It used to be that most parents would provide their kids with food and shelter until they left high school. Some would stick around home while attending higher education, but most would move out on their own and start taking responsibility for themselves.
Then a funny thing happened in the economy. Stuff changed. Incomes declined while the cost of living went up.
For the first time in modern history 18-34 year olds in the US are more likely living with their parents than on their own, with roommates or with a romantic partner.
A big reason is a decline in economic opportunities. As the cost of living has escalated and wages have stagnated, young people face mounting student debt and daunting barriers to renting or owning a home, creating obstacles to cohabitation and marriage.
The trend is led by young men, whose fortunes have been declining since the 1960s. While they have always lived with their parents in greater numbers than young women, this setup became the dominant living arrangement for them in 2009. In 2014 35 percent of young men lived with parents, while only 28 percent lived with a spouse or partner (for young women, the percentages are flipped: 29 and 35, respectively).
read the full article here.
Bull! Bull! Bull! pointed out this article in the Vancouver Sun.
The ratesupermarket.ca survey of 1,700 Canadians found 52.8 per cent of Canadians overall cannot afford to start or expand their families, with 46.4 per cent of millennials sayings their existing debt was making it impossible, even before considering a mortgage.
Benjamin Tal, deputy chief economist with Canadian Imperial Bank of Commerce, thinks there’s no question household formation is being impacted by prices. “Common sense tells you it makes sense. We have an affordability crisis in large parts of the country. In these types of cases, people either stay in the basement (of their parents) but they definitely don’t buy a house. We know in the United States for sure this happened.”
Infrastructure in cities has not kept pace with density, as evidenced by some Toronto condominium developments posting signs warnings parents that their children might not be able to get into local schools because of overcrowding.
As Bull! Bull! Bull! points out, that’s not really a big deal because Vancouver isn’t a family town anyways:
that’s ok. young ppl can live in condos, ride bikes, instagram their breakfast, experiment with facial hair, smoke lots of pot and generally act like they never moved out of residence. (showers are optional). they’ll be happier anyways.
Read the full article here.
ING has released the results of a survey they did showing that 3 out of 10 retired Canadians ended up having to return to work to pay bills.
Many retirees simply hadn’t saved enough or underestimated the cost of living.
The surveys portray a notable disconnect between Canadians’ expectations of life after the workforce and the reality of the cost.
ING Direct said that respondents wished they had found more ways to save for retirement, that they had started saving earlier and hadn’t “spent money so mindlessly.”
“The reality of retirement for many Canadians is a sobering reminder that you can’t put your financial future on the back burner,” ING Direct president and CEO Peter Aceto said in a release.
“Among the many other financial priorities we face during our prime working years, we need to make sure that retirement planning doesn’t get overlooked.”
So how are your retirement plans dear reader? Are you betting it all on a house in Vancouver? Are you just starting out and saving and investing, or are you finding it difficult to put enough aside for your golden years?