Quote:
Originally Posted by Willravel
Holy shit, I didn't know that. That's insane. Over 1/3 of Americans aren't even in a position to save for life after 55 and people still insist there's no problem? That's gotta be some tasty cognitive dissonance kool-aid.
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Canada often has mirror-like statistics to the U.S. with things like these. I'm a part of this group. It's not just a case where I have no retirement savings; I have a negative net worth. This being a result of borrowing for post-secondary education (my only option, unless I wanted to make it in the world with a high-school diploma) and following a path of underemployment. The latter is something I am slowly (but hopefully surely) rectifying. When I was finished with school, my education debt load exceeded my annual salary. Do the math. Now put "extraneous" credit card debt (i.e. living expenses) on top of that. And I even worked part time while going to school full time.
My situation might be uncommon, but I don't think it's rare to have graduates today starting out in the "real world" with a burden that would make baby boomers lose their shit.
Quote:
Originally Posted by dogzilla
How many of that 36% can't save for retirement and how many of that 36% don't save because they think the government will save them? How many of the 36% that can't save can't because they have blown all their money on McMansions, fancy toys, etc.?
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I think a small proportion honestly think the government can take care of them. Even in "socialist Canada," most of us know the eroding value of the Canada Pension Plan. I'll be lucky to be able to draw as much as $600 per month from that in today's dollars. Mind you, this isn't a "hand out"; it's something we pay into.
Regardless, those with McMansions, toys, etc., are likely in a better position to save for retirement than those who can't get these things due to a lack of cash flow. You see, to save for retirement, you need cash flow above and beyond what you pay for rent, utilities, clothing, food, and other expenses, plus whatever discretionary spending you do. And the problem is with those with little discretionary cash available after the necessities have been paid for.
While I'm sure many people waste money on going out, TVs, lattes, fast food, etc., I find it hard to judge people for wanting a piece of the pie that is popular culture. It really sucks living under a rock. I can't allocate more than $100 per month in discretionary spending without going into the red. How far do you think that goes each month? And I try not to spend any of that because I'd rather put it on my credit cards. You wouldn't believe the shit I miss out on. And to think that I owed money after doing my taxes.
I'm not even thinking about retirement.