Many Canadians in their 30s, 40s not saving enough for retirement

[WilsonFourTwo]

Originally Posted by fotze

Many Canadians in their 30s, 40s not saving enough for retirement: Flaherty

Read more: http://www.calgaryherald.com/Many+Canadians+their+saving+enough+retirement+Flah erty/2876729/story.html#ixzz0l04H4sXC

I've been wondering about this, I know people all over the place that don't have a cent in savings or RRSP's. It is creepy to think about.

The problem is that these people will get a free ride. Look at the current population that did not save sufficiently, they are catered to by the politicians and are allowed to complain to no end without any public backlash.

Are we destined to become Denmark where they are taxed to death to pay for the retirees.

Not to completely ignore the alarm you've (rightfully) struck.....I am MUCH more concerned about the piles of boomers that are already starting to retire without enough money. I know more people 60+ that still have a mortgage than those that don't.

This is gonna sting some you (I'm sorry, I'm not attacking anyone directly) but Boomers and their "I deserve it simply because I want it" attitude have been wreaking havoc on economies for decades. Best part, you taught it to your friggin' kids.....the ones that think they're special because they know how cook eggs or tie shoelaces.

[Traditional_Ale]

Originally Posted by WilsonFourTwo

Not to completely ignore the alarm you've (rightfully) struck.....I am MUCH more concerned about the piles of boomers that are already starting to retire without enough money. I know more people 60+ that still have a mortgage than those that don't.

This is gonna sting some you (I'm sorry, I'm not attacking anyone directly) but Boomers and their "I deserve it simply because I want it" attitude have been wreaking havoc on economies for decades. Best part, you taught it to your friggin' kids.....the ones that think they're special because they know how cook eggs or tie shoelaces.

Quoted for awesomness. Quoted for truth.

[Jason14h]

I saved a ton by switching to Gieco

[Starfishy]

Originally Posted by Sylvanfan

I don't see the point of living like a poverty level lifestyle so I can save enough to retire at 60. I'll take my chances that I have to work till I'm 75 and at least eat three meals a day, and enjoy the odd thing while I'm still able to.

I think this is exactly the point. People are spending today what they intend on earning tomorrow. Many people in generations past would suggest that you do live in modest means while young and enjoy the fruits of that labour when you get older. Put another way, many people would suggest making the money before spending it. This also implies making enough money to put into savings for a suitable retirement.

[mykalberta]

Not really surprising. Home prices have gone up more than 5X and salaries have maybe gone up 2-3X on average.

[IntenseFan]

Thanks to the pillaging that the Baby-Boomer generation has and continues to do to everyone else, I am pessimistic that I will ever be able to retire.

Whatever excess money I make is now earmarked for either them or my daughter's generation.

[IntenseFan]

^ It is not someone else's fault all the time. But in this case:

My generation is not the one who decided it was a good idea to have half the amount of children. That was the Boomers. And now I have to disproportionately bear the financial burden when they retire for stuff like medicare, CPP and a host of other things.

My generation didn't rape and pillage the planet to make millions of dollars and then suddenly grow a green conscience when they started to approach retirement. However, my generation is expected to pay the lion's share of the new "green" way of life, as it's all going to come down during my prime working years.

I could go on, but I'm beginning to sound bitter.

[Phaneuf3]

[Table 5]

Originally Posted by mykalberta

Not really surprising. Home prices have gone up more than 5X and salaries have maybe gone up 2-3X on average.

Not sure if that only applies to Alberta, but honestly, Calgary's looking pretty unattractive to move to these days because of that real estate skew from the last few years. It used to be a great mid sized city that was affordable enough to attain all the luxuries of life with reasonable expectations. Now it's still a great mid-sized city, but with big-city prices...and not a lot of the draws that make a bigger city great (richer cultural experience/atmosphere, better infrastructure, more options of retailers/restaurants). As someone who is considering moving back to Canada, that Alberta Advantage really doesn't seem to be there anymore.

[yads]

Originally Posted by Sylvanfan

For all the flack my generation gets for spending...I really don't know where I can cut my current spending.

I mean I make a decent wage, the only debt I have is 3 more vehicle payments, after which I won't even have that. I don't own a house because the prices in the Okanagan are crazy. I might eat out twice a week, and often thats lunch for my wife and I at a place like Tim's coming to under $15. But seriously I can't come up with the $2000 a month after taxes that I'll require to have enough money saved to comfortable retire 35 years from now for my wife and I. By the time I pay rent and utilities, insure one vehicle for us to drive and feed my family, as well as maintain some of the stuff we own, I don't have that much left over. Since I was 20 years old I put away anywhere between $5000 and $15,000 towards retirement every year until last year, and I'm still short of a retirement goal of stopping work at 60, and having an inflation adusted income of $35000 a year for 30 years.

I mean I guess I could give up my two dogs and save like $150 a month, but that extra $1800 a year in RRSP savings truely represents so little, it's not worth it for me. I don't buy flashy clothes, fart I hardly buy clothes ever and if I do they're on sale, I might play 12 rounds of golf a year. I did pay $325 to play Rec hockey this past year, so I guess I should put that to retirement as well as my $30 slow pitch fees. I don't see the point of living like a poverty level lifestyle so I can save enough to retire at 60. I'll take my chances that I have to work till I'm 75 and at least eat three meals a day, and enjoy the odd thing while I'm still able to.

If you can't do it by 60, then you probably need to plan to work till 65. Also factor in CPP and OAS (although this is riskier since those programs may not be around in 30-35 years.)

[Sylvanfan]

Furthermore, only two in 10 employees in the private sector have a company pension to help pay for expenses in their golden years. At the same time, the number of retirees is expected to swell as more baby boomers reach retirement age.

Thats been a problem for me. Working as a draftsman, which I admit now was a terrible career choice...I had one year out of 14 where an employer did anything to give me incentive to save for retirement. I actually had a written contract for 5% of your income RRSP matching to a maximum amount of $3500 a year. Well the first year they did it...the second year the economy was going bad and although they had money they pulled the program and folded the company the next year because two guys with massive ego's couldn't reach any type of agreement. So in 14 years of working for private companies...I've had my employers give me $3500 to help with retirement.

Maybe if there was more incentives from governments for private companies to set up more RRSP matching or something to get people to build their own pension it may help out. I'd be a lot less discouraged about investing if I was getting some help. I might make the effort to try and stretch my annual RRSP contributions from 13k a year to 16 if I knew it would net me another 4 from my employer. As is stressing over this...I will end up dead when I'm 65.

[4X4]

This:

Originally Posted by habernac

I put away some, but I'm putting way too much faith in what I'll get for inheritance.

Plus this:

Originally Posted by CaptainCrunch

I think there's also a sector that believes they'll be dead long before retirement so why save for it.

Equals my retirement savings plan.

[Frank MetaMusil]

Originally Posted by Sylvanfan

Furthermore, only two in 10 employees in the private sector have a company pension to help pay for expenses in their golden years. At the same time, the number of retirees is expected to swell as more baby boomers reach retirement age.

Thats been a problem for me. Working as a draftsman, which I admit now was a terrible career choice...I had one year out of 14 where an employer did anything to give me incentive to save for retirement. I actually had a written contract for 5% of your income RRSP matching to a maximum amount of $3500 a year. Well the first year they did it...the second year the economy was going bad and although they had money they pulled the program and folded the company the next year because two guys with massive ego's couldn't reach any type of agreement. So in 14 years of working for private companies...I've had my employers give me $3500 to help with retirement.

Maybe if there was more incentives from governments for private companies to set up more RRSP matching or something to get people to build their own pension it may help out. I'd be a lot less discouraged about investing if I was getting some help. I might make the effort to try and stretch my annual RRSP contributions from 13k a year to 16 if I knew it would net me another 4 from my employer. As is stressing over this...I will end up dead when I'm 65.

I think another thing you need to take a look at is: What are you doing with the money once it goes into your RRSP? Do you have a good balance of cash, funds, stocks, bonds, etc?

The reason I ask is that if you've got the majority of your money tied up in a GIC (for example) you won't make much even at maturity. Its obviously a safer bet than stocks, but if you educate yourself on good quality buys you can get your RRSP portfolio to far outperform the low-risk options.

[macker]

[QUOTE=Sylvanfan;2456668]For all the flack my generation gets for spending...I really don't know where I can cut my current spending.

I mean I guess I could give up my two dogs and save like $150 a month, but that extra $1800 a year in RRSP savings truely represents so little, it's not worth it for me.





Check out this website : http://www.my1percentadvantage.ca/flash/custom.swf?cmp=
Even 1% extra will make a difference in the long run. I still wouldn't invest with GWL but it is a good site to motivate investing elsewhere if nothing else. You need one of the old school "rule of 72" guys to "pay" you a visit

[macker]

Originally Posted by Cowboy89

I agree with this. The problem isn't really an income problem, it's a spending problem. Consumer culture encourages people to live beyond their means and steal from their future for current consumption.

Sing it Kanye.....All Falls Down.....I got a problem with spending before I get it....we all self conscious i'm just the first to admit it

[Bring_Back_Shantz]

Originally Posted by Sylvanfan

Furthermore, only two in 10 employees in the private sector have a company pension to help pay for expenses in their golden years. At the same time, the number of retirees is expected to swell as more baby boomers reach retirement age.

Thats been a problem for me. Working as a draftsman, which I admit now was a terrible career choice...I had one year out of 14 where an employer did anything to give me incentive to save for retirement. I actually had a written contract for 5% of your income RRSP matching to a maximum amount of $3500 a year. Well the first year they did it...the second year the economy was going bad and although they had money they pulled the program and folded the company the next year because two guys with massive ego's couldn't reach any type of agreement. So in 14 years of working for private companies...I've had my employers give me $3500 to help with retirement.

Maybe if there was more incentives from governments for private companies to set up more RRSP matching or something to get people to build their own pension it may help out. I'd be a lot less discouraged about investing if I was getting some help. I might make the effort to try and stretch my annual RRSP contributions from 13k a year to 16 if I knew it would net me another 4 from my employer. As is stressing over this...I will end up dead when I'm 65.

Wow, not to be a dick, but isn't that kind of a backwards way of looking at things?

You don't want to invest more in your RRSP's becasue you're not being given more money for doing so????

Seems to me if you don't have an employer who matches contributions you should be making an effort to put away more.

Seems to me that's exactly the kind of thinking that is causing the how problem we're talking about. Too many people who make the argument "Well what's the point of putting this money away when there's no real incentive to do it?".
Do I really need to point out that the incentive is an earlier and or easier retirement?

[CaptainCrunch]

[albertGQ]

Originally Posted by CaptainCrunch

That doesn't make sense

Today is Tuesday

[Traditional_Ale]

Change bugers to Tacos and its a winner.

(Taco Tuesday...mmm...rocked seven of 'em today...)

[CaptainCrunch]

Originally Posted by albertGQ

That doesn't make sense

Today is Tuesday

Quiet You!!!