Experts say retirement planning should start in one’s 20s

Ah, the joys of being in one’s twenties. You’re young, you’re healthy, you’re newly educated and you’re ready to make your way in the world of employment.

And, according to the experts, you should have your retirement planning well underway!

According to The Motley Fool blog via Yahoo!, “the saddest tale you can hear from baby boomers is the regret of having not prepared early for retirement.”

Not saving enough while young is something your older you will experience – in a negative way – later in life, the blog advises. “Many baby boomers found out belatedly that their nest eggs weren’t enough to sustain a retirement lifestyle,” the blog warns.

Without an early head start on saving, the Motley Fool warns, “you might end up with less than half of the money you’d need after retiring for good. The best move is to invest in income-generating assets or stocks to start the ball rolling.”

What stocks should a young retirement saver invest in? According to the blog, “Bank of Montreal (BMO) should be on the top of your list,” as it has been paying out good dividends since 1829. Other good dividend-payers recommended by the investing blog include Canadian Utilities (CU) and CIBC bank.

“The younger generation should take the advice of baby boomers seriously: start saving early for retirement. Apart from not knowing how long you’ll live, you can’t get back lost time. Many baby boomers started saving too late, yet expected to enjoy the same lifestyle as they did before retirement,” the blog warns.

So the takeaway here is, start early, and pick something that has a history of growth and dividend payments.

The bigger question is always this – how much is enough to save?

A recent blog by Rob Carrick of the Globe and Mail mentions some handy calculators that can help you figure out what your nest egg should be.

Carrick says that while seeing a financial adviser is always recommended for goal-setting, the calculators can help. Three he mentions include The Personal Enhanced Retirement Calculator, designed by actuary and financial author Fred Vettese; The Retirement Cash Flow Calculator from the Get Smarter About Money blog; and The Canadian Retirement Income Calculator from the federal government.

You’ll find any retirement calculator will deliver what looks like a huge and unobtainable savings number. However, if you start early, you’ll have the benefit of time on your side. Even a small annual savings amount will grow substantially if it has 30 or 40 years of growth runway before landing at the airport of retirement. For sure, start young. Join any retirement program you can at your work, but also save on your own. If you’re not ready to start making trades, a great option is membership in the Saskatchewan Pension Plan. You get the benefit of professional investing at a very low price, and that expertise will grow your savings over time. When it’s time to turn savings into income, SPP is unique in the fact that it offers an in-plan way to deliver your savings via a monthly pay lifetime annuity. And there are a number of different types of annuities to choose from. 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, classic rock, and darts. You can follow him on Twitter – his handle is @AveryKerr22

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

Retirement may be good for your health
While most of us focus on the financial side of retirement – the question of saving enough for the “golden years” and then making it last to the finish line – there is arguably an even more important factor to take into account. That factor is the relationship between retirement and good health.

A recent University of Sydney (Australia) study found that retirees “become more active, sleep better, and reduce their sitting time” once they have left the workplace behind.

The retirees followed were also less likely to smoke, the study found.

An earlier U.S. study found “the retirement effect on health is beneficial and significant,” reports CTV News. This study linked a reduction of stress (no more work) to a reduction in smoking, and more time for exercise.

The National Bureau of Economic Research found “positive long-run effects both in subjective well-being, or happiness, and in the objective health measures,” reports The Fiscal Times via Yahoo!

“Retirement is a good time in life that many people look forward to,” states Aspen Gorry, one of the study’s authors, in The Fiscal Times article.

Less stress, more time to take care of your health, better sleep – you can’t put a dollar value on that. So when planning for retirement, take into account the fact that getting out of the workforce may be the best thing you’ve ever done for your health.

Changing things up in retirement
An article in US News and World Report lists “10 Retirement Lifestyles Worth Trying.” And what are some of them?

Going back to school, the article notes, is so popular south of the border that “a growing number of colleges are building retirement communities on or near campus.”

Retirement also lets you stay at home, to “experience what the days feel like when you don’t have to hurry,” the article points out. Other ideas include volunteering, starting a second career, or enjoying the thrill of become a devoted frugality buff.

What you do with retirement is of course up to you. Having a good retirement savings plan is an important underpinning for those years of freedom. If you don’t have a plan at work or on your own, the Saskatchewan Pension Plan can help.

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

 

By Sheryl Smolkin

One of the ways many of us try to stretch our dollars further is by taking advantage of rewards programs ranging from cash back or travel rewards on credit cards to points cards from your local supermarket or drug store.

I have been a big fan of travel rewards ever since I did a distance Master of Law degree in the UK in the mid 1990s that required me to travel to Europe half a dozen times in two years. But I have a collection of other loyalty cards in my wallet including a punch card from a bakery that rewards me with a free dozen bagels every time I’ve purchased ten dozen in total.

A September 2015 report from Montreal-based Aimia Inc., which operates Aeroplan and other customer-loyalty programs says of the 89% of Canadians enrolled in a loyalty program, 59% have done so with supermarkets, 22% have signed up with banks and 18% with restaurants.

On itbusiness.ca Brian Jackson reported in March 2015 on a research study conducted by Yahoo Inc. The average Canadian has four loyalty program cards in their wallets, the study found. More than half of consumers say they frequently use those cards to accumulate points and miles. Two-thirds of them go online to calculate the value of the loyalty program, and six out of 10 choose loyalty programs that come free-of-charge.

On Robb Engen’s say-so, I replaced my CIBC Aeroplan VISA with a Capital One Aspire Travel World MasterCard about 18 months ago. This week I was delighted to get an email from the company describing how their program has been enhanced by elimination of the the tiered redemption program and the introduction of partial redemptions. Read all about the changes on RewardsCardsCanada and why with these changes, Capital One has further cemented its status as the best value rewards card for everyday travelers.

If unlike your jet setting neighbours, you travel infrequently, you may be interested in the blog on familyfuncanada.com about the best loyalty programs for infrequent travelers. Helen Early says Airmiles can bring you plenty of rewards. According to Early, the best thing about the Airmiles program is that you can earn points almost anywhere, through activities that you probably already do. She also notes that hotel chains like Faimont, Starwood, Best Western and Hilton offer great deals and discounts for even the lowest tier of members.

Krystal Yee wrote a sponsored post on Give Me Back My Five Bucks about how you can be rewarded for everyday purchases when using your debit card. She reports that while there are very few debit rewards in Canada, Scotiabank offers three.

• The SCENE Debit Card allows you to earn accelerated points through Cineplex online and in person (5x based on purchases) as well as at a few other select locations including Sport Chek, Milestones and East Side Mario’s. You will also earn one point for every five dollars spent in other locations.
• With the Moneyback Debit Card you can earn 1% on every purchase you make – up to a maximum of $300 per year. Those that open up an account before October 31st will earn double the rewards – $600 – through to that day.
• With every purchase made on a ScotiaHockey NHL® debit card, you will be entered to win grand prizes including four 2016 NHL® All-Star Game packages, four 2016 Stanley Cup® Final packages, four 2016 Molson Canadian NHL Face-Off™ packages as well as 45 monthly prizes.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.