Quote:
Originally Posted by bizaro86
Because I've got to think that most people who get to 64 without saving anything are going to experience a drop in standard of living.
Maybe all generations are the same when it comes to savings, and don't want to do it.
|
I have read that for a lot of poorer people they might actually see an increase in their standard of living when they retire.
A single income couple who made $50000 a year for most of his life can retire at 67 to the following scenario. (OAS and CPP numbers are approximate and off the top of my head.)
Pre retirement take home pay $45332
CPP - $12000 a year
OAS - $8000 a year
Spousal OAS - $8000 a year
Take home pay - $27754
If you assume that they were paying $1000 a month for a mortgage, $200 for gas and maintenance to get to work and $200 for clothes and coffee/food at work that is an after tax savings of $16800 putting their per-retirement cash flow at $28532. If they saved $100 a month for their retirement they will now be better off in retirement than they were when they worked.