Quote:
Originally Posted by Tinordi
http://canadianfinancialdiy.blogspot...er-choice.html
" The principal finding of this study, however – that is, a projected gradual increase in the proportion of future retirees likely to experience a significant decline in their standard of living upon retirement – persists even with differing assumptions for future real wage growth, inflation, rates of return, RPP coverage, and future saving rates." (page 2)
"... the proportion of newly retired individuals unable to replace at least three-quarters of their average pre-retirement consumption from the sources we model is projected to nearly triple over the next 40 years (see Figure 9). If current trends persist, by the 2046-50 period, about 45 percent of workers currently aged between 25 and 30 years would not meet our 75-percent threshold ... " (page 20)
" This decline in potential consumption replacement would be felt across the entire earnings distribution ... " (page 20)
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The most obvious trend I see is people do not outright retire - black/white - anymore.
They just fade out of their employment through time.
They become "consultants" - very common - and benefit the company with their expertise but with less benefits. The tradeoff is they can make good coin while working only a few months of the year, leaving lots of time to winter in Arizona if that's their thing.
Through time, they eventually give up employment altogether and are genuinely retired.
Cowperson