Quote:
Originally Posted by bizaro86
One of the reasons for skepticism here is that there is an entire industry around retirement savings. An industry where professionals both provide advice AND have higher earnings when their clients save more. All those freedom 55 ads weren't because life insurance companies deeply care about people, they were because they want you to save more into their products so they earn more fees.
The median income for a senior in Canada is $30k, or $60k for a couple. 40k is tight but possible, especially with a paid off house. Lots of people live on less. That's not what I'm planning for, because I like both nice things and a buffer.
But I think many people don't even try to fund retirement because they hear conversations like the one upthread about, "is 4 million really enough" and decide the whole thing is impossible.
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And that is valid - there is certainly some reason for skepticism, and there are certainly some advisors who put their own interests first (though I think a big part of the disconnect is that advisors work mostly with people who have significant savings, so that can skew their view of the landscape).
The flip side is that there are also a lot of people providing 'advice' who shouldn't be. The reason there is an entire industry serving this need is because there IS a need. And it is a lot more complex than simple rules of thumb. It is also very important to get
good advice, to do it right. and to err on the upside. Because the alternative, not having enough, is a pretty awful way to spend your retirement years.
When you've gone through the exercise with hundreds of families, you see trends, you see mistakes, and you learn where many misconceptions lie. One of the first things you notice is that the vast majority of people under-estimate their requirements. That isn't self-serving, that's a fact.
So while I understand your skepticism, I find all the free, non-professional advice to be a much bigger problem.