The bill authorizing it just passed in the House of Commons: http://www.fin.gc.ca/n12/12-067-eng.asp
Regarding the original article posted, I don't disagree with her general theses that "This do-it-yourself pension system (IRA) has failed" and that people in general are not saving enough for retirement. The same can be said for RRSPs and the savings rate of Canadians.
But otherwise his detailed numbers are rather meaningless, particularly in a Canadian context. For example, it ignores what people may have in other Pension Plans; national differences in retirement income support; national differences in personal indebtedness; and whether or not you "need" the same income in retirement.
PS: Percentage of workers with DB pensions in the US is admittedly declining. (eg. The percentage of households with members in DB plans dropped to 43% in 2010 from 48% in 2006. http://www.pionline.com/article/2012...ans-nirs-finds)
But if you are in the lucky 43% you don't need the millions of dollars in personal savings that Professor Ghilarducci suggests. Makes her "75%" scare tactic look a little ridiculous
Last edited by OhGreatGuru; 2012-07-26 at 05:28 PM.
The opposite of the IRA would be very socialist for the Americans. They are proud to embrace capitalism.
They just haven't realized that they have already enjoyed their retirement money, or they are finally and sadly realizing it now.
It is easier to have a great economy when everyone is spending all of their money.
I get the point of your post, but you are painting with too wide a brush. Canadians are in just as much personal debt as Americans. There are many people in both Countries who are very well prepared for retirement.
Originally Posted by Cal
I remember my brother in law buying his first cell phone , nobody else we knew had one and we all went to see his cell phone like it was a new car or something.I think it cost him $3000 to install in the car and at night part of it would be removed as it was considered so valuable back then lol
My poor student daughter moved out to her new apartment today ,She has brand new furniture that she saved and paid for.She made $17,000 last year from working plus got a $9300 student loan ,fico score 780 and $8100 in her bank account.This year she is not getting a student loan as we are paying 100% schooling expenses but she has to work to pay her rent.
I could easily pay her rent for her but we have taught her well to budget ,people here thought it was ridiculous that we gave her a $40 a week allowance when she had a job but that exercise taught her to save all her pay cheques and live off that $40 a week allowance.She still gets that $40 a week from us and she has been trying to stick to a $80 a week budget and succeeding since last summer when she moved out.I had to take her out to shop for clothes as her shoes and her pants were ragged lol.How many parents have to fight with their kids to buy TWO pairs of Jeans and convince them one pair is not enough. I spent $370 on her new clothes and shoes and she thanked me and said that will do her until next year now and I will have to drag her out again next year or she will wear them til they fall apart lol
Poor students living on OSAP ,working minimum wage jobs and renting a room are far better off than some of our parents were raising large families.And I can guarantee my parents when they were younger never thought for a second the elderly were a burden and stealing from their future.The younger generation are slowing developing a what can you do for me mentality and feel entitled to so much more than when 'we' 45+ were growing up.
Here's an article that compares how the 45+ crowd had it back in their day compared to today's young adults:
Which is why traveling around the world or learning about the world is so important. Otherwise it's easy to sweat the small stuff.
Originally Posted by brad
I still shake my head at my classmate who thought his parents did not love him as they gave him the second best stereo for his birthday. Or the separatist who expressed his belief that Canada was not living up to it's potential by writing "Canada is a third world country". Contrast that with trying to live on less than $2 per day and scrounging for food in garbage heaps ....
As for the intermittent windshield wipers - I think your timing is a little off. I can remember them in the early 70's. Then too, this wiki link claims the big three automakers were installing them in 1969.
Square Root - 'I get the point of your post, but you are painting with too wide a brush. Canadians are in just as much personal debt as Americans. There are many people in both Countries who are very well prepared for retirement.'
True, and True. Many have saved enough or retirement, if others, for whatever reason chose not to, I don't have alot of sympathy. Having said that, some b/c of illness, disability or whatever, someone cannot save adequately for their retirement, I do feel they should be helped in some way or form.
It is often quoted that the demise of DB pension plans transfers the burden for retirement income planning from companies to the employees.
This may turn out not to be true.
The responsibility will actually transfer from companies to the government, with voting low income retirees demanding support from the government.
Governments are starting to realize the problems they are going to face in the future.
Finance Minister Flaherty's refusal to extend contribution timelnes is an example of government push back.
Last edited by sags; 2012-08-09 at 03:22 PM.
Government is working to side step the issue as most can see, making adjustments with the CPP would have been a sound way to address the issue.
Most people would say I don't have the extra % to contribute but would adjust without a choice being given.
Sympathy or not we still pay.