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Originally Posted by Slava
You're right, you don't NEED 135% but there is a disconnect that I probably didn't explain well enough. When people look towards retirement they think that 70% of their wage will be enough. That makes sense until they suddenly have an extra 8 hours a day to fill....for a lot of people that time is filled with spending money one way or another.
I do agree that some people can make due on $25k per year, but these are not people who saved their whole lives. These are people who relied on the forced savings of CPP, etc. and for one reason or another didn't or weren't able to save more.
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Again, Slava, the reality is that even the top third of retired people do not spend as much money as you're making it seem:
http://www.theglobeandmail.com/globe...rticle1726568/
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In the Russell study, the top third of households aged 65 to 74 had average expenses of about $54,000. Of this they spent about $38,000 on essentials and approximately $16,000 on lifestyle expenditures.
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And that's early in retirement for most people.
People are quick to jump on Relator 1 when he makes ridiculous assertions about mortgages or the housing market, but no one seems to question when financial planners tell us we need more than our current income in order to retire and live well. And I know you're not doing it maliciously, but there is an inherent conflict of interest as a financial planner to tell people they need a certain amount to retire comfortably. Since your compensation is typically tied to how big your book is. (If you're a fee only financial planner I apologize in advance).