Quote:
Originally Posted by Phanuthier
There is certainly options for this generation to save for retiremen, its just the format of how its done is changed.
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Not nearly as many people have matching stock options as used to have fully-funded defined benefit plans. And most people find it much easier to save when the money is deducted before they ever see it. That's human nature.
Nobody has said it's impossible to save for retirement. It's simply harder than it used to be. The average person who has bought a home in Canada in the last 10 years won't have it paid off until they're close to 60. The Boomers typically had their homes paid off before they were 50. That has a huge impact on retirement savings, as Canadians have traditionally used the period after they paid off their mortgage to really plow money into retirement.
Then there's the fact half of Canadians earn under 30K a year. Pretty tough to save for retirement on a salary of 26K. Even people with unskilled jobs used to get a pension. Working at the railyards for CP for 25 years, or at a Ford plant, would leave you with a secure retirement. Now those sorts of jobs have been replaced with a patchwork of service jobs like delivery drivers and Wal-Mart greeters. How's Wal-Mart's pension plan?
Yes, people can still save for retirement. It's just harder. We really are expecting people to show much more foresight and discipline than their parents or grandparents did. And I think we're going to find out just how unrealistic those expectations are.