Retirement Guaranteed income is a no-brainer – just don’t call it an annuity

If you want to read this article in full you’ll want to consider clicking the link below:
http://www.moneysense.ca/save/retirement/annuities/guaranteed-income-is-a-no-brainer-just-dont-call-it-an-annuity/
After world war 2 for the most part people voted for socialism in it’s many varieties, because humans needed Libraries to learn, labour was intensive and entitlements for the most part were nonexistent the concept of getting something for nothing made a whole lot of sense. In this modern world of abundance, where abundance could actually be a whole lot more if governments simply got out of the way, the many calls for an increase in entitlements although holding weight, isn’t holding the same amount of weight it once did.

Despite regulations, the free market has been able to produce prosperity, being able to bring the cost of goods down, the cost of living down while improving the lives of citizens. However what’s making life expensive in Canada are entitlements. There’s a lot of corporatism in Canada and the people suffering the most from corporatism are the elderly or those on fixed incomes. One of the main reasons health care costs are so high is because of regulations. As an example there are minimum wage laws, minimum wage laws cause prices to go up, recently Kathleen Wynne’s Liberals in Ontario raised the minimum wages, this helps government to collect more taxes on their tiered taxation system but it also causes health care costs to go up.

Minimum wage laws cost other things to go up also and these costs are permanent and can not come down. This is a government program that has an effect on those people dependent on the government to survive, this also puts a strain on the private sector and actually gives a boast income to low skilled workers, who otherwise wouldn’t command such pay for their services. To mitigate all of this the private sector makes cutbacks. How I’d explain this is the same way I’d explain why the public school system can’t hire more teachers. When there’s less money to go around less people can be hired and therefore less resource are purchased or people are replaced with machines.

As of 2018 there are a lot of health care related duties that can’t be done with machines, because of this there is no way to lower the cost health care and therefore especially in an economic climate like the one we’re experiencing in Canada it’s going to be extremely hard for people on fixed incomes to thrive financially. The reality is if Canada alleviated itself of this entitlement mentality people would save for retirements on their own, people would make different decisions with their lives, people would defer gratification and those that didn’t would, well be in the same position that they’re in now.

Guaranteed Lifetime Income is an interesting concept, as the author of this article describes “GLI is a no-brainer, at least for a portion of your retirement plans: the money you absolutely need to meet monthly living expenses in retirement.” who can argue with such a claim, especially when you look at the current fundamentals of everyday living in the welfare state of Canada, my rebuttal is; nothing is guaranteed and the more people have relying on the government the more we’ll have to incentivise people to want to immigrate here, because incase the author isn’t paying attention, birth rates amongst Canadians are down and as the private sector gets replaced with the public sector one thing that’s guaranteed to happen is rise, is inflation and a skilled labour shortage.

In the real world it’s not about god or bad it’s about trade offs.

Interesting times ahead.