Retirement Is Dead

220hertz

Man, I though MacLean's was dead. I haven't see one of those in 25 years. But from the article: Forty per cent of us in this age range have less than $5,000 in savings. That's Canadians, aged 55-64. I expect younger generations will be no different. It's an awful lot of people, given the age demographic in the country.

Rooster61

I've never understood the logic behind the idea of a "nest egg". Years ago, perhaps, it might not have been clear to the average person that money has to grow over time to stave off inflation, but that information has been widely available for decades and many people still don't put money into any kind of investment. Not judging anyone. Circumstances are different for each and every person, and financial literacy isn't universal. But I am genuinely curious as to how such a large number of people that have/had careers that paid ok end up paycheck to paycheck when retirement comes around.

heathrow83829

I find it hard to believe the author could not figure out personal finance. He's certainly smart enough with that economics degree and those epic writing skills. If we're just looking at how to improve the individual: The issue is lack of self discipline. as he said, it's just too easy to spend. The solution: more social security, in effect a forced retirement plan. Instead of 7.5%, make it 10% or even 15%, 20%, whatever it takes. that takes self discipline out of the equation and fixes the imbalance between spending and saving. If we're looking at society, then there's a lot of ways to bring the cost of living down. the cost structure of an individuals spending is mostly on housing. Unfortunately, right now your only choices in the developed world are: an extremely fancy luxurious living arrangement (most condos, apartments, houses, etc) far beyond your means or an illegal tent under the highway. But, looka tthe hazda tribes: they show you don't need millions of dollars for shelter. they don't even have modern tools. they build their own shelter by hand every night with a few hours of work, with NO money or retirement savings whatsoever - what can we learn from this? sure we may not build the exact same structure but there's a lot to learn from this conceptually. There's a world of innovation waiting to happen between those luxury condos and a handwoven 3 hours makeshift tent - unfortunately right now, it's all very much Illegal.

laurencerowe

> The reserve chute is the Canada Pension Plan. The CPP was originally intended to cover one-third of Canadians’ retirement income, but these days it’s more akin to what you might get from a part-time job: a sheet too small for most beds. The maximum CPP payout comes to about $18,000 per year; the average is just over $11,000. Isn't the reserve chute the Old Age Security pension along with the Guaranteed Income Supplement? Assuming a single person with no other income, they would add $11,378 to the maximum CPP payout of $18,092 for a total of $29,470 or $14,918 to the average CPP payout of $11,000 for at total of $25,918. (Unlike the CPP, OAS is clawed back if you have other income over a certain amount.) Retiring at 70 would raise the maximum CPP to $25,690 and OAS to $12,272 for a total of $37,962. https://www.canada.ca/en/services/benefits/publicpensions/ol... Not a huge amount but substantially more. Renters also seem eligible for other help at these income levels which might amount to $5,000 per year in BC. https://ageplacehub.ca/blog/affordable-senior-housing-canada... (I am not Canadian but did try and look into pensions when I thought about moving there.)

freetanga

I am a Gen X. My grandmother, who was born in 1906 and passed on in 1994, worked at home, cooked, cleaned for most of her life. He had 3-4 dresses in her closet, and whenever I visited she gave some money to go buy a small bottle of Sprite for lunch. My parents define their retirement as cruises, traveling, etc. My mother has 3 closets full of clothes, the latest iPhone and iPad to check Facebook… Both generations worked very hard, and I don’t want to criticize them. I keep telling my father and mother that they should burn and enjoy all their money while they can. My point is not to criticize a generation, but to try to contextualize that a comfortable wealthy retirement is relatively new in our social concept, and so far it seems more as a one-off trick that only baby boomers pulled after the huge economic growth post 70s, than a sustainable economic pattern.

throw0101d

There is a lot of misguided thinking about retirement, as shown by things like "Canadian couples say they need $1.7M to retire. Are you on track?": * https://globalnews.ca/news/11705204/canadian-couples-retirem... This survey is released by a bank that makes money from AUM fees for things like mutual funds. It is in their interest to think you need more, but most folks do not need as much as they believe. The study tends to be released during "RRSP season", which is close to the last time Canadians are able to put in money into their retirement saving account (RRSP ~ 401(k)) for the current tax year (and get a taxable income reduction). This (flat) fee-only advisor goes over some of the preconceptions that have: * https://www.youtube.com/watch?v=5LmiW4FgAL8 He's put out videos about what you can expect if you have 'only' CA$ 250k saved: * https://www.youtube.com/watch?v=QLQk6X3NCPs (single) * https://www.youtube.com/watch?v=_9-8CIvphfI (couple) * https://www.youtube.com/watch?v=EkyvLe66G94 (couple) Or even a single at 65 with $125k: * https://www.youtube.com/watch?v=MEBjIFg08lM

Havoc

He owns property, could afford raising two kids and can speak of social safety nets. That seems comparatively grand compared to what humanity has set subsequent generations up for. Don’t think it’s a coincidence that people are depressed, doom scrolling, taking long bets on prediction markets and approaching life with a general sense of financial nihilism. May as well get that avocado toast if house prices are perpetually out of reach