Thursday, March 18, 2010

Dumbing down with David Dodge


Having helped destroy the option of getting more return from your savings (i.e.by killing income trusts through the many spurious and patently false arguments that were employed by him and others intent on screwing the average Canadian) now Dodge David wants us to save more? Canadians are supposed to increase savings while taxes like the HST destroy their after tax earnings and wages aren’t keeping pace with inflation. What planet does this guy live on?

Meanwhile Where is David Dodge’s proof for any of his false arguments against income trusts? David Dodge is the problem. Not the solution.

Canadians need to save more: Dodge

Janet McFarland
Globe and Mail
10:11 EST Thursday, Mar 18, 2010

Toronto — Canadians need to save between 10 per cent and 21 per cent of their pretax incomes each year – if they save consistently for 35 years – to have comfortable retirement incomes, according to a new report by former Bank of Canada governor David Dodge.

The report says many Canadians are unaware of the high savings levels they need for their retirement years, and may believe they are saving adequately when they are not.

The report, co-authored by Alexandre Laurin and Colin Busby and published by the C.D. Howe Institute, calculates various savings scenarios based on assumptions that Canadians aim to have annual retirement incomes between 50 per cent and 70 per cent of their preretirement incomes.

“Our findings provide Canadians with a ‘reality check' about the saving rates required to meet their retirement goals,” Mr. Dodge said in a release Thursday.

The study said a broad debate about retirement incomes in recent years has mostly focused on potential reforms to rules for corporate pension plans or the possibility of expanding public pension coverage through a new national supplementary plan.

But there has been little public information about required savings rates for individuals, it says, even though many baby boomers are nearing retirement age and are concerned about whether they are saving adequately.

“The required level of personal saving is unknown to most individuals, leaving them to their own devices for a large part of retirement planning,” the report says.

It also says registered retirement savings plan (RRSP) maximum contribution levels do not allow higher income higher earners to save enough to replace 70 per cent of their incomes in retirement.

And it says many companies' group RRSP plans, defined contribution pension plans and even traditional defined benefit pension plans do not set aside enough income annually to provide “adequate or reasonably assured retirement incomes.”

The authors base their savings calculations on what they call “prudent” assumptions, including a nominal rate of return on investments of 5 per cent, an inflation rate of 2 per cent, and a real return on investments of 3 per cent. They assume annual wage growth of 3 per cent.

The calculations look at three scenarios: early retirement at age 63, normal retirement at age 65 and late retirement at age 67. And they assume Canadians begin saving at age 30 and invest consistently each year.

The report also includes another set of calculations based on a scenario in which some people save less in their thirties, more in their forties and the most in their fifties. In those cases, investors must save much more in their later years to compensate for the shorter investing periods.

According to the findings, people who earn between $42,803 a year and $150,000 a year need to save between 11 per cent and 21 per cent of their annual earnings to retire at age 65 if they want to have retirement incomes at 70 per cent of their preretirement earnings.

7 comments:

Anonymous said...

Many did save enough only to see it destroyed by lies and fraud by Harper and Flaherty. The CONS legacy will last a long time in voters memories.

Dodge was no help flip flopping to his masters requests.

It is hard to find an honest man nowadays.

Or an honest journalist, Diane excepted.

FC13

Anonymous said...

Woah, these people are definitely being over paid,
pension wise that is.

Carswell
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From the comments' section:


Thieves > They should be ashamed of themselves


MP's Pension Plans
What A Friend They Have In Taxes!
The Top Ten
Upon retirement from office, assuming these MP's live only to 75 years, this is what they will receive.
1: Jean Charest, PC: $4,525,537.00
2: Brian Tobin, LIB: $3,907,507.00
3: David Dingwall, LIB: $3,660,930.00
4: Svend Robinson, NDP: $3,556,546.00
5: Bill Blaikie, NDP: $3,380,406.00
6: Sergio Marchi, LIB: $3,105,143.00
7: John Nunziata, LIB: $2,734,328.00
8: Sheila Copps, LIB: $2,551,223.00
9: Andre Ouellet, LIB: $2,636,953.00
10: Don Boudria, LIB: $2,152,672.00
Eighty-seven other MPs, including Bloc Quebecois leader Lucien Bouchard and NDP boss Audrey Mclaughlin, qualify for this gilded pension plan that could cost taxpayers in excess of $124,076,247.00

Anonymous said...

"Former Bank of Canada governor says in report that many Canadians are unaware of the high savings levels they need for their retirement years"

HA! HA! HA! Spoken like a true ELITIST!

Many of us tried, "saving consistently for 35+ years", only to have the thieves who's backs you once scratched steal our savings, after putting irresponsible dorks like Flaherty in charge of fiscal policies for the country they are rapidly bringing to financial ruin...The 'reality check' should be the unveiling of the truth behind the CON's destruction of the $billions$ of us retiree's retirement savings!
But of course, you, as most 'social elitists' do, live on another planet!
AIMHO.

Fransman

Anonymous said...

Canadians need to listen to the government less, generally, and listen less to people like David
Dodge, specifically.

Anonymous said...

Mr. Dodge lost his integrity and my respect when he flip flopped on the Income Trust issue. In Sept 06 he publicly stated that there was a place in the Cdn equity market for Income Trusts. In Jan 07 at the Income Trust hearings, he turtled, and spouted what Harper wanted him to say. This cost ordinary Cdn`s a $35 billion capital loss and the removal of a source of income for Cdn`s. Shame on you Mr. Dodge. Please stop lying and pretending to care.

A Humble Man

Anonymous said...

Dodge can FOAD, imo.

m.

Dr Mike said...

Two things :

RRSPs are now a waste of time & effort as there is nothing left to place in them that can supply a good yield now that trusts are being given the short route to the door thanks to the work done by Dodge & his cohort Carney.

Secondly , we must have the ability to develop a well-defined income stream from our savings by making use of a consistent high yield.

Thanks to these people the savings pool has been decimated & the yields are going to crap , & as a result , the income stream is drying up fast.

The final nail is that as trusts convert within RRSP accounts double taxation kicks-in to give us a boot where it will hurt the most.

Get lost David Dodge & take that Carney turkey with you.

Dr Mike Popovich