Boomers will recall what happened where our parents retired. It was literally, in most cases, getting the gold watch at 65 and leaving the workforce entirely for a leisurely life of golf, visiting relatives, the bridge club, and so on.

Turn the clock forward from the 1980s to the present, and it’s a very different story.

According to Statistics Canada, the percentage of Canadians of senior age is growing. In 2020, the agency reports, “18 per cent of the Canadian population were aged 65 and older,” a percentage expected to grow to 24 per cent by the end of the 2030s.

Our older folks “are living longer and healthier than previous generations,” and that’s one reason why more of them than ever are working or volunteering, the article notes. Stats Canada reports that 13.8 per cent of Canadian seniors were working or volunteering in 2020, up from just six per cent 20 years earlier.

Is it just health and vitality that’s keeping older folks working?

A recent H&R Block Canada survey found that 50 per cent of those surveyed planned “to have a side gig when they retire.”

That may be driven by the reality that they can’t afford to fully retire at 65, notes the media release setting out the survey results. “Fifty-two per cent don’t feel they have enough money left at the end of the month to save for their retirement,” the release notes. And only 46 per cent “feel good about their retirement strategy,” the release notes.

“Not so long ago, the traditional vision of retirement was that at around 65 years old, Canadians ‘hung up their hats’ and celebrated the end of full-time employment. Enjoying the steady income of their company/government pension, they were ready to embrace new life ventures in pursuit of the things they never previously had time for,” states Peter Bruno, President of H&R Block Canada, in the release. “What we’re seeing now is that the vision for retirement has evolved dramatically – fuelled by shifts in tax-friendly savings plan options, evolving workforce realities, the gig economy, and the prevailing economic environment.”  

An article in Business Insider suggests the rising cost of living is also a factor.

“Seniors are re-entering the workforce in growing numbers,” the article reports, citing a report from USA Today. “As inflation squeezes them out of retirement, many are taking jobs as cashiers, retail associates, and hosts at local restaurants, among other service industry jobs,” Business Insider reports.

Steve Weeks, 69, says he went back to work at a Florida restaurant because “the extra money is helpful.” The article goes on to say that older workers are seen by many as being “more dependable, displaying higher levels of punctuality, lower absenteeism, and less inclination towards job-hopping.”

There can be other, non-monetary benefits derived from working into your senior years, reports Harvard Health Publishing.

“There’s increasing evidence that the payoff of working past age 65 may go beyond income. Some studies have linked working past retirement with better health and longevity,” the article notes.

“A 2016 study of about 3,000 people, published in the Journal of Epidemiology and Community Health, suggested that working even one more year beyond retirement age was associated with a nine per cent to 11 per cent lower risk of dying during the 18-year study period, regardless of health,” the article continues.

Another study found that “people who worked past age 65 were about three times more likely to report being in good health and about half as likely to have serious health problems, such as cancer or heart disease,” the article notes. Research has also established a link between working past retirement age and “a reduced risk of dementia and heart attack.”

Most of the folks we know still working at part-time or volunteer jobs cite the benefit of being part of a time, and having a purpose and sense of belonging. You do miss social interaction with workplace friends after you hang up the ID badge.

If you’re a member of the Saskatchewan Pension Plan (SPP), and plan to work beyond age 65, be aware that the plan allows you to start turning savings into income as late as late as age 71. So if you work after turning 65, you can still contribute to your SPP pension nest egg for another six years. It’s another helpful feature of SPP, which has helped deliver retirement security since 1986.

Another great bit of news — SPP members can now make annual contributions equal to their available registered retirement savings plan (RRSP) room! There is no longer an annual limit on how much you can contribute to SPP, and as well, there is no limit on how much you can transfer into SPP from your registered retirement savings plan (RRSP). SPP retirement saving is now limitless!

Join the Wealthcare Revolution – follow SPP on Facebook!

By Sheryl Smolkin

 

Hi,

Today we are continuing with the 2014 savewithSPP.com series of podcast interviews with personal finance bloggers. I’m talking to Krystal Yee who blogs on “Give me back my five bucks” and the “Frugal Wanderer.”

With over eight years of professional experience in marketing, communications, and writing, her career has spanned a variety of different industries. From ghost writing in the provincial government, event coordinating for a professional hockey team, to marketing cold water survival gear – she’s done just about everything.

In 2012 Krystal lived in Stuttgart, Germany. There, she worked remotely for clients such as the Toronto Star (moneyville.ca), Canadian Living, and Flare Magazine. In her spare time, she loves travelling, hiking, tweeting, and analyzing baseball statistics.

Hi Krystal. Thanks for joining me today.

Thanks for having me.

Q: When and why did you start your blog “givemebackmyfivebucks”?
A: Well, I started that blog back in February 2007, because I was finding it hard to relate to my friends in real life about the money issues I was having. I was uncomfortable bringing up a topic that, at the time, seemed really personal.

So once I found that personal finance blogs existed, I became really inspired and motivated, knowing there are other people out there like me who wanted to change their lives. That was the reason why I started my own blog.

Q: Seven years ago you had over $20,000 in student debt and no money. Now, you are a debt free homeowner. How did you do it?
A: It was a lot of hard work and sacrifice, but I knew that I needed a life change. And I decided not to hide from my debt any longer, and that was really, really scary. The first thing I did was calculate how much I owed. I gave myself one year to get out of debt. So I started building budgets, saving money any way I could, and increasing my income. And actually attacking my debt from all of those angles helped to speed up the process.

Q: What are some of the mistakes you think that you made along the way before you got on your debt repayment plan, and what would you do differently if you had it to just do all over again?
A: I think one of my biggest mistakes was not creating a realistic budget. I wanted to get where I wanted to be as fast as possible, but I didn’t take into account how unsustainable that would be. After taking that year to get out of debt, I thought I could keep up with this bare bones budget to save money faster but I started to get really tired of what I perceived as constant deprivation.

As a result I found that I was rebelling against myself and my goals, and that was a really strange feeling. It actually took me a few months to realize what was actually realistic in the long term. And even today, I really have to question the budgets I make for myself and the goals I’m settings, just to make sure they satisfy the saver in me, but it also lets me live the kind of lifestyle that I want.

Q: Now, in “givemebackmyfivebucks,” you discuss your financial goals, your successes and failures. You put up weekly and monthly budgets. That’s really baring your soul. What reaction have you had from family and friends and your readers?
A: Well, for the first few years I started my blog, I was actually anonymous, so I felt safe. I was scared of what my family and friends would say about how much I was sharing on the internet, but once I actually started writing for The Toronto Star’s website moneyville.ca, I realized that speaking frankly and opening myself up, was really empowering.

Q: In 2012, you moved to a very small apartment in Stuttgart and worked remote. What were some of the challenges you faced and how did you overcome them?
A: It was really liberating moving to Germany and working for myself. You know, everyone dreams about quitting the 9-to-5 routine and becoming your own boss. I imagined sitting in European cafes all day long people watching and writing for clients. While I did that almost every day, because of the time zone difference, I also had to work a lot of late nights since my clients were all in North America. It was a really big adjustment for me.

But I think the biggest challenge was the isolation. Not only was I in a country where everyone spoke a different language, but working for myself. So when I moved back to Vancouver, I went back to a corporate job because I needed that daily interaction with other people.

Q: You love to travel and you manage to travel economically. You write about your experiences on the “frugalwanderer.” What has been your favorite trip to date?
A: Oh, my favorite trip was the one I took in November 2013 to Morocco. It was a mix of the people and the landscape and the food that made it so exciting. And I never thought I’d get the opportunity to travel to Africa, sleep under the stars in the Sahara, drink tea in Marrakesh or go hiking in the mountains. It was fantastic. And once I took the time to budget out how much everything costs and how I could save money on the trip, it quickly became a reality.

Q: How many hits do you typically get when you post a blog?
A: Well, it really varies depending what the content is and whether other websites pick up the blog posts. If it’s just my traffic on a daily basis, you know, it can be anywhere from 2,000 to 5,000 visitors a day. When I get picked up by another website, it can go up to 10,000 visitors a day or higher.

Q: What have some of the most popular blogs been?
A: Surprisingly, over the last seven years, my most popular posts have been about how to upgrade ramen soup to make it taste better and how much you’ll need to save up in order to move out of your parents’ house the first time.

Q: Oh, that’s interesting.
A: Other popular posts have been a comparison of prices at Target Canada to Target USA; what your net worth should be by the time you’re 30; and a post about the myth of having to travel when you’re young.

Q: What have some of the spin-offs from blogging been for you?
A: Having my blog has opened up a lot of doors for me that I never would have thought possible. What started out, essentially as an online diary to help me stay accountable for my goals has turned into this vehicle that I can actually use to make money and help people at the same time.

You know, through blogging, I’ve been offered writing contracts with moneyville.ca, The Toronto Star, Canadian Living, Flare Magazine, Metro News and other publications. I’ve spoken to the media on different topics and I get to partner with really fun companies at the same time. Recently I finished a campaign with H&R Block and I’m a regular Twitter contributor for RBC.

So I think that those kinds of partnerships make blogging fun and make it more interesting. In the future, I hope to continue blogging about my journey towards financial independence. And I really love how my hobby and what I’m passionate about has turned into a part-time job for me

Q: If you had one piece of advice for Canadians trying to get their finances in order, what would it be?
A: Oh wow, just one piece of advice. If you’ve never taken a good look at your finances, my advice would be to create a budget and stick to it. I mean, it’s fun to spend money. So we convince ourselves that it’s okay, because we have a better job around the corner, a bonus that will cover the shortfall, or because we think we deserve it.

But the truth is no matter how much money you make, there’s always going to be something you can’t afford. When I first started budgeting, I saw it as a restriction. It was a way to stop me from having fun. I didn’t understand that it was helping me manage my money, so that I could have even more fun with my life.

And by choosing where my money went and how I spent it, and by living below my means, I was creating a really stress-free lifestyle which I never had before, and a better future. So I think budgeting is the number one thing that I would tell people to do.

Thank you very much Krystal. It was a pleasure talking to you today.

My pleasure. Thank you.

—

This is an edited transcript of the podcast you can listen to by clicking on the graphic under the picture above. If you don’t already follow Give Me Back My Five Bucks and Frugal Wanderer, you can find them here and here. Subscribe to receive blog posts by e:mail as soon as they’re available.