Got enough to retire? Think again

[kumquat]

Quote:

Originally Posted by Meadbh CG, one basic premise in the article is the CPP. The CPP balance grew like Topsy in the last decade precisely because large chunks of it were invested in the markets. I wonder how it's faring now? In other words, how secure is CPP?

You may have to draw you own conclusions:

Annual Report of the Canada Pension Plan 2006-07

[Canadian Grunt]

Quote:

Originally Posted by Meadbh CG, one basic premise in the article is the CPP. The CPP balance grew like Topsy in the last decade precisely because large chunks of it were invested in the markets. I wonder how it's faring now? In other words, how secure is CPP?

CPP was funded for the next 75 years before the melt down. We currently run a surplus from contributions until the baby boomers reach the peak retirement numbers.

The plan is solid, unlike personal retirement accounts they can invest for the long term 50+ years and yearly fluctuations don't matter as much. We recapped the plan in the early 90's so there is no problem with the fund. All actuaries state the fund will be there when it’s needed.

[Meadbh]

Quote:

Originally Posted by Calgary_Girl True, but how secure is any pension these days (including pensions in the private sector)? reportonbusiness.com: 'Disaster' unless Ottawa offers pension relief

According to today's Globe and Mail, CPP is shopping for high end distressed real estate in the US and UK.

[haha]

Quote:

Originally Posted by bbbamI Actually the most pleasurable things in life are free...aren't they? (well almost free)

True enough, but as you get a few miles on it's hard to do them more than episodically. Of course, that does leave TV...

Ha

[harley]

You know, y'all really don't appear to have read the article, or maybe Money is just an easy target. What it really says is:

1) Needing 70-80% of your preretirement income is a commonly accepted benchmark. True, I've heard that without accepting it for most of my career.

2) If you made big bucks while working you'll need to replace most of it, since SS will replace a smaller percentage depending on your salary.

3) They think it would be prudent to be conservative when estimating how much you will need. Build in a cushion.Not a bad idea, IMHO.

4) If you set your sights too low, you'll relegate yourself to a lower lifestyle than you may want. Cover your bets.

5) When you get within 10 years of retirement, quit estimating and start doing a real budget. Again, what's wrong with this.


I agree with y'all about not needing the $180K after retirement if you are a decent LBYM type, and all the other things you can do to limit your costs. I was just a little surprised at the Money attacks on one of the more reasonable articles they've printed recently. I say give credit when it's due, aand kick their @sses when it's deserved.