Story after story talks about how X per cent of Canadians don’t have enough savings to pay an unexpected $2,000 bill — or how they live paycheque to paycheque.

So, fine. Maybe we don’t save as much as we’d like. But are there any nations that can make that boast? And if so, why — what’s making them save so well? Save with SPP had a look around to find out.

According to the Statista website, the Swiss are the world’s leading savers, socking away an impressive 23.1 per cent of household income as of 2020. They are followed closely by the Irish (21.6 per cent), the French (21 per cent) and the citizens of tiny Luxembourg (18.1 per cent).

Canada was 12^th on this list.

Our grandfather was born in Basel, Switzerland and was a formidable saver.

Let’s focus, then on the top two, the Swiss and the French.

The Swiss, reports the BBC, are a bit unique in that they still like to use cash.

“In Switzerland, cash remains the dominant payment method. Here, there’s an assumption everyone carries cash, even in an increasingly digital economy. Most don’t get caught out buying a sandwich or paying for a haircut when the card payment machine is out of order,” the article notes. In fact, the broadcaster goes on, 70 per cent of Swiss financial transactions are in cash — 22 per cent are through debit cards, and just five per cent are via credit cards.

The relative lack of credit card use in Switzerland is quite instructive, particularly when contrasted with the record-high levels of credit card debt here in Canada. Less debt to pay down means more money to put in savings, perhaps?

A CNBC report found that in addition to having a cultural tradition of saving, the Swiss franc is a very valuable, stable currency. The average income in Switzerland is quite high, so people spend a smaller proportion of their overall earnings on “food and accommodation” versus folks in other countries, the article adds. Inflation, though high for Switzerland, was much lower than in other European countries, the article adds.

OK — the Swiss spend cash, even commonly using 1,000-franc banknotes, they are fairly wealthy, and so spend less of their overall income on necessities like food and shelter. That leaves more money for savings.

What about the French? In France, reports the Tilly Money blog, citizens enjoy “one of Europe’s most generous state welfare systems,” including “substantial unemployment benefits, a world-class healthcare system” and “one of the youngest retirement ages in Europe.” As we’ve read, there are still protests going on about changing the state retirement age to 64 from 62.

“The majority of the population put their savings into a financial investment ‘Livret A’ account, where the interest rate is low and fixed by the State but is also guaranteed by the State and tax free. Their second love is, of course, ‘investir dans la pierre’ – or what we would call investing in bricks and mortar,” the article continues.

According to the bank BNP Paribas, “middle-aged households (30 to 59 year olds) save more than younger and older generations.”

So for France, then, you not only have generous state benefits for retirement, unemployment and health, but a government-backed savings account and a focus on investing in real estate.

So, some interesting traits emerge her for our friends in Switzerland and France who are high savers. They like to use cash and not credit cards. They tend to have higher incomes and thus are less impacted by rising food and shelter prices. Government benefits are generous, and in France at least, you can save in a fund where your rate of return in guaranteed by the government. Both the French and Swiss seem to have a cultural tradition of saving.

It’s interesting to see how the other half lives — and saves!

Here in Canada, government retirement benefits are pretty basic. If you want a little more money to help fund your retirement lifestyle, personal savings is the way to go. A great tool to help you boost your retirement savings is the Saskatchewan Pension Plan. SPP will take your contributions and invest them in a pooled, professionally managed fund, run at a very low cost. When it’s time to start your retired life, SPP will present you with a variety of income options for your savings, including the possibility of a lifetime monthly annuity! Check out SPP today!

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By Sheryl Smolkin

If you haven’t seriously thought about the possible impact of health care costs on your retirement budget and lifestyle, you may find recent research from the University of British Columbia as disturbing as I did.

The study reveals that one in 12 Canadians age 55 and older skipped prescriptions due to cost in 2014, the second-highest rate among comparable countries. The ten years before provincial drug plans kick in for most seniors at age 65 is the period of time when the highest percentage of older people can’t afford the drugs they need to stay healthy.

In order to “stretch” their drugs some people skip doses, while others may split pills or try to manage their conditions without drugs. “When patients stop filling their prescriptions, their conditions get worse and they often end up in hospital requiring more care which in the long run costs us more money,” says Steve Morgan, senior author of the study and professor in UBC’s school of population and public health.

The research draws on the 2014 Commonwealth Fund International Health Policy Survey of Older Adults (persons aged 55 years or older) in 11 high-income countries: Australia, Canada, France, Germany, the Netherlands, New Zealand, Norway, Sweden, Switzerland, the United Kingdom, and the United States. Among countries with publicly-funded health-care systems, Canada is the only one without coverage for prescription medications.

In an analysis of survey responses from all 11 countries, the researchers found that Canada had the second-highest prevalence of skipped prescriptions due to cost, at
8.3%.  Access was worse only in the United States, where 16.8% of respondents reported such financial barriers to filling prescriptions. In contrast, fewer than 4% of the populations in most other comparable countries reported skipping prescriptions due to cost.

In a separate analysis of the Canadian survey responses, researchers found that Canadians aged 55 to 64 face the greatest barriers to filling their prescriptions. One in eight Canadians aged 55 to 64 reported that they did not fill prescriptions because of cost in 2014, in comparison to one in 20 Canadians aged 65 and older – who, by way of age, qualify for comprehensive public drug coverage in many provinces.

Morgan points to gaps in drug coverage available to Canadians as a problem. Unlike other countries with universal public health care, public drug plans in Canada generally only cover select groups, such as social assistance recipients and people over age 65. Other Canadians may receive drug coverage from private insurance through their workplaces or none at all.

The survey found that Canadians who did not have insurance were twice as likely to report not filling prescriptions because of cost. It also showed that low-income Canadians were three times more likely to report financial barriers to filling prescription medicines than high-income respondents.

Morgan said the 2014 findings were consistent with studies that date back a decade, indicating affordability of prescription drugs is still a public health issue in Canada.

“Our problem hasn’t gone away. Financial barriers to prescription drugs are still high, both in absolute terms and relative to our peer countries.”

The research was described in two studies published in BMJ Open and CMAJ Open.