We need to teach basic finance in public schools, probably starting at the junior high school level.
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Why aren't you saving money for retirement?
- Thread starter ActionableMango
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We need to teach basic finance in public schools, probably starting at the junior high school level.
I've been working for the UK Govt for nearly 30 years and have probably another 20 to go so my pension should be sorted. However the changes various Govts have already made to my pension over the last 30 years makes me worry that when I retire, what should have been more than enough to keep me in my dotage will have me struggling by the time I get there 
I recently looked at leaving my job and going contracting which pays really well but I worked out that basically each month I'd have to save whatever I wanted for my pension e.g. If I wanted £2k a month pension, I'd have to be saving £2k a month. It is scary and I can see why people bury their heads rather than face up to it.
I recently looked at leaving my job and going contracting which pays really well but I worked out that basically each month I'd have to save whatever I wanted for my pension e.g. If I wanted £2k a month pension, I'd have to be saving £2k a month. It is scary and I can see why people bury their heads rather than face up to it.
Well, that's two different things. A safety net is not the same as retirement. Retirement savings are usually pretty locked up.
Yes, but most Americans don't save much in terms of either. The stats are horrific. You'd think people would be more assertive when SS's future is problematic and pensions barely exist.
We don't? I went to public school and I remember being taught about the debt trap, compound interest, and how it important it was to start saving early as far back as grade school, and then again in either middle or high school.
I think the problem is that kids just don't take it seriously--I didn't. Another problem is that it only takes a day or two to get all the concepts across--so it's not really at the forefront of thought later. I think it is essentially up to parents to drill it into their kids and provide repetition.
I think everyone has had that particular information as part of other courses. What is needed is a comprehensive course tailored towards budgeting, investment. finding a job, getting a loan, etc. It should include a course long project simulating real life over a long period of time (including getting a job, getting married, having to support kids, etc). The students would have to budget their money including random events (sickness, broken down car, etc) and decide what investments to have.
To get all the information you need to successfully survive needs much more time then a day or two.
Oh I see, you are suggesting something more like a complete course, not just a topic. Yes I never had anything like a complete course. The basics were covered in school and my dad nagged me throughout life.
I had the same thing and most of what I ended up needing was self taught (trial and error
).
I retired at age 57 after working 35 years for a City government. I have a good pension, but medical expenses can really eat that up in a heart beat (no pun intended). Do everything you can now to prepare!
To answer the topic of the thread: "because I am worthless".
I will leave success and happiness to those who deserve it.
Nothing has gone my way for the first 40 years, I have no faith the next 40 would be any better.
Tonight was another night where I was shown what I am worth.
Retirement, an unrealistic future for me. Why bother.
I will leave success and happiness to those who deserve it.
Nothing has gone my way for the first 40 years, I have no faith the next 40 would be any better.
Tonight was another night where I was shown what I am worth.
Retirement, an unrealistic future for me. Why bother.
That is one thing I'm absolutely anal about is saving for retirement. I don't want to work when I'm old nor do I want to live where it's cold. I live debt free and don't have as much stuff as my income or especially out joint income would allow because I'm scared to death of credit.
I am not ashamed to say that personal finance was part of my Chemical Engineering capstone course.
Obviously we were working on other things simultaneously, but our professor had realized that personal finance was something we were never exposed to in ChemE. In addition, in our senior chemE lab (same professor), we had to schedule a time to take apart and put back together a rotating pump (dubbed the "tool test")
Im in a good employers pension with allows me to retire at age 50, on a reduced pension, or work till 55 on a full pension. Whilst the pension is a very good one, I do pay a large amount into it every month, which reduces the amount of spending money I have each month. I hate my job and so shall be retiring at age 50 (in 5yrs time), and I have been overpaying on my mortgage by almost £300/month to ensure its paid off by the time I retire.
My reduced pension wont be amazing, but will be sufficient, and I will top it up with some simple stress free part time work.
I simply dont understand why people who can afford to pay into a pension, choose not to. State pension age for me in the UK will be 67 at least, and theres no way I want to still be working up to that age.
Im even about to start a pension for my 10yr old son, to give him a good start.
My reduced pension wont be amazing, but will be sufficient, and I will top it up with some simple stress free part time work.
I simply dont understand why people who can afford to pay into a pension, choose not to. State pension age for me in the UK will be 67 at least, and theres no way I want to still be working up to that age.
Im even about to start a pension for my 10yr old son, to give him a good start.
They also need to have that pension AVAILABLE to pay INTO. In the US, pensions are becoming more and more rare, leaving people to self-fund/source retirement plans.
I can only speak about the UK, I have no knowledge of how it works elsewhere. Surely there are private pensions for them to pay into?
My generation doesn't get a pension, we're too busy paying for the previous generation's.
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Colorado has seen big increases in housing....it will not last...they never do......its called Boom and Bust.
Obviously you don't realize that in government we pay into our own pensions. More than anyone else.
The reason that defined pensions are going away is that they are unsustainable, care to guess why?
While I made have made massive mistakes financially, I am saving every single month because after being in debt over stupid stuff back in the 90s-early aughts, I paid that down rapidly and never want to be in that spot again. Saving as much as I can both in 401k and in my savings account every month.
Good for you for saving for retirement; so many people ignore it and the younger you start the better. I wish I had started at your age (I am now 64). However I want to warn you to be careful with the Fidelity calculator. My 401(k) is with Fidelity and their calculator shows that I am very well off so I started looking into their calculations. I have put in Social Security for myself and my wife but she is 6 years younger so won't be eligible to collect until later; however the calculator assumes we will both be drawing SS as soon as I retire, even though they know our ages. Also there is a general 4% rule that says you should not draw more than that (and often less) out of your accounts if you want your savings to last your lifetime; Fidelity seems to assume 6% or more in my case.
The net result is that they give an overly optimistic view of your retirement situation. At your young age that is not so worrisome but for somebody like me quickly approaching retirement it is concerning.
To answer the topic of the thread: "because I am worthless".
I will leave success and happiness to those who deserve it.
Nothing has gone my way for the first 40 years, I have no faith the next 40 would be any better.
Tonight was another night where I was shown what I am worth.
Retirement, an unrealistic future for me. Why bother.
Floris - there is a saying in investing that previous experience is not indicative of future success. Same thing applies to you. Just because nothing seems to have gone well your last 40 does not mean the next 40 will be the same. Heck, it took Edison 1,000 or so times before he found the right combination for a working light bulb! Maybe reading the following may help:
http://www.uky.edu/~eushe2/Pajares/OnFailingG.html
Even with little time to invest, you can still succeed with it. The only guarantee is if you don't try, you are guaranteed to fail. You're better than that, so pick yourself up and get it done!