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Originally Posted by GGG
When you say the vast majority under estimate their requirements do you base that on the actual results of people retiring with to little or peoples projections of the lifestyle they want versus their current savings rates?
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They under-estimate how much they will need in order to sustain the lifestyle they want. And they usually also under-estimate how much they need to save in order to hit their target.
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In terms of poverty rates the elderly have very low rates relative to the rest of Canadians. Now this is obviously because we have a UBI for old people and there is a difference between not living in poverty and living the retirement lifestyle you want. But at least from a low income perspective the elderly have fewer monetary issues than the younger demographics.
https://www150.statcan.gc.ca/t1/tbl1...pid=1110013501
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This is essentially our disconnect. You seem to be making the argument that being above the poverty line is sufficient. That is not what planning is about. Planning is about setting, and achieving goals that will support the lifestyle you want (and can reasonably achieve).
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I think this is interesting. The assumption here is that it’s better to work more today to offset a risk of having less in the future. I think to much emphasis is made on having a bullet proof retirement plan and results in people making more sacrifices today for perceived risk.
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Sorry, but I don't agree with this, and it is a good example of what I was referring to about bad advice. Saving enough does not mean sacrificing the now, for a better retirement. When saving for reasonable goals, most people don't even notice the money they are putting away. It isn't about being draconian, it's about proper evaluation of where you are now and where you want to be - and striking a reasonable balance. If the savings levels that are required to achieve your goals ARE draconian - if they will result in sacrificing too much today, then they are unreasonable goals, and should be adjusted. This is all part of the process that an advisor will walk you through.
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The worst case outcome of being 80 with a paid off house and just CPP OAS and GIS isn’t as bad as outcome as often made out to be.
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Wow. All I can say to that is that, if that is a reasonable outcome for you, then great - your savings requirements will be pretty modest.
But the reason most people seek advice, or at least ask the questions, is that they don't want their retirement to be 'living off CPP'.