Are Canadians under 30 screwed financially? Kurt Rosentreter thinks they are. Defined benefit pension plans are disappearing, house prices are high, and the under-30 set are not living within their means. Canadian Capitalist adds his fear that the Old Age Security and Canadian Pension Plan programs may not have anything left in the cupboard by the time twenty-somethings reach retirement. As he puts it:
“The effect of retiring Baby Boomers on public finances is going to be akin to a swarm of locusts moving through a field of crops. Today’s retirees can count on receiving benefits from Old Age Security and Canada Pension Plan. 30-year olds have no such assurance and may find that they are left to fend for themselves.”
I could add another point. There might be nothing left either of the housing market once the Baby Boomer “locusts” have moved on through. Many have substantial portions of their net worth tied up in their houses, and will be selling to generate funds for their retirements starting over the next 10 to 15 years. This downward pressure on house prices could contribute to reducing appreciation in house values for the under-30s – and possibly be as much a source of financial insecurity in their old age as the dearth of pension plans and government benefits.