View Single Post
Old 03-11-2022, 12:12 PM   #407
CliffFletcher
Franchise Player
 
Join Date: May 2006
Exp:
Default

Quote:
Originally Posted by DoubleF View Post
Yes, different circumstances for different people, but I don't think the average pre-retirement arguments for lifestyle are in the 3-5x wages range let alone post retirement.
Agreed. It would be odd hearing that some people only need $60k a year to be comfortable in their working years, but some need $240k or $300k to have a decent lifestyle. Like you say, beyond 2-3x median income people recognize we’re no longer talking about average or need.

But for some reason, retirement is presented as a stage in life where expectations and needs will vary even more than in the rest of life. Which seems dubious. It might be true of early retirement, when some people travel a lot, buy new cars, remodel their kitchen, dine out all the time, take up boating, etc. But I’d wager that by their 70s, the monthly spending of average and wealthy seniors actually converges.

Stuff that people over 70 no longer spend money on:

Mortgage
RESPs/RRSPs/TFSAs

Stuff that they probably no longer spend money on:

Home renos (house hunt in older neighbourhoods of the city for evidence)
New furniture (see above)
New cars

Stuff they likely spend less on than when they were 55:

Clothes
Driving
Travel
Restaurants

So even if Canadians have dramatically different (4-5x) spending habits at age 55 or 60, that gap will narrow substantially over the next two decades. Fixed expenses like property tax, utilities, insurance, and groceries don’t vary that much between households. So it’s hard to see how the remainder of discretionary expenses that 70 and 80 somethings have can require massive differences in savings.
__________________
Quote:
Originally Posted by fotze View Post
If this day gets you riled up, you obviously aren't numb to the disappointment yet to be a real fan.

Last edited by CliffFletcher; 03-11-2022 at 12:26 PM.
CliffFletcher is offline   Reply With Quote
The Following User Says Thank You to CliffFletcher For This Useful Post: