Plan your way to the perfect retirement
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Early in your savings journey, retirement can seem like a distant dream. Without a sense of immediacy, it can be easy to put off making saving a priority. Let’s explore a few tips to enhance how you save (and help you figure out how much you’ll need to retire the way you want).
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Start saving as early as you can
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It’s never too late to start saving, but the sooner you do, the higher your savings can climb. That’s the beauty of compound interest. You earn interest on your investments, then earn interest on that interest, too. Starting as soon as you’re able gives your savings more time to grow!
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Whether it’s $5 per month or $500, the most important thing is to get started. Even if it feels like a small amount, contribute whatever is financially feasible for you. You’ll not only enjoy increased long-term growth from compound interest, but build a powerful financial habit, too.
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Envision your future often
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Taking some time to truly examine what’s important to you in retirement – activities, location, hobbies and lifestyle – can help you identify how much you should aim to retire with. No doubt some priorities will change over time, so make sure to update your goals regularly, too.
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Budgeting provides a great snapshot of where you’re at (and the cost of your current lifestyle). But keep in mind, the cost of living is constantly rising. To be safe, budget for an average of 2.5-3% inflation long-term, and adjust your contribution plan accordingly.
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Explore more helpful tips to plan for your retirement with this guide from the Government of Canada.
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Building a comfortable retirement isn’t only about the amount you contribute. Starting sooner and being consistent are major factors, too. Small, steady growth over time can lead to big growth (and a more comfortable retirement) long-term.
The image above does a great job of demonstrating what a huge difference starting early can have.
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Make the most of your pension. Take advantage of SPP’s 8% long-term average rate of return*, low MER** and flexible contribution options.
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Set up automatic payments, contribute via credit card, or pay by online banking.† You can also transfer-in from unlocked registered savings. The choice is yours!
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Make sure you’re signed up for MySPP for instant access to your account information, tax slips and to monitor your progress.
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*Average rate of return net of total fund expenses for the Balanced Fund. Past performance does not guarantee future results.
**Management Expense Ratio (MER) targeted at less than 1%.
†Must have available RRSP room. Funds are locked in until age 55.
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1 (800) 667 7153
info@saskpension.com
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