John Doe and Jean Buck are employed in the same factory. Jean Buck is a line supervisor and earns 20 dollars per hour for a 40 hour week. John Doe is a line supervisor and earns 25 dollars per hour for 40 hours. John is paid 5 dollars per hour more because he, as a man, has more responsibility than Jean Buck.
Jean is a divorced mother of two while John is a married father of four. Johns wife has a part time job at Walnuts where she earns 12 dollars an hour and works 20 hours a week.
Jean Buck's take home pay after deductions for taxes, UI, CPP and medical is approximately 520 dollars. Jean qualifies for subsidized day care. With her after tax dollars Jean must pay food, rent, transportation, clothing and if there is money left over buy the kids gifts.
John Doe, with his man bonus, takes home 650 dollars per week after deductions and with his wife's salary of 240 dollars does not qualify for subsidized day care so they must schedule their day and work hours to minimize their dollar output. With his after tax dollars John must pay food, rent, transportation, clothing and if there is money left over buy the kids gifts. He is slightly ahead of Jean because his wife works. However both of their jobs are tenuous and rely on the economy remaining stable.
These are the people least likely to invest in a pooled pension. These are the people who represent the vast majority of those who have not prepared for their retirement.
This is life outside the cow pasture.
So tell me.... how does a farmer from the West reconcile his plan for a Pooled Pension Plan?
No comments:
Post a Comment