15 Replies to “It’s Mathematically Impossible for Everybody to Retire Off of the Stock Market”

  2. This, at first scan, looks like a good piece of Cappy’s work. Worth a concentrated read. I will say this about RRSPs though, they are simply a tax deferal scheme.
    Last year, I earned $2k and owed $4k in taxes! RRSPs!
    This year is a bit different

  3. Retire off the Stock Market you say?
    If it is impossible then how are pension plans across North America going to pay those monthly cheques? The same good government that pays pension checks each month have lowered bond returns to the point that investors have flocked to stock markets to get a big enough return to live on. Why should these retirees get a risk free retirement when government has to spend money they don’t have?
    It is a bad joke that most people think their pension plans both private and government will be there to pay them. They won’t be!

  4. Defined benefit pension plans will not exist for the Gen Xers and the Millenials …
    They are the doomed generations …
    I would advise young people to live-it-up and apply for refugee status in Sweden.

  5. A more general form of the equation is that it is mathematically impossible for all of us to retire on government benefits.

  6. It’s supply and demand. If people don’t have enough money to buy cars or houses as they are, the makers of cars or houses will make cheaper cars or houses. If enough people can borrow enough to buy the cars or houses, the prices of cars or houses go up to the point that almost everyone has to borrow to buy one.
    So it will be with retirement. If there is enough money for all of us to live on in retirement, the prices will go up because that money is out there.

  7. While I agree that relying solely on RRSP’s is poor planning it would appear Cappy has made some pretty large assumptions.
    40K/yr per boomer to retire right now? Median US *household* income is only 52k.
    Likewise, he’s assumed a 20 year retirement. If most people retire at 65 and the average like expectancy (both sexes) if only 79.3yrs then he’s assumed an extra 5 years.

  8. Right now there is a massive net input into pension funds, primarily because of the average age of the baby boomers (most born between 58 and 62). Within 10 years there will be the start of a net output (more receivers than payers) and it will grow substantially over the following 10-20 years. During this time pension funds will be sellers of assets in order to pay disbursements. Gen Xers and Millennials will be fine. The longer they wait, the cheaper the things they want to buy (houses etc.) will become. But we aren’t there yet.

  11. Could this be why Turd and the Libs (millennials are welcomed to steal this as a band name) are in a hurry for the first phase….getting the “do no harm” MDs accustomed to the idea of Assisted Suicide?

  13. Tooner and PB both make good points. PB’s last sentence contains another clue. Retirement at 65 is a thing of the past. The Harper government showed some recognition of this with their deferral (now revoked) of postponing OAS eligibility to 67.
    Face it, folks. If you’re living longer and healthier, you’re going to work longer.

  15. the like of Turd-A-Loo think by bringing in new blood (immigrants and refugees) they will help sustain the tax in flow of $$$ and thus be able to support future “programs”, but as usual, the unknown unknowns may just trip that up. The new arrivals need to work, and there in may lie the the lie. As to living off the stock market. That beast is a dead weight on “production”, and will collapse when production becomes to inefficient to support it, or when enough production flees over seas and they raise their capital over there.

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