Craft your
retirement mix
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Planning for retirement can feel like navigating a maze. There are so many possible paths – different programs, investment types and ways to save. How do you know which ones are right for you?
Let’s shed some light on your options for a clearer picture of what mix will help you build the retirement you deserve.
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Federal Government Retirement Programs
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Programs like OAS and CPP are a common part of the retirement mix for many Canadians. For most, however, these alone won’t provide enough income to retire comfortably. As a result, the government also incentivizes self-saving through tax benefits on things like RRSPs and TFSAs.
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CPP (Canadian Pension Plan)
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A government-run pension you pay into while working, CPP pays you monthly income when you retire. It’s meant to replace part of your earnings and grows based on how much and how long you contribute.
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This is a monthly payment from the government for most Canadians 65 and older, whether they worked or not. It’s intended to give everyone some basic income in retirement.
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GIS (Guaranteed Income Supplement)
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If you’re a low-income senior receiving OAS, the GIS adds extra monthly support to help cover essential living costs. It’s aimed at preventing seniors from falling below a basic standard of living.
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Having contributions deducted right at the source, before you have a chance to spend it, can be one of the easiest ways to save consistently. Workplace pensions allow you to do just that, taking a portion of your income and putting it directly into retirement savings.
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Guaranteed monthly income in retirement based on your salary and years of service. Your employer handles the investing and risk, so you get predictable payouts for life.
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Defined Contribution Plans
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You and your employer contribute money to an investment account, and your retirement income depends on how those investments perform. It’s more flexible, but any risk belongs to you.
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Like a regular RRSP, but through your employer. Contributions come straight off your paycheque (often with employer matching), so you can enjoy immediate tax savings while growing your retirement long-term.
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Personal Retirement Savings
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Even with government and employer programs, investing on your own provides complete control over the growth of your nest egg. This generally involves developing some personal financial knowledge, or relying on a financial advisor to maximize your efforts.
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RRSP (Registered Retirement Savings Plan)
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A tax-deferred account that helps you save for retirement. Contributions reduce your taxable income now, and you pay tax later when you withdraw the money in retirement.
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TFSA (Tax-Free Savings Account)
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A flexible savings account where your investments grow tax-free. There’s no tax break when you put money in, but you don’t pay tax while accumulating or when you take it out, making it great for both short- and long-term goals.
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Fixed Income Investments/Real Estate
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Fixed income options (like bonds or guaranteed income funds) provide steady, predictable returns, while real estate (such as rental properties) can offer both regular income and long-term growth potential. Both require upfront investment and careful planning.
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Saskatchewan Pension Plan (SPP)
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Where does SPP fit into all of this? We strive to take the best facets of the above and combine them into a reliable, easy to access retirement savings program.
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SPP was designed on the principle that all Canadians should have access to a pension. If you’re between the ages of 18 and 71 with available RRSP room, you can contribute. No other qualifications required.
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Flexible Sign Up and Contributions
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Whether it’s administered through your workplace or you sign up on your own, SPP provides flexible ways for you to save. You can contribute directly through payroll withdrawals, set up automatic contributions on your own, contribute via credit card or bank account, or even transfer in from unlocked registered savings.
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Want consistent monthly payments for life? Choose to collect with an Annuity. Prefer to have complete control over how much you withdraw and when? Variable Benefit is for you. Rather move your money elsewhere? You can do that, too. SPP gives you control over how you’ll collect your savings in retirement.
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* You can begin collecting between the ages of 55 and 71.
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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. The choice is yours!
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Transfer funds in from unlocked registered savings to help all of your investments benefit from the advantages of SPP.
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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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** Past performance does not guarantee future results.
† Management Expense Ratio (MER) targeted at less than 1%.
‡ Must have available RRSP room. Funds locked in until age 55.
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1 (800) 667 7153
info@saskpension.com
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