E's parent's, successful baby boomers who recently retired felt that after 10 yrs of working, E ought to have more assets, more vacations, more real estate.
After all, E's parents were starting to peak in their careers and already had a family and were spending weekends on their boat by then. In fact, they were looking to buy land to build a cottage.
I'm glad they weren't my parents because I could already feel my blood get warm. I don't feel that this is a valid comparison. Here are some differences we came up with.
- E's parents never had to attend university to secure their corporate and government jobs.
- A base university (or college in the US) education without living on campus is still going to cost a pretty penny. As E is paying for their education themselves, they graduate with debt.
- You couldn't get E's parents' jobs nowadays without a post secondary education and be totally bilingual.
- An obvious point is the pension. E's parents, as they never had to save because they knew they had an iron clad fully indexed pension, were used to spending what they made so they felt that if you made "x", it meant a certain lifestyle should ensue.
- E's parents do not know what it means or how much they would have had to put aside to create what they are enjoying as a pension. Their 6 figure pensions each are worth millions.
- Had E's parents not have a pension, they wouldn't have been able to afford the lifestyle they have become used to.
- Job security and loyalty isn't the same anymore. It is hard to find someone who is a younger adult who feels they are going to stay or be able to stay working for the same company for the rest of their lives.
- In Canada, most jobs are contract ones now -- no benefits. Extended health care insurance cost money.
- Of course there is the whole real estate growth aspect. E's parents' home benefited from the capital appreciation over many decades so now it is worth 5 times what they paid for it. Great news though not wealth they had to build with their own 2 hands.
- E lives in the city I wrote about yesterday and the home I featured is in the price range of what they have bought and also in the range of what E's parents home is worth. It is a different reality to buy a home in current dollars with current income vs. having a home rise to that dollar value. E's parents have never had to pay that much for anything.
I'm sure after we left, the debate continued. I cannot imagine being able to spend most of our take home monies on anything we want and know I'll have even more to spend in retirement.