Tips provide ways you can have a happy and financially secure retirement

What sorts of things do we need to think about to have a happy retirement – fun and financially secure?

Save with SPP decided to take a look around the Web to see what sort of retirement tips there are for those of us who are still working away.

The Wellington Advertiser in Ontario offers up several tips.

First, the newspaper suggests, you need to “get your finances in order.” As you prepare to retire you need to “plan out your finances ahead of time… people heading towards retirement should look into paying off any outstanding debts, and organizing their money, so they know what to expect come retirement and how much they will be living on.”

The Advertiser’s second tip is to “take it slow.”

“Going from working full time to not working at all can be a harsh adjustment for some, slowly working into retirement is a great way to smooth out the transition. Those heading towards retirement should consider easing off their workload over the course of several years or months,” the newspaper notes.

The article’s other tips include being active, and “getting out” as well. “It’s important to stay mentally active as well, volunteering, clubs, committees and community events are all great ways to stay connected in the community.” That involvement can ease any feelings of loneliness you may have post-work, the article concludes.

The Kiplinger website offers up a few more ideas.

“Happy retirees find a clear sense of purpose,” the site explains. Sometimes, the article continues, golf, strolling the beach and reading don’t provide enough “purpose or meaning.” Many retirees go back to the workforce, not only for the money but for the social connections and sense of purpose, the article adds. Others like to volunteer, which “keeps the brain healthy and active” and prevents “loneliness and isolation.”

The article notes that happier retirees “never stop learning.”

“Experts believe that ongoing education and learning new things can help keep you mentally sharp. Plus, exercising your brain may help prevent cognitive decline and reduce the risk of dementia,” the article reports.

Finally, the folks at Kiplinger extoll the virtues of having a “furry friend” in retirement.

“It turns out that Fido can provide more benefits to you than grabbing the newspaper. Older dog owners who walked their dogs at least once a day got 20 per cent more physical activity than people without dogs, and spent 30 fewer minutes a day being sedentary, on average, according to a study published in The Journal of Epidemiology and Community Health. Research has also indicated that dogs help soothe those suffering from cognitive decline, and the physical and mental health benefits of owning a dog can boost the longevity of the owner.

At Forbes Advisor, the importance of having money in retirement is raised.

“Strive to save 10 per cent (or more) of your gross income in a tax-advantaged retirement account,” the article suggests. In Canada, this would include things like a registered retirement savings plan, a company pension plan, a Tax Free Savings Account, and so on.

The article also suggests you “spend smarter” in retirement. Huh?

“Cost and value are not the same thing. For example, if two couples took the same trip of a lifetime, stayed in the same level hotel, and booked the same class of airfare, it would be fair to say that they got the same value from the trip. But if one couple paid full price and the other couple booked at a discounted rate, like my mom always does when she travels, there would be an obvious difference between the cost for each couple. I will give my mom credit; she is the queen of stretching a dollar,” author David Rae writes.

So let’s recap. You’ll want to plan ahead for retirement and set up a budget to handle the fact you will probably be living on less income. The more you save before retirement, the closer your post-work income will be to what you are making now.

Ease into retirement, rather than jumping headlong. Stay active, get out and do things with new people. Have a sense of purpose – maybe volunteer or join a group. Keep learning. Spend smart.

If you don’t have a retirement program through work, a great resource that may be of interest is the Saskatchewan Pension Plan. Join the more than 30,000 Canadians who are members of this voluntary defined contribution pension plan that not only helps you save but can help turn those savings into retirement income.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

You’re enjoying your retirement party, your last paycheque is about to be deposited, and soon you’ll be cracking into your retirement savings.

All smooth sailing? Well, it can be if retirees are aware — in advance — of some of the bumps in the road ahead. Save with SPP took a look at the most common risks faced by those of us who are retired.

If your retirement savings are invested and you plan to live off the proceeds, investment risk and inflation should be near the top of your list, reports the Financial Post.

“Turbulent markets, soaring inflation and a higher cost of living are all impacting older workers that are transitioning to full or part-time retirement,” Mercer Canada’s F. Hubert Tremblay tells the Post.

The Kiplinger website adds a few more. Will you outlive your savings, the article asks? That’s known as “portfolio failure risk,” and can happen even if you have a set withdrawal rate, such as taking out no more than four per cent of your savings each year.

“Another withdrawal method is guessing how long you’ll live and dividing your savings by 20 to 30 years—but what happens if you live 31 years,” the article asks.

They also cite “unexpected financial responsibility risk” as being a possible challenge — this would involve having to help out adult children or ageing parents — or both.

The Wealth of Geeks blog offers up a few more risks, including a surprising one — frustration.

“Retirees are frustrated with their retirement,” the article notes. “On average, retirees rate their satisfaction in retirement as 7.0 out of 10 in 2022, compared to 7.4 in 2020. Similarly, retirees ranked their alignment of life in retirement with their prior expectations at an average of 6.4 in 2022, down from 6.8 in 2020,” the article continues.

A lot of the frustration is linked to inflation — the fact that everything costs more than it did even a year ago, the article continues. Having less to spend than expected while on a fixed income becomes a source of frustration, the article explains.

Forbes magazine sees three chief risks for retirees. The first two, inflation and investment risk, we’ve covered — but the third is possibly even more important — longevity risk.

“While there are a lot of benefits to living a long time, longevity increases financial risk. You need to pay the living expenses for all those extra years. Also, your annual expenses might increase, because people generally need more medical and long-term care as they age,” the Forbes article explains.

Save with SPP has been embedded in the camp of retirement for more than eight years now, and we can add another risk to the list — carrying debt into retirement.

According to the Canadian Press, via CP24, Canadians have $1.83 in debt for every dollar they earn.

While that’s bad, having debt when retired (and living on less income) is worse. Trying to reduce debt prior to retirement is, in many people’s opinion, almost as important as retirement savings.

It’s a daunting list of potential pitfalls. The best way to arm yourself against future risks is to have retirement savings and thus, future retirement income.

If you have a pension or retirement system through work, you are ahead of the curve. If you don’t, consider the Saskatchewan Pension Plan. SPP is a pension plan any Canadian with registered retirement savings plan (RRSP) room can join. SPP will take your contributions, as well as transfers from other RRSPs, and will grow them efficiently in a pooled fund offering low investment costs. When it’s time to turn savings into retirement income, SPP has several options for you, including lifetime annuities which guarantee you’ll never run out of income. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

There’s no place like home for retirement, Canucks say

The pandemic seems to have changed a few people’s minds about their retirement plans.

According to a recent article in Investment Executive magazine, the former dream of retiring to warmer climes may now have been replaced with the idea of a made-in-Canada retirement.

The article, citing recent research done for IG, found that “half of respondents said being closer to family and remaining in Canada is now a priority.”

The survey found most of us – two-thirds – also would prefer to live out our lives in our own homes rather than in “a retirement facility,” the article notes.

“It’s understandable that the events of the past year have caused many Canadians to pause and re-think what their futures will look like, including their plans for retirement,” states IG’s Damon Murchison in the article.

Other financial concerns Canadians raised in the piece including emergency funds, healthcare coverage, and the amount of savings they’ll need in retirement.

So, if having more money is the answer to most of these concerns, how do we get there?

A recent article from Kiplinger, while intended for a U.S. audience, offers up some good advice on what not to do when you’re saving for post-work life.

The article suggests that many of us, particularly when young, take too many risks with our investments, “because time is on your side.”

Once you have reached middle age, your investment strategy should change from accumulation to “preservation and distribution,” the article advises. “This is generally where your financial strategy should become more conservative,” Kiplinger advises.

The article mentions the “Rule of 100,” namely, that your current age should be the percentage of your overall investments that should not be at risk. “Whatever you do, don’t consider a Las Vegas `all-in’ scenario as you edge closer to retirement,” the article warns.

Other tips include tailoring your investments to your personal needs, being aware of the impact of fees, and not listening to the neighbours when it comes to financial advice.

“The neighbours’ advice may be well-intentioned, but it’s likely misguided or possibly self-serving. Swap barbecue tips and stories about your kids—but never talk money,” the article concludes.

Saving for retirement, like many other things we don’t always want to do, is good for you. While times are tough, they will get better as the pandemic gets under control and fades from significance. But there are some good lessons the pandemic can teach us about having an emergency fund ready, ensuring our retirement savings continue (if possible) so we don’t have to work even longer, and seeing the true value of in-person time with our family and loved ones again. All good.

If you’re not really sure about investing, but do want to save for retirement, have a look at the Saskatchewan Pension Plan. You can leave the heavy lifting of investment decisions to SPP. Despite the Tech Wreck, the financial crisis of 2008-9, and the craziness of the pandemic and its impact on financial markets, the SPP has averaged an impressive eight per cent rate of return since its inception 35 years ago. That’s quite a track record of delivering retirement security!

Join the Wealthcare Revolution – follow SPP on Facebook!

If you Google “retirement + plan” you will find lots and lots of information about stashing some of your cash in a safe investment haven so you can crack into it in retirement.

But there’s more to retirement than just the money side of things (even though that aspect is very important). Save with SPP took a look around to see how people go about setting goals for retirement – making use of the newfound time they now have, in abundance.

According to the Kiplinger blog, just as you may have created a financial plan for retirement, you also need to make a plan to live out your dreams, and to “make the next 20 or 30 years purposeful.” 

Sometimes, work slots us into roles that aren’t really aligned with what we think we are about, the blog explains.  “Many times, work is what you do and not so much who you are,” states Catherine Frank of the Osher Lifelong Learning Institute in North Carolina. “Retirement is an opportunity to create a life that reflects more closely who you are,” she tells the Kiplinger blog.

The blog quotes one retiree, retired professor Ronald Mannheimer, who decided to work on his fitness, and volunteer, but found he still had gaps in his day. “Keep open time to explore, to perhaps research what you may want to do next,” he tells Kiplinger “But you should be able to look forward to a calendar of activities.”

OK, so we want to spend time doing things that we have always wanted to do. What if we can’t think of any?

There’s a helpful list at Financial Advisor magazine. They suggest becoming a teacher’s aide, working in retail, working as a tour guide, being a driver, volunteering (or working for a non-profit), and athletics, among other ideas.

There are more ideas over at Marketwatch, including “taking up a sport,” getting a hobby, starting a business, and (of course), travel.

The Retirement Field Guide reminds us what not to do – don’t waste time “watching too much TV,” while “having an empty calendar,” or you will find you’ve become a hermit. They offer similar ideas for retirement activities, including learning new skills (say, music), being a mentor, joining or starting a club, and many more.

It’s very, very hard to visualize retirement while you are still working. Very hard.  It’s not like being on vacation. If anything, it’s like every day is the weekend. The advice from the various bloggers cited here is sound – take some time now, while you are working, to think about what you want to do with your hard-earned time. Talk to folks who are already over the wall and enjoying retirement, and you’ll be surprised how busy they have become.

Even doing only things you like often requires a bit of cash. A tremendous resource for creating retirement income is the Saskatchewan Pension Plan. The SPP is pretty unique – it’s an open defined contribution pension plan. You can contribute up to $6,300 a year towards your retirement, and SPP will grow your savings (with professional investing at a low cost) until that wonderful day when you move into fitness and hobbies full time. Then, you can collect those grown-up savings in the form of a monthly, lifetime pension cheque. Check them out 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 and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22