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08-28-2012, 12:10 PM
  #51
broinwhyteridge
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Join Date: Jun 2011
Country: Canada
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Quote:
Originally Posted by tarheelhockey View Post
None of the things you have mentioned so far, which might account for $10-30 a pop, have the slightest bit of relation to saving the $10,000+ a person needs to survive extended unemployment. You're talking about nickels and dimes here.

Do the math. Say a person is making $40k a year. Chances are they literally cannot afford to put away more than about $3k per year assuming they have no major life crisis during that year. $3k is roughly their pre-tax income per month. Being out of work for 4 months will cost them, pre-tax, about $12k.

Meaning they would have needed to put away money for the past 4 years non-stop with no major crisis causing them to tap into that reserve in order to survive a 4-month work stoppage. If it's more like 6 months, we're talking about saving non-stop since the last CBA was signed.

Get real. How many people can afford to save that much money for that long? And even if they did, they're facing the prospect of having that entire safety net consumed in one fell swoop, through no fault of their own. Meaning their next major life crisis is going to have no safety net.

Any way you look at it, unless they can pull from resources outside of personal savings, they're screwed.
I guess this person won't be able to retire either at any time (not that I don't agree with you - North America is based on almost everyone living beyond their means).

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