of the same age and same $100,000 annuity, the income is $544 a month for 24 years, a yield of 5.5 per cent.

These calculations assume the people will live an average lifespan. If they live longer than 21 or 24 years respectively, they still receive a monthly payment. If they live less than the average lifespan, their payments stop when they pass away.

“This brings us to a legitimate reason why annuities remain a fringe retirement product. If you die in the years shortly after buying one, you end up having sacrificed a chunk of your savings to buy a short-term flow of income,” Carrick writes.

However, there are even some remedies for those who die younger than expected, the article continues. Some annuities have guarantee periods, say five years. “If you die during (the guarantee period), your beneficiary or your estate will get” the balance of the money left over, the article explains. Other types of annuities provide for some or all of the payment to continue to your surviving spouse.

On the plus side, an annuity means you will never run out of money during your lifetime, the article observes. The article suggests putting some of your money – enough to cover everyday costs – into an annuity and continuing to invest the rest.

Did you know that the Saskatchewan Pension Plan offers its retiring members the option of converting some or all of their account balance to an annuity? Options include annuities with a guarantee period, and annuities that continue to a surviving spouse. The SPP Pension Guide provides complete details on available annuity options.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Join the Wealthcare Revolution – follow SPP on Facebook!

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

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

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

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

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

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

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

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

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

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

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

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

Get SPP working for you!

Join the Wealthcare Revolution – follow SPP on Facebook!

Can there really be too much frugality?

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

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

Writing for CTV News, Christopher Liew says yes.

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

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

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

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

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

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

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

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

What are some signs to watch out for?

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

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

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

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

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

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

Get SPP working for you!

Join the Wealthcare Revolution – follow SPP on Facebook!

Starting public pensions earlier might alleviate senior poverty: report

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

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

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

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

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

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

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

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

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

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

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

In the U.S., 35 per cent say they haven’t started saving for retirement yet

A new study by U.S. firm FlexJobs has found that more than a third of Americans have not yet started to save for retirement.

The study was featured in detail in a recent article in Consumer Affairs.

The study, carried out in June of this year, involved interviews with 2,000 U.S. workers. “The group answered questions about their current and future retirement plans,” the publication explains.

“Overall, 65 per cent of the survey respondents reported they are currently saving for retirement, with 35 per cent not yet starting their savings plans. Of that group, 20 per cent said they aren’t currently saving, but have plans to start in the future,” the article notes.

Fewer women than men said they were saving for retirement – 61 per cent of men versus 52 per cent of women, the article continues.

Major differences were seen in savings rates when the data was crunched by generation, the article reports.

“Baby boomers represented the largest percentage of retirement savers, with 61 per cent saying they’ve been saving for retirement. On the other hand, 58 per cent of Gen Xers and 46 per cent of millennials reported the same,” Consumer Affairs notes.

“However, over 25 per cent of millennials and nearly 20 per cent of Gen Xers said they aren’t currently saving for retirement but plan to start in the future,” the article adds.

“These results aren’t wholly surprising, as baby boomers are closer to retirement age and have likely had a longer period of time to save,” states Keith Spencer of FlexJobs in the article. “Those who are at earlier stages in their careers may also have competing financial priorities, like student loan debt, which can impact their ability to save. Similarly, different generations have experienced varying economic conditions, which could disproportionately affect career opportunities and savings potential.” 

Do the survey’s authors have any encouraging words for those among us who are yet to put that first retirement savings dollar into an account? Is it too late for them?

“It’s never too late for consumers to start planning and saving for retirement,” Spencer tells Consumer Affairs. “It’s important to begin by establishing some clear retirement goals that account for factors like your ideal retirement lifestyle and your target retirement age. From there, you can start creating a budget, tracking your income and expenses, and prioritizing saving wherever possible. Consumers should also explore any employer-sponsored retirement plans that might be available to them through their workplace, which can be particularly beneficial if their employer offers matching contributions.” 

The article concludes by warning newbies of several factors that can impact retirement savings plans – financial constraints (i.e., your ability to set aside anything for retirement), market volatility, “societal spending pressures,” caregiving responsibilities and a lack of financial literacy.

If you are worried about how to invest your savings – and aren’t in a pension plan or retirement program at work – then the Saskatchewan Pension Plan may be just what you’ve been looking for. You decide how much you want to contribute to your SPP account, and we do the rest – professionally investing your savings in a low-cost pooled fund, and growing your nest egg until it’s time to retire. Then, SPP member options include a lifetime monthly annuity payment or the more flexible Variable Benefit.

Get the team at SPP working for your future!

Join the Wealthcare Revolution – follow SPP on Facebook!

Successful habits of those living beyond age 100

A recent article in The Times of India took a look at the secrets of longevity – habits of those who have already lived beyond the century mark.

The article notes that as recently as 2000, there were only about 1.5 million people around the world age 100 and older – by 2021, there were more than 5 million.

The Times cites an article in the journal GeroScience that found “dietary practice and weight management in healthcare strategies to promote healthy aging played a pivotal role in longevity. It also recognized rural living styles and sleep hygiene as potential factors contributing to healthy aging.”

While you might think that genes have the most to do with this – if your parents lived past 100, then maybe you will – the article says the study found that “non-genetic or environmental factors” account for 60 per cent of “successful aging.”

Okay then – what can we do to promote a longer lifespan?

First, the article tells us, is diet.

“A healthy diet, like the Mediterranean diet, along with eating a variety of foods, including milk and grains, helps people live much longer, as seen in centenarians,” the Times reports.

“The study also suggests avoiding smoking and tobacco, as they harm the body in many ways. Smoking increases the risk of premature death but quitting it can reduce this risk. Smoking is injurious to both your mental and physical well-being,” the article continues.

So, eat healthy and get rid of the smokes. What else?

Sleeping, we are told, is very important. “In a study of three European cohorts, individuals without sleep disturbance compared to those with severe sleep disturbance were projected to live six additional years in good health and three more years without chronic diseases between the age of 50 and 75,” the Times notes. “Sleep satisfaction was also found to modulate the link between occupational stress and metabolic syndrome or BMI while both long and short sleep durations were associated with an increased risk of death,” the article states.

Okay, no more late nights and catnaps. Are there other tips?

The research, reports the Times, suggests that those of us taking fewer medications in our older years will live longer.

“On average, centenarians were taking 4.6 medications … versus 6.7 for those aged 80 and above. This lower medication usage may reflect a lower disease prevalence in centenarians,” the article reports.

Finally, the research has found that rural living may also be a factor.

“Over 75 per cent of centenarians lived in rural areas, suggesting that rural lifestyles may contribute significantly to prolonged health and longevity. The study notes that enhancing green spaces, tree canopy and public parks to encourage rural lifestyles may boost life expectancy and postpone epigenetic ageing,” the report concludes.

So, if you’re not already living outside a city, be sure to spend lots of time in healthy rural-type settings like parks.

If you are lucky enough to enjoy a ripe old age, it’s important to take steps to ensure you don’t outlive your savings. Members of the Saskatchewan Pension Plan have the option of converting some or all of their savings to an annuity when it’s time to retire. With an SPP annuity, you will receive a monthly payment on the first day of every month for as long as you live – you’ll never outlive your savings.

Get SPP working for you!

Join the Wealthcare Revolution – follow SPP on Facebook!

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!