Quote:
Originally Posted by CliffFletcher
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.
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2k extra per month is 600k in retirement savings. Thats certainly in the 1 million dollar ball park.
You do hit the nail on the head Cars, furniture, Vacations and Home Improvements certainly interfere with the ability of people to save for retirements. And I’d argue that because of hedonistic adaptation you can spend wildly varying amounts on those 3 items with the same level of happiness derived from them.