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The average person....

  • 26-10-2011 5:48pm
    #1
    MeisterG
    Registered Users, Registered Users 2 Posts: 376 ✭✭


    Let's say we look at the average person's ins and outs over their lifespan as things currently stand.

    Let's make the assumption that for a state to ever become debt-free the average person must end up cash-flow positive. I.e. Born with no debt and leave with none/savings.

    So could the average person achieve this? Let's make some quick and dirty assumptions. Starts work at 25, finishes at 65 making say 30K p.a. on average.

    Total income 1.2m.

    Now say spends half of this (15K) whilst working (crude and on the low side). Net left 600K. Assume that for retirement they need 10k per annum to survive and live to 90. So that's 250k gone and 350k left. We assume the same for the first 25 years and we have 100k left to pay for all the community things such as roads, hospitals etc. (note there were no taxes earlier).

    It gets pretty tight doesnt it. Longer lead in times due to further education, longer pensioner times all reduce the 100k cushion. And this assumes the average person saves half their income. So the question is:

    Are we that fecked?


Comments

  • #2
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    Is that 30K after tax or before tax(es)

    MeisterG wrote: »
    Are we that fecked?

    You can always become a politician, selling socialism for the rest of your life nets you a nice pension(s) and a shot at being president I hear :D


  • #3
    MeisterG
    Registered Users, Registered Users 2 Posts: 376 ✭✭MeisterG


    Assume before taxes - the average person paying for themselves is fulfilling the role of social welfare, free education etc.


  • #4
    djpbarry
    Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭djpbarry


    MeisterG wrote: »
    Starts work at 25, finishes at 65 making say 30K p.a. on average.
    The average in Ireland at the moment is closer to about 36k, but is that an accurate reflection of what a person earns over their lifetime on average? The population average at a given point in time won't necessarily tally with what the average individual earns over their career. And 25's a little late, isn't it?
    MeisterG wrote: »
    Assume that for retirement they need 10k per annum to survive and live to 90.
    90 is a bit ambitious! Average life expectancy in Ireland is about 80.


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