Canadian retirement age pushed back to 68: study

I know people making 70-80K per year who have credit debt in the 20K range. Why ??? During the past 5 years they've made between 300-400K and when asked what they did with all that cash, they give the "I don't know" reply + the deer in the headlights look. Why buy a new car at 25-30K, when you can buy the same car 1-2 years later for 1/2 the price, albeit with a few kms on it. What ever happened to buying a 2 year old car for 12K, putting 2-3 K down on it, paying it off in 3 years and keeping it for 5 years. After ya pay it off in 3 years @ $300. per month, ya keep putting your "normal" monthly car payment into a savings account... DON'T TOUCH IT... and at $300. per month... in 2 years ya have 7.2 K to do whatever ya want with... intelligently, of course. Ya put 5K into a GIC or RRSP and start over again with another used car with the 2.2 K downpayment. Simple math and budgeting = long term financial control.

Here's a partial solution to straightening out the inequities and improving the average Canadian's financial lot....start voting as a group...say Canadians, instead of the divided and hyphenated Canadians that Trudeau made us. Take those votes and demand a flat tax of 10% average (0% under $15K, 5% from $15K to $40K and a max of 15% over $100K) and force the government to manage on that. Demand that the enormous, ineffective, bungling, overpaid, bureaucratic machine, be cut by at least 40%, removing ALL redundancies. Give the government 10 years to pay off all our debts and make deficit financing illegal without specific approval by vote. Return to a legitimate currency system (gold or another non manipulatable standard) and restrain the banks to a lending multiplier of 7 times assets, while barring them from all outside enterprise. Not the total solution, but certainly a very good start.

I think chip is fibbing period. Sounds more like a American kid making things up, as he speaks of no real life realities.

Yes Chip, I completely agree with your last comment there.
I had a good chuckle with the "deer in the headlights" statement. However, I get the same. For me, a female, I don't understand why other females think they MUST have that "400 grand" home.
There seem to be so many things that people consider "must haves" in today's day that I just don't understand.
We are a family of 4. We don't have all the bells and whistles but everything is paid for. We also don't believe in going to the gov't for bailouts. Our family works together and supports each other and none of us would think of things being any different. It's a good feeling.

My question is directed to Joe. Where are you getting your facts? I am 32 and none of my co-workers, friends or family that are between the ages of 25 and 40 make more than that and they are all working full time. What Canada are you living in?

Chip is right on alot of things but I disagree on life then and now. In 1971 I made $18000. per year. But I also bought a house for $69000.00. The same home today is $550000.00 and the saliers are no higher than $50000.00 per year on average. Sure we make more today but things have gone alot higher than the average wage. Back then my wife did not work and raised 2 kids. Try doing that today. Both people have to work to bring is at least $90000.00 gross pay and have two kids, feed them educate them and then tell me what the $%#&^% is going on!

NOTE TO CHIP: since you have all this time and money on your hands Chip, why not go back and complete grade 3 so you can learn to spell correctly and maybe even learn to put a sentence together that makes some sense to other people.

I am speaking from the point of view of a 33 year old wife. My husband works and makes just over $80,000/year. I am a stay-at-home mom. When we met, we both owned house purchased before the "boom" in Calgary. I sold mine, and we moved into his. 5 years later, 2 kids, and a new house later we now live in a 2700 sq ft home that is 66% paid off. We have a minivan that we bought in 09 (it is an 08) and my husband drives a 1996 Corolla that was paid for in cash. No, we don't have the fancy cars, but we have a beautiful home. No, we don't get to take trips to Europe, but that's what our retirement is for. Holidays in our home usually consist of a roadtrip south of the border (4 hours there and back)

The point of this: when we met, we both had our act together financially, and any toys (which isn't many) were purchased with CASH. Sure, we could own a smaller home and be in it mortgage free, but we are still relatively young, and with the way we are going, it will be paid off in 10 years.
I am not worried about retiring. In fact, that will be the time when we can do all the travelling we have held off on.

If a person is smart, get your act together while you are still young so you aren't wondering why, at the age of 55, retirement just seems like a far off dream.

Hello...
I am 65 years old and uneducated.
I was able to raise two kids and provide for my family and
all there needs as well as education.
the one thing that worked for me was ( NEED AND WANT) .
Earning a very average income my whole life i took advange.of early RRSP contributions
and. and found over the years that they grew at a rate that exceeded inflation.
my advice is simple... live with in your means, and think long term with your investments.
and you should be ok.. today i travel on holidays by looking for deals, and continue to live happily
and modestly, and still live by thinking NEED AND WANT..

GOOD LUCK TO YOU ALL. AND REMEMBER WITH OUT HEALTH THE REST DOES NOT MATTER..

Daniel

Hats off to you! That's the key message! Deteremine needs vs wants... Once you got your needs covered - you can look at your wants..(And saving for your retirement is a NEED!)

I have been a disciplined saver since my early 20's as has my wife. I am coming 51 soon and can see retirement clearly in the next couple of years. I have two kids, once recently graduated from university and one with about 18 months to go.

I will work until my kids are on their own, but after that work will be strictly optional for me.

My wife and I both make decent salaries, but not huge as compared to others we know. Our home has been paid off for close to 10 years now. We go on at least one nice holiday per year. No debt other than credit cards which are paid off monthly.

Savings are around 1.65 million with an additonal $100,000 ear marked for each of the kids when they leave home. The kids can use the money more in their early 20's than when we are gone. We also paid fully for both of their educations. The kids did their part by maintaing deans list marks every year.

Life is about choices. You can blow all your money on McMansion homes, lavish trips and expensive vehicles or you can live a little more frugally and sock the money away. Get a clear savings/investment strategy and stay with it.

i retired at age 52 and haven't looked back. we.ve learned to live on about 1/4 of what we were pulling in while working. there's no need for big vacations when there's no stress in your life and if we feel like travelling, the little woman goes out and gets a job for a few months and away we go.
retire as soon as possible and let the young folks take over so they can buy a house and go on big holidays and pay the taxes and such............... shame on anyone for working after 65.

Congradulations, YK! You have been doing very good job on managing your life. Just one question for you, how do you put your money invested to agaist infulation? Thanks.

I'm on the Freedom 95 track, myself.

wow wow wow Delilah

I agree with a lot of comments and also disagree. Times change. My parents never had cable, cell phone or internet bills. Majority was one income, so they could afford it. People want more so two incomes are required. I agree that people think they deserve a certain lifestyle at 20 when previous generations had to wait until 40 to enjoy their fruits of thier labour. Isn't that part of life? Learning from your mistakes. People went bankrupt in 1970 just like 2010.

Wants and needs people. Wants and needs.

FYI I will be retiring at 55

I think to create spending habits that in include,, need and want.mentality..
followed by long term investment planning like the principle of compounding interest.
though the use of RRSP,S gives one a better chance to retire comfortably.
rather than no planning and the investment of high risk stocks.. yes the rewards can be great. but only if you can weather the loss,s of high risk instuments..one thing i have learned as i have aged is that i don,t need near as much as i did raising children. and also i think as we grow old we have experienced a lot of things and find less need or want to spend as much as when we were young.
I am currantly retired and never made a lot of money working as i am not well educated,
also at 65 i spend more time doing less expensive things.and focus on health and relationships.
which cost less.. well this is just my opinion.. good luck to all in retirement.

I agree that we all have to cut back on things now to enjoy tomarow. But there is also something that the politicains the people who we pay for them to have a glorified retirement can do to help all canadians from the people that work the minium wage jobs to the ones that make 20 plus a hour is that they can support the Canadian Labour Congress plan for CPP increase. I urge people to go to the website www.canadianlabour.ca and see for as little as 2 cents an hour up to 9 cents an hour can double what will be there for us when we retire.

It doesn't matter how much you make or have saved up for your retirement, the Government WILL ultimetly get it all in TAXES. When you convert your RRSP"s into A RRIF in your 71 year, the Government now TELLS you how much money you HAVE to take out each year from your RRIF. (percentage wise) and they get the benefit of the taxes from that withdrawal. The Government (IRS) will ultimatly erode you of your savings, because that is how it is set up. If you are a senior with a set income and no further earnings coming in, there is nothing one can do unless you live under the poverty level, or get a job at 71 yrs.old and then the Government sets that basis for you as well.If you make too much with the job, the Government then claws back your Old Age Security money. It's a no win situation, no matter which Government is the ruler of the day, it will always be to the benefit of that Government. Taxes for seniors are a killer and there is nothing any senior can do about it, if there was , MAYBE it would have been done by now!!!!

It is possible to retire well at 65 or less if you have had a perfect career (no unemployment, no 25% pay cuts, etc.) but that is a fantasy for most people. I have been out of work four times in my 30 year career totalling about 4 years of wasted opportunity, and now at 54 I am facing a bleak decade of menial work until "retirement" if I live that long. I guess my great vaunted university degree wasn't much help when I needed it. NAFTA and other trade agreements really put the boots to my profession and now I'm reaping the benefits of it. Thanks.

I have always said my generation, I'm 43, is going to have to make plans on working untill age 70. Further more, I have plans this year to further my education so I'm ready for that. I am planning to work less physically for obvious reasons, at age 60 something it's pretty hard to keep up and you have to sit down and work. I suggest that many do some thinking and plan on working longer. "Freedom 55 " it's only wishful thinkig, a hope and one that it is not achievable. Now if you are making six figures yearly and own property and will continue to generate income even in your sleep, well, you can retire anytime.