So thread has gone many OTs so I will add my .02 which is also a bit off topic.. I think a lot of being able to retire and live comfortably has a lot to do with cost of living. Keeping up with the Jones' is one thing but in the end being able to afford any lifestyle "Jones" or not will be struggle for many due to cost of living ( housing) increases. This really hit me today let explain.
I am an expat living in Germany and when I do homeoffice I have MSNBC on in the background.. Typical political discussion on how well the economy is doing now.. Discussion started with how the stock market is really no indicator of how the lower or middle class are doing as less than 50% of Americans dont have any hand in the stock market in way.. ( 401k, mutal funds etc..).. It was argued how great the economy is as lower incomes rate of increases has significantyl grown over the past years as other income brackets... that American Middle class families have an average 11,000 more in disposable income than a German family. And the political comment from the commentator was basically see how bad "socialistic" countries are... Which I had to laugh as I think many need an education on what socialism, capitalism, communism is.. Anywaysss... this statement, as being in Germany, raised my head and made me think.
I make significantly less than a person in the USA for the same job but live more comfortably mainly as cost of living is much lower. Another colleague worked in our NY office made 30% more and took that pay cut moving to Frankfurt. He states though he has less income now his standard of living is sooo much better as the cost of living is less. "Disposable" income is a funny thing. I assume MSNBC meant the true definition, income after income taxes... Yes American make much more have more "Cash" due to paying less taxes but what they pay to live is scary... What many American families for for groceries a month 500-800 dollars is what many germans pay for rent in a nice, safe, clean place.
So what I really wanted to say is that when I heard this I check rental prices for my old neighborhood back in the USA . For a while back in 2008 I rented my old condo - 1 bedroom 850 monthly rent.. I checked now for the same building and rates are now 1300-1400!!! I am not an expert, but that is a huge increase and I know my income from back then would not have increased that much unless I changed jobs... I am sure a lower skilled person wouldnt have that option.
I really don't have a point for all this rambling, but I would think it's harder for many to even try and keep up or plan for retirement when for some increases in cost of living are getting high..