A look at the best of the Internet, from an SPP point of view

The road to retirement begins with a first, small step

Let’s face it – with workplace pensions becoming as scarce as nice weather in a Canadian spring, the high cost of housing and living and stagnant wage growth, saving for retirement is not an easy thing to get going on.

The MoneyCoach.ca blog offers some great ideas on how to get into that important savings habit, even if money is tight.

Author Debra Pangestu calls saving for retirement “a growing concern among Canadians,” adding “if we’re struggling to make ends meet now, how are we going to take care of our expenses in the future when we’re no longer earning the same income we used to?”

Her sage advice is to begin retirement planning early. “Start squirrelling away money the soonest you can, even if it’s just $25 a week,” she writes. This small amount of money, she explains, can really add up. A saver starting at age 25 would have – assuming six per cent interest – a whopping $190,000 in retirement savings by age 65.

Even small amounts can really add up, and, notes Pangestu, “if you get a raise at work or transition to a better-paying job, it’s a good idea to bump up your monthly retirement savings amount.”

Her other tips include making a realistic budget, one that includes retirement savings, and sticking to it. “If your expenses are less than what you earn, you’re in good shape. But if your expenses exceed your income, it’s time to look for holes in your budget,” she writes. A budget shows where your money is going, she says, and that knowledge can help you “identify areas you can cut back on.”

Her other tips including automating your retirement savings, cutting back on expenses so that you can “check for opportunities to save money,” and look for new ways to make money. She suggests looking for jobs that offer good retirement benefits and generally cutting back on credit card spending.

Following the steps that she suggests sounds like a solid way to get into the retirement savings habit.

Some surprises you’ll experience in retirement

Writing in the GoBankingRates.com blog, author Cameron Huddleston discusses 13 surprising things about early retirement.

Among the highlights is looking forward to Mondays. After retirement, “the start of the workweek now means… five days of relative peace and quiet (for) errands or (to) go to the gym,” the article notes.

You’ll feel less stressed than you did at work, the blog promises, and that in turn should help improve your health. You’ll be more social, the blog says, given that there’s more time for friends and family. Travel is cheaper because you can leave at any time (no need to book time off work), and you’ll find you have become a morning person.

Putting it all together, setting up a regular retirement savings program for yourself is an essential step you can take today to ensure you’re not stressed financially in retirement. The land of retirement is hard to imagine when you’re still punching the clock, but it’s there waiting for you. A great way to set up your own pension plan is to sign up for the Saskatchewan Pension Plan. You can start small, and you can automate your savings via direct deposit to SPP from your bank account. After SPP expertly invests your money, you’ll have options at retirement for how you want to receive your lifetime stream of income. Think about starting your own “set it and forget it” retirement savings plan today.

Written by Martin Biefer
	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, classic rock, and darts. You can follow him on Twitter – his handle is @AveryKerr22