Quote:
Originally Posted by Enoch Root
I think the issue of an aging demographic is also being looked at too much from one side only.
Yes, the population of every first world nation is getting much older. And yes, that means many people will stop being taxpayers.
However, they are also the wealthiest generation in history, and they are going to switch from being savers to being spenders of that money. They are also going to ensure that healthcare remains to be a growing industry.
Also, their exodus from the workforce should provide opportunity for jobs for others. In Canada, the aging demographic can be largely offset with immigration.
The taxpayer issue can be addressed by reshaping the tax landscape, with more emphasis on sales tax.
Finally, that wealth will eventually be transferred to others - younger others - effectively releasing it from savings.
I continue to believe that the big concern about the aging baby boomers will be a giant non-event. (by non-event, I mean a non-catastrophe... it will undoubtedly cause a great deal of change)
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The baby boomers are also the most heavily indebted generation in history. I think most people will be very surprised how little they will be getting from inheritance after lifetime healthcare costs, capital gains on real and investment properties, RRSP/RRIF taxation, debt repayment, estate administration, professional fees and in many cases, estate litigation.