The Star published this graphic (available online with the original article or as the second picture in this slideshow) about the proposed Tax-Free Savings Account as part of yesterday’s report on the federal budget. The $30,000 renovation and $15,000 wedding seem like wishful thinking, but no more so than the $10,000 car that doesn’t need replacing for 40 years.
What struck me about the graphic was how neatly it illustrates the effects of life’s big expenses. Of course, for the sake of simplicity, it leaves out major money-drainers like supporting your university-educated children until they’re 35, buying your new hip in the States because you don’t want to wait 12 months in Ontario, and digging your poker-addicted son out of debt.
But what I’d really like to know is who are these people who are still saving $150/month after they retire and hit the road in their new RV? It’s an awfully optimistic view of the average person’s retirement income potential.
2 Replies to “A lifetime of saving”
Oddly, the graph doesn’t match its labels. The $15,000 wedding goes with a $60,000 drop in the graph.
Some would say that it’s typical of the Star‘s grasp of finances. More likely, the budget was for $15,000, but Bridezilla drove the cost up to $60,000.