The next crisis

So, how much money do you have? No, better question… what’s your net worth?

The feds tell us the median household NW for middle-aged Millennials (35) who own a house is $457,000. The just-about-to-retire-at-65 crowd have a median net worth of $914,000.

That may sound like a decent wad to finance the years after your stop being employed, but… it’s not. Over 50% of the wealth Canadian households have is locked up in real estate. It is illiquid. It won’t buy dog food, gas or scotch.

The latest BMO retirement survey says Canadians think they need $1.7 million to retire comfortably on, which is $160,000 more than in the recent past. In BC that dream number rises to $2.2 million while in the Maritimes it sits far lower at $928,000.

As of now, few are gonna hit the mark.

Four in ten say they have basically given up and doubt they can retire in comfort. Like, ever. A third of Canadians save between nothing and 5% of their incomes. Another third save less than 10%. Two-thirds of people think it was easier for previous gens to save than it is for them. But at the same time, close to 30% of Boomers – believed to be then best-off among us – say only one thing will allow them to stop working. Yes, death.

Yikes. Scary.

But this is not a Canadian thing. Sixty per cent of Americans figure they will outlive their savings – despite the fact US Social Security payments are higher than CPP and OAS, with shelter costs and taxes generally lower.

A long-held western-world culture of saving is apparently gone. Governments have helped kill it off with ever-expanding social programs giving the impression of cradle-to-grave support. Surveys show about a quarter of us think public pogey is enough to live on forever, even though it amounts to less than $20,000 a year on average.

The bigger problem for most is the unaffordability of life, and the greatest hunk of that comes in the form of real estate. Our fetish for being property owners has pretty much nuked the ability to save that $1.7 million in liquid assets the Bank of Montreal is scaring you with. Not only are houses crazy-expensive to buy, but ownership costs are escalating fast. Insurance premiums and property taxes tell the tale.

Despite the fact most know public pensions were intended only as a supplement to retirement incomes, we still choose to bury net worth in an asset that costs, instead of pays. Almost 70% of Canadians own real estate, yet 59% of Canadians actively fear they will outlive their savings, says the CPP Investment Board. A shocking 39% of unretired people say they have never saved anything. Nothing. Zip.

There’s more, while we’re all depressed. Let’s get it over with.

The economy is barely growing, thanks in large part to what Trump has done to global trade and the unfair tariffs on key hunks of our GDP. Beyond that is the fear of what AI will mean. Yes, this technology will increase efficiency and productivity, but at the cost of jobs. Lately college graduation ceremonies have erupted in jeers when a guest speaker mentions AI. The kids hate it. With cause.

The Trump War has brought back inflation, which means interest rates and mortgage costs cannot go down. Unemployment levels have been snaking higher. Tradespeople I’ve been speaking with lately – carpenters, fencing guys, movers, HVAC people – say this is the worst economy for them in decades. Maybe ever.

It’s the stuff of a new retirement crisis, being molded right before our eyes.

Society faces some impossible choices, as debt and public expectations push us into the wall. As individuals, however, we can alter the future. It’s what this blog has been about for the last eighteen years. Choices.

Apparently for naught.

About the picture: “My sister follows your blog & she told me I need to send you some pictures of my shelties as to quote her “you’ve had it with the cat pictures” (lol),” writes Lisa. “I have 3 shelties. A mother & son and a new addition who is 10 months old. They all do dog sports. Riley my big male sheltie is a very rare dock diving sheltie. Shelties typically avoid water at all cost. Thank you for indulging my love of my dogs & for the great work that you do Garth.”

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/05/21/the-next-crisis-2/