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

[Sylvanfan]

Originally Posted by Bring_Back_Shantz

Do I really need to point out that the incentive is an earlier and or easier retirement?

At which point I determined that wasn't enough of an incentive for the lifestyle I'd have to live to reach my original retirement goals. So rather than increase my savings to a level where I'd basically give up anything in the world that provides me with any enjoyment for the next 30 years...I'll just plan to work for an extra 15 years and hope that after 5 of those I can scale back to part time working and enjoy the odd thing today.

[Sylvanfan]

Originally Posted by Traditional_Ale

Change bugers to Tacos and its a winner.

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

You should have just skipped eating and put the $7 into an RRSP.

[Kybosh]

Originally Posted by Sylvanfan

You should have just skipped eating and put the $7 into an RRSP.

I'll eat when I'm dead.

[Komskies]

Originally Posted by Traditional_Ale

Change bugers to Tacos and its a winner.

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

Green Diablo hot sauce. MMMM

[Traditional_Ale]

Originally Posted by Komskies

Green Diablo hot sauce. MMMM

Oh yeah....can't wait for tomorrow morning when the fire-poo happens.

[Muta]

I'm trying to get into an industry that makes me so happy, I'll never want to retire. Thus, I'll never have these financial problems that this thread refers to. That's one of the positives about my generation's mindset; if you don't like something, quit, and try something else!

[Traditional_Ale]

Originally Posted by Muta

I'm trying to get into an industry that makes me so happy, I'll never want to retire. Thus, I'll never have these financial problems that this thread refers to. That's one of the positives about my generation's mindset; if you don't like something, quit, and try something else!

So true. If you are doing something you love you never 'work' a day in your life.

[Knut]

Currently I have $24,000 per year going to paying down debt... I will be debt free in 2.5 years and able to keep that same amount as my RRSP contribution. That is the plan anyways!

[Traditional_Ale]

nm

[Knut]

Basically... I am treating my RRSP in the future as a DEBT payment. Automatically the money I am using to service my student loan debt will go to retirement savings.

[Cowboy89]

Originally Posted by Hesla

Basically... I am treating my RRSP in the future as a DEBT payment. Automatically the money I am using to service my student loan debt will go to retirement savings.

Good for you. You're about to witness the reversal of the universes' most powerful force, "compound interest."


After you max out your contribution room, you might want to check out the maximum allowable RRSP contributions. It's only like 18% of income per year capped a level of income in and around the $100,000/year mark. Most likely meaning you would only be able to contribute $18,000 to RRSPs, $5,000 to TFSA and the remaining $1,000 to a taxable account.

[Bring_Back_Shantz]

Originally Posted by fotze

BBS famous last words.

Fair enough, but you have to admit, there is something kind of funny about his logic.

I mean this thread is about how people in the 30s and 40s aren't saving enough for retirement, and then he goes off about how his employer at a job he's been at for 14 years (so he's right in the age group we're discussing), isn't giving him an incentive to save for retirement.

I mean come on, is "They won't give me free money" really a good reason to not save for retirement?

[1stLand]

Originally Posted by Ryan Coke

Yeah, the front line people I work with often have the 'it's so hard to get by' attitude, while wearing their $200 jeans and talking on their new cell phone 10000 minutes a month planning their next trip to Hawaii. I've worked 20 years to get to the point where I can afford all that comfortably, but when I didn't have the money, I just couldn't do it.

It just seems like some people feel they are entitled to a certain standard of living, and if their income can't support it then they 'have' to use up credit to live the way they feel they should.

To be clear, this is not a 'young people these days' comment. There are many motivated, hard working, responsible people that are in their teens or twenties, and lazy entitled people at any age.

I can't understand all the exotic trips people in my generation are able to afford to take (I am 25). Perhaps its because they don't own a house yet and all of their disposable income can go towards 2 international vacations a year.

I dont agree with the high costs of post secondary education. But I also dont feel sorry for those that take out tens of thousands of dollars of student loans to go to school in another city, especially if they could have stayed at home and gone to the UofC or MRU. My summers were spent doing hard labour jobs just so I could pay off my tuition and not have to take out students loans. I also lived with the parents during this time.
Most of my peers were off partying and living it up, while I was shovelling gravel. But mind you, looking back, those were great moments in my life!

So in essence, I agree with you. Young people live waaaaay beyond their means.

[Sylvanfan]

Originally Posted by Bring_Back_Shantz

Fair enough, but you have to admit, there is something kind of funny about his logic.

I mean this thread is about how people in the 30s and 40s aren't saving enough for retirement, and then he goes off about how his employer at a job he's been at for 14 years (so he's right in the age group we're discussing), isn't giving him an incentive to save for retirement.

I mean come on, is "They won't give me free money" really a good reason to not save for retirement?

Look dude....I am trying to save for retirement. But to put aside 2 grand of the 4500 I take home every month plus support my wife and kid, live in a decent place, have a vehicle....it's just not that easy. I found that I can not save enough to have a lesser lifestyle than I currently have when I turn 60 and keep that life style for 30 years. My guess is that if I'm not making it work than all those other people with stuff that I sure as hell don't have like new homes, boats, cars, RV's, and way nicer crap than I have aren't going to make it either.

My point was that 80% of private companies no longer provide programs to help their employees create a pension for themselves. When you don't have the benefit of a pension you better be putting away about 40% of your take home pay, and for a lot of people with families that is hard to do. Even if you've been a cheapskate who did watch his money.

[Frank MetaMusil]

Originally Posted by Cowboy89

Good for you. You're about to witness the reversal of the universes' most powerful force, "compound interest."


After you max out your contribution room, you might want to check out the maximum allowable RRSP contributions. It's only like 18% of income per year capped a level of income in and around the $100,000/year mark. Most likely meaning you would only be able to contribute $18,000 to RRSPs, $5,000 to TFSA and the remaining $1,000 to a taxable account.

The maximum RRSP contribution limit for subsequent years is as follows:

• 2007 maximum RRSP contribution limit: $19,000
• 2008 maximum RRSP contribution limit: $20,000
• 2009 maximum RRSP contribution limit: $21,000
• 2010 maximum RRSP contribution limit: $22,000

So actually, he can get away with that no problem and the limits will continue to rise by 1k each year.

[Komskies]

My friends wish they could take 2 exotic vacations per year. Somehow they spend all of their money on rent, beer, Xbox live, and bananas.

[The Yen Man]

My trick for saving for RRSP is to basically have my company deduct 10% gross pay every pay cheque. I then pysch myself out to pretend that my salary is 10% less. It's nice because my company matches 40% of my contribution, so essentially I'm making an extra 4% from my company. At the end of the year, I top it up, and get a nice little tax return back.

[Knut]

^ We take a few vacations a year... All-inclusives. What we have found is the 1500 to 2000 each we spend there helps us be more productive while we are working.

To me... the vacations are a requirement in our lives to keep the stress levels low and the productivity high.

[The Yen Man]

I guess I'm a bit lucky (or a loser depending on your interpretation) because my vacation consists of sitting at home and playing video games. My last week off from work, I sat at home and played Final Fantasy 13. So I don't spend much on exotic vacations because I don't need it to help me unwind.

[Phanuthier]

Interesting replies. On one hand, I think you got to plan ahead. On the other, I think life shouldn't be about penny pinching until retirement so your retirement home gets a window in front of a tree. For those who are in that situation as described in this thread (i.e. in 30s or 40s and have insufficient plan for retirement) ... you got to think there has to be another way.

Otherwise, if you are penny pinching and still in trouble (sorry Sylvanfan, but maybe using you as an example) ... the economic system of Western Countries are showing its cracks and the future does not look good here.