Many people think of retirement planning as a savings exercise: put money away, let it grow, and hope it’s enough. But with some planning and a change in how you see your pension, your CSS Pension Plan can be used in a far more powerful way. It can be used to create a retirement income that will help you live the retirement you have envisioned.

While the Plan helps you build savings throughout your career, its real purpose is to convert those savings into income you can rely on in retirement.

Your CSS Pension Plan is not just a place to save. It is a system designed to create monthly income that supports you for the rest of your life or for as long as you need it.

Here’s what that means for you.

1. You are building income, not a lump sum

Most workplace pension plans in Canada fall into one of three categories: defined contribution (DC), defined benefit (DB) or a target benefit (TB).

Your CSS Pension Plan is a DC plan. In a DC plan, the retirement income you build depends on three main factors:

• The contributions you and your employer make throughout your career

• How your investments perform over time

• The choices you make with respect to your pension account throughout your career and into retirement

It’s easy to think of your pension like a bank account. But inside a pension plan, that money does more than sit and grow.

Your defined contributions to CSS are:

• Diversified for long‑term growth

• Structured so they can be turned into monthly income at retirement

• Professionally invested

One key feature of a DC plan that will impact your future self’s income is how you choose to invest your pension contributions.

Each investment option comes with its own level of risk and potential return, so your decisions should align with your long‑term goals and your comfort with market ups and downs.

Ultimately, your pension becomes one of the building blocks of your future paycheques - providing the income you’ll rely on to pay your bills and support your lifestyle once you stop working. That’s the core difference between a pension plan and ordinary savings. The goal isn’t just to grow a balance; it’s to create dependable, lasting retirement income.

2. At retirement, CSS converts your savings into regular payments

When you retire, you have multiple ways to turn your CSS account into retirement income. If you decide to remain a member of CSS into retirement, you have three in-plan options to choose from. These include:

• Lifetime monthly pensions

• Retirement income that continues for the rest of your life (and possibly a survivor benefit for your spouse).

• Your savings are converted into a monthly pension that never runs out - no matter how long you live.

• This option removes longevity risk (i.e. the risk you’ll outlive your retirement income) entirely.

• Variable Benefit (VB) payments

• A flexible income stream drawn from your CSS account.

• You choose how much income you receive each year (subject to legislated minimums and maximums), and the remaining balance stays invested.

• This option gives you control and adaptability.

• CSS pension combination

• You can allocate some of your pension funds to the lifetime monthly pension and some to VB payments.

• This option gives you the security of a lifetime monthly pension, plus control and flexibility.

The above options are designed to support a steady income rather than one‑time withdrawals. Choosing between them depends on what kind of lifestyle you want in retirement. It can help to compare your current spending to what you expect later on - for example:

• Reduced work‑related expenses like commuting and clothing

• Shifting disposable income needs

• New priorities such as travel, hobbies, volunteering or health‑related costs

You can also choose to set up retirement income payments through a credit union or bank if that better fits your financial plan.

3. Income creates confidence - savings create stress

Planning for retirement can feel overwhelming, especially when trying to imagine life without a working income.

Retirement research consistently shows the same pattern:

• People who rely mostly on lump‑sum savings often fear spending too much. They worry about running out of money and tend to underspend.

• People who receive monthly pension income feel more secure. They spend with confidence because their income is predictable.

This is one of the biggest advantages of having access to a workplace pension plan: you’re not just saving – you’re building future cash flow.

While your pension will become a regular source of income for you in retirement, preparation is still key to reducing financial stress. The Financial Services Regulatory Authority of Ontario (FSRA) recommends asking yourself these questions as you begin to map out your plan:

• At what age do you hope to retire?

• What kind of lifestyle or hobbies will you want to maintain?

• Will you travel or relocate?

• Do you plan to work part-time after retirement?

• What debts might still need to be paid off?

• Will you have other sources of financial support (like a spouse’s pension or personal investments)?

• Where do you plan to live? Will you downsize or stay in your current home?

You can also explore helpful tools like this Retirement Checklist, which can help you clarify your goals and identify areas where you may need to adjust your savings or investments.

4. You don’t have to manage retirement income alone

With RRSPs or personal savings, you’re responsible for:

• Deciding how much to withdraw each year

• Managing your investments

• Protecting against market downturns

• Making sure your money lasts as long as you do

A pension plan like CSS gives you structure, support and tools to help carry some of the weight of income planning – you don’t have to shoulder it alone.

We can help you create a retirement plan that includes all your sources of retirement income - one of the best ways to ensure financial stability and minimize surprises later.

CSS offers both online planning tools and human-connected support:

Online planning

• myCSSPEN Compass® (access through myCSSPEN) - A retirement income planning tool to help estimate how much income you may need to support your lifestyle.

Human-connected support

• One-on-one appointments – Our Advisors are here should you prefer speaking with a human being about the income you might need to support your spending in retirement. Contact us to connect to an Advisor over the phone, virtually or in-person at our Saskatoon office.

 The Plan’s true value is income security

A pension plan isn’t just a savings vehicle. It’s an income system designed to support your life after work.

The CSS Pension Plan gives you:

• Stable monthly income through lifetime pensions, VB payments or a combination of both

• Control and flexibility where you want it, including flexible investment choices based on your risk tolerance

• Lasting security, ensuring you’re supported throughout your retirement years

Your pension works quietly in the background throughout your career so that, one day, you’ll receive a steady stream of payments - your retirement paycheque.

The bottom line

Your pension is not a savings account you might use someday.

It is an income engine designed to pay you throughout retirement.

Understanding that shift – from savings to income – is the key to making the most of your pension.