The dark side of the boom

… Canadians over all are actually doing pretty well at saving. Despite low interest rates, the national savings rate has averaged 4.6 per cent since the global financial crisis, more than double what it was before the crisis. “We’re saving a lot more than we used to save, even though people think we’re saving less,” said Fred Vettese, chief actuary at the benefits consulting firm Morneau Shepell. “It’s kind of like crime – people always think crime is going up, and they always think that savings is going down.” Mr. Vettese doubts young homeowners are doing much saving at all, and he’s okay with that. In his forecasting, he expects people to start putting money away for retirement only at the age of 35. “As long as people save fairly diligently between 35 and 65-ish, they’re going to do fine. It’s when they start saving at 50 that they have a problem.”… 

Read more on the Globe and Mail.