GenXers
Jul 24: BEST FROM THE BLOGOSPHERE
July 24, 2023![](https://i0.wp.com/www.savewithspp.com/wp-content/uploads/2014/01/185936832-blog-490x290.jpg?resize=490%2C290)
Making a case for government-run long term care insurance: NIA
It’s not something we are ever prepared for. But many Canadians find out the cost of long-term care can range into the thousands per month when something happens to a loved partner or parent. It’s a cost that few expect or plan for.
Those are some of the reasons why the National Institute on Ageing (NIA) is calling for a national long-term care insurance plan, reports The Toronto Star.
NIA’s Dr. Samir Sinha calls such a program “a necessary `social contract’ that will especially help GenXers, the eldest of whom are marching towards 60, and the massive cohort of millennials, who will start turning 50 in the early 2030s,” the newspaper reports.
“More people are living paycheque to paycheque and so they aren’t really doing a great job saving for their retirement,” Sinha, who is also director of geriatrics at Sinai Health and University Health Network, tells The Star.
“And the biggest thing that can really threaten anyone’s retirement or how they live in retirement will be if they all of a sudden have long-term-care needs,” he adds.
Long-term care is defined by the NIA “not as the traditional nursing home depiction, but as a mix of supports or health care services from public or private care providers across a range of settings, including institutions, the community and individual homes.”
“Many will one day need extra help, with bathing or getting dressed; or from physiotherapists or occupational therapists. It’s not just the potential vulnerability of old age, many will be living with disabilities. Some coverage is provided currently by a patchwork of provincial systems across Canada, the paper said, but often expenses are paid by the individual, if they can afford it,” the article notes.
Often, the article reports, people think they can look after an elder family member on their own. This is harder than it may sound, states York University’s Pat Armstrong in the article.
“The assumption that care will be provided by family, especially women, often leads to an unhappy awakening, given that many caregivers are not qualified to provide the support needed,” the article notes.
“It takes medical training that many don’t have, whether it’s looking after a partner with dementia or a chronic disease,” the article continues.
“It’s especially the case now when you have people with catheters and kidney failure and all kinds of other equipment they go home with,” Armstrong tells The Star. “That requires an incredible amount of training and skill. And the recognition that those skills mean you have to pay for them.”
The article notes that Germany, Japan, the Netherlands, Taiwan and the US state of Washington all provide state-run long-term care insurance programs for citizens.
Without any state insurance program, we face some rather dizzying costs, the article reports.
“In nursing homes… co-payment fees cost more than $33,000 a year for a private room and $28,000 for a semi-private room. In-home services, the paper said, can range from $1,000 to $3,500 dollars per month while the cost of complex home care in Ontario can cost as much as $25,000 a month.”
It will be interesting to see if any levels of government in Canada explore this idea, particularly given the fact that the NIA predicts that one quarter of Canadians will be over 65 by 2030 and by 2048, the eldest GenXers will be in their 80s.
Did you know that the Saskatchewan Pension Plan is portable? Since SPP is a program that is independent of any employer, if you change jobs, you can continue to grow your SPP pension. Check out SPP today!
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Written by Martin Biefer
![](https://i0.wp.com/www.savewithspp.com/wp-content/uploads/2018/05/Martin-Biefer-profile-257x327.jpg?resize=257%2C327)
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.
Aug 16: BEST FROM THE BLOGOSPHERE
August 16, 2021![](https://i0.wp.com/www.savewithspp.com/wp-content/uploads/2014/01/185936832-blog-490x290.jpg?resize=490%2C290)
Has pandemic “self-care” spending disrupted Canadians’ retirement plans?
It seems that we are starting to near the end of the pandemic, as economies across the country begin to slowly re-open.
But, according to an article in the Globe and Mail, there is concern that Canadians have been spending so much more money on “self care” in light of the pandemic that there may be little left for the retirement savings piggy bank.
The newspaper cites a recent Bank of Nova Scotia study that found “70 per cent of Canadians started partaking in at least one self-care activity during the pandemic, with 60 per cent of those spending an average of $282 in the past 12 months.”
By self-care, the Globe says, we are talking about “online yoga classes, baking supplies, $5,000 Peloton bikes and class memberships, $85 meditation apps, or meal delivery services that take the thinking out of dinner prep.”
While those approaching retirement spent the least on these categories, the Globe says younger people spent plenty. “Although they struggle to find the money for down payments on homes and families, even in good times, the Scotiabank survey found that Canadians 18 to 34 significantly outspent others (on) self-care activities in the previous year.” Their average rate of spend was $395, the article notes.
The article says that while it is understandable that people might spend money differently during the pandemic, it is important that they get back on track now that things are returning to a more normal setting.
“It’s still important for financial advisors to help clients stick to their bigger, longer-term financial goals like debt repayment and saving for retirement,” the article tells us.
Another poll, this one from the National Institute on Retirement Security in the U.S., points out that younger people already have obstacles in the way of their retirement savings plan. The NIRS media release is featured on the Le Lezard website.
In the release, NIRS spokesman Dan Doonan notes that “Generation X and Millennials are the first two generations that will largely enter retirement without a pension,” and states that it is not surprising they are anxious about their long-off golden years.
The research shows that 64 per cent of American Millennials and 54 per cent of GenXers are “more concerned about their retirement security in the wake of the COVID-19 pandemic.”
So let’s link these two ideas. Everyone is spending more on self-care, particularly younger people, due to the pandemic – but there are worries by younger people, GenXers and Millennials, about retirement security, given the lack of a pension at work.
If you don’t have a pension at work, you need to think about funding your own retirement. Government benefits are being improved, but currently deliver a fairly modest benefit. You have the power to supplement that future income by setting up your own retirement savings program. Take a look at the Saskatchewan Pension Plan – it offers everything you need for a do-it-yourself pension plan. You can set up automatic contributions from your bank account, or chip in lump sum amounts throughout the year. SPP will invest and grow your savings, and when you turn in your parking pass and security lanyard, SPP will help you convert that nest egg into an income stream. Check out SPP today, as the plan in 2021 is celebrating its 35th year of delivering retirement security.
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
![](https://i0.wp.com/www.savewithspp.com/wp-content/uploads/2018/05/Martin-Biefer-profile-257x327.jpg?resize=257%2C327)
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.
Aug 9: BEST FROM THE BLOGOSPHERE
August 9, 2021![](https://i0.wp.com/www.savewithspp.com/wp-content/uploads/2014/01/185936832-blog-490x290.jpg?resize=490%2C290)
Could a change in mindset help boost your retirement savings?
An interesting article in Entrepreneur magazine suggests a change in mindset can help GenXers augment their retirement nest eggs.
The article starts out by making the target for retirement savings clear.
“GenXers, did you know that experts say you need to have saved a whopping six times your income for retirement by the time you’re 50? If you were born between 1965-1980 (41-56 years old), you’re at that age or close to it,” the article begins.
“In other words, if you make $50,000 per year, you need to have at least $300,000 saved. If you make $150,000 per year, you need to have at least $900,000 saved,” we are warned.
That’s a lot of money – so what happens if we don’t get there?
Plenty, the article cautions.
You’ll face a “rising cost of living” without savings, the article states. The article – aimed at a U.S. audience – talks about healthcare costs, here in Canada that would refer to things like long-term care. Without enough savings, “you may have to work longer,” government pensions probably won’t cover all your costs, and you may “end up selling something,” like your home.
Bottom line is that “you may have to accept a lower quality of life” without retirement savings, Entrepreneur concludes.
But there’s a cure, and it is a simple one – reinvent your mindset, the article advises.
“When you start thinking about ways to save for retirement all the time, it can make a huge difference in how much you ultimately do save,” the article suggests.
Having the drive and determination to do something will make you unstoppable, the article urges. So “get laser focused” and “dig into grit.” This latter idea means having “courage, conscientiousness, perseverance, resilience and passion for something,” the article explains.
So if you just can’t find a few dollars to save each month, Entrepreneur suggests getting “a side hustle” of some sort. Even $10 here and there can add up over time, we are told. Be sure (again, this is a U.S. piece) to maximize your contributions as much as possible to savings programs like a registered retirement savings plan (RRSP) or tax-free savings account (TFSA).
Be prepared to work longer if you have to. This will also allow you to delay your government retirement benefits and collect more, later. Look at downsizing to save money, and budget “like crazy.”
“Do anything (within reason) that you have to do to get your retirement savings because you are laser-focused,” the article concludes.
Save with SPP has been a retirement saver since age 25, when we first learned about RRSPs. Some suggestions we can add to the good advice in Entrepreneur is that every little bit adds up over time. If you took all the “free money” you get from winning on a scratch ticket, returning cans and bottles, getting cash back on a credit card or income tax refunds and put it into savings, it will add up to a tidy sum over time.
Saskatchewan Pension Plan members know that they have contribution flexibility. If you want to contribute a set amount each payday, no problem – set up an automatic withdrawal from your account. If you want to put in bits and pieces of savings now and then, perhaps all you need to do is set up SPP as a bill on your banking website. SPP will take that cash, invest it, and help you turn it into retirement income down the road. Be sure to check out SPP today!
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
![](https://i0.wp.com/www.savewithspp.com/wp-content/uploads/2018/05/Martin-Biefer-profile-257x327.jpg?resize=257%2C327)
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.