unused room of $671 Billion may be a number from the tax department but is not a meaninful number. My children have worked part time for 5 or so years, now have unused room of about $12,000, not only individuals making less than $25,000 have no reason to save, those with good DB plans such as those in the Public Sector have little value in saving as well as those who already retired. Add up the bits from these souces and then discuss the lack of use of RRSP room. from the remaing.
My take is that young people, with their first real jobs, before they have spouses, houses, children and elderly parents in nursing homes, and before repaying student loans, should be encouraged to amass a solid amount for investment. In equities. The miracle of compounding will do the rest. Then, when the pressures Robin Pond refers to come to bear, saving is less of a priority. They will still have a cushion for retirement.
I agree with him that the PRPP is not the magic answer that many think it will be. As Bob says, if people feel they don’t need to put money into RRSPs why would they put money into PRPPs — a locked-in version of the same thing?
If there are so many Canadians not contributing to RRSPs, and I am one of them, though I do at a very small amount, is it not possible that they have no spare cash to contribute, especially if they are families? Is it not possible that wages are no longer covering expenses? I have worked most of my life, except when I stayed home with the children, and have ever only been not been able to just cover the day to day living. Because I was able to buy a home I have used that equity to help finance my extras – dance classes; school needs etc. and I don’t live rich – no alcohol in the house; used cars/appliances; clothes that have lasted forever; used furniture and until my inheritance I have not been able to get debt free. So just maybe the majority of the population have hit the absolute limit of their wages/salaries being able to meet their needs. There is no room for saving and the politicians and higher wage earners just don’t get it.
As an aside, Smart Meters that we are being forced into because, it seems, the providers of electricity have not managed their resources well, will force some people to be up late to meet the “low usage time” which might mean they get run down because they are not getting enough sleep. How does that benefit the population? We just end up needing more health care. When are the “higher ups” going to look at whole pictures again? When are they going to stop thinking they don’t have to worry about the future for us? When are they going to start making sense again? Apologies for the rant.
Bob:
unused room of $671 Billion may be a number from the tax department but is not a meaninful number. My children have worked part time for 5 or so years, now have unused room of about $12,000, not only individuals making less than $25,000 have no reason to save, those with good DB plans such as those in the Public Sector have little value in saving as well as those who already retired. Add up the bits from these souces and then discuss the lack of use of RRSP room. from the remaing.
Wednesday, August 03 at 3:28 pm |
Neil Craig:
Hear, Hear.
Thursday, August 04 at 7:36 am |
Priscilla Healy:
My take is that young people, with their first real jobs, before they have spouses, houses, children and elderly parents in nursing homes, and before repaying student loans, should be encouraged to amass a solid amount for investment. In equities. The miracle of compounding will do the rest. Then, when the pressures Robin Pond refers to come to bear, saving is less of a priority. They will still have a cushion for retirement.
Thursday, August 04 at 3:19 pm |
Marty:
I agree with him that the PRPP is not the magic answer that many think it will be. As Bob says, if people feel they don’t need to put money into RRSPs why would they put money into PRPPs — a locked-in version of the same thing?
Tuesday, September 20 at 3:53 pm |
adezseaw:
TcM5yQ zilnobolsofl
Tuesday, February 28 at 11:57 am |
K. Fyfe:
If there are so many Canadians not contributing to RRSPs, and I am one of them, though I do at a very small amount, is it not possible that they have no spare cash to contribute, especially if they are families? Is it not possible that wages are no longer covering expenses? I have worked most of my life, except when I stayed home with the children, and have ever only been not been able to just cover the day to day living. Because I was able to buy a home I have used that equity to help finance my extras – dance classes; school needs etc. and I don’t live rich – no alcohol in the house; used cars/appliances; clothes that have lasted forever; used furniture and until my inheritance I have not been able to get debt free. So just maybe the majority of the population have hit the absolute limit of their wages/salaries being able to meet their needs. There is no room for saving and the politicians and higher wage earners just don’t get it.
As an aside, Smart Meters that we are being forced into because, it seems, the providers of electricity have not managed their resources well, will force some people to be up late to meet the “low usage time” which might mean they get run down because they are not getting enough sleep. How does that benefit the population? We just end up needing more health care. When are the “higher ups” going to look at whole pictures again? When are they going to stop thinking they don’t have to worry about the future for us? When are they going to start making sense again? Apologies for the rant.
Thursday, December 08 at 5:18 pm |