Quote:
Originally Posted by Jason14h
Is 1 million really out of touch
If you have 30 years until retirement:
Even with an average annual return of 10%, you'll have to save $481 per month to get to $1 million before you retire. At 6%, you would need to save $1,021 per month.
If that 'out of touch' ? $500-$1000 in savings a month? And thats starting with 0$ at age 35 for an age 65 retirement
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Average annual income for those working full-time in Canada is $54k. Median is under 50k. At that income yes, saving $500 - $1000 a month is not easy. And a lot of people at that income who do save will be putting the money aside for vacations, cars, furniture, emergency funds, home repairs and improvements. To save for those things
and set aside $500 - $1000 a month strictly for retirement requires more discipline and deferred gratification than a lot of people can muster.
The other side of the out of touch comment is how much money people need to retire. Even if you retire at 62 and live to 90 you don’t need anywhere close to a million dollars to live a middle class lifestyle in retirement. OAS and CPP will more than cover the fixed expenses of a typical couple, and $1k - $2k each a month on top of that is plenty for the way most people actually live in retirement.