Saskatchewan plan celebrates 20 years

Pension plan averages annual return of 9.5 per cent

With a newly announced estimated return rate of 10 per cent for 2005, the Saskatchewan Pension Plan continues to prove its stability and performance 20 years after its inception.

Since 1986, the Saskatchewan Pension Plan has provided an easy, flexible means of retirement savings for anyone between the ages of 18 and 69.

"The Saskatchewan Pension Plan provides tremendous benefit to the residents of this province," said Saskatchewan Pension Plan general manager Katherine Strutt. "The plan has never experienced a negative return, and has been a strong performer every year — the average annual return rate since inception is 9.5 per cent.”

The plan was created by the provincial government as a savings vehicle for individuals with little or no access to workplace pensions or other retirement savings arrangements. It consists of a balanced fund for investment and an annuity fund for retirees. It ranks among Canada's top 50 defined contribution pension plans.

"The Saskatchewan Pension Plan is a long-term, winning investment option," Strutt said. "It's a reliable and easy way to invest your money for a competitive return."

Based on a conservative return rate of eight per cent, contributions of just $25 per month over 40 years ($12,000 total investment) could grow to more than $80,825 in time for retirement.

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