The main reason so many people don't save for retirement (supplement, divorce)
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No, thanks. Not a big fan of the United Way, and how they incentivize employers to require UW "voluntary contributions" from employees.
At the last employer who tried this, I was told, "We pay you well and we expect you to give part of it to the United Way." The "to make us look good" was implied, rather than stated.
Any study the UW does should be automatically suspect.
It amazes me how little a lot of people earn. I make a little over $60,000 annually. After taxes, insurance, and a 12% retirement contribution, I net a little over $3,000/month. Honestly, it does not seem to go that far.
The mortgage is ~$550/month. Power is around $100. Internet and cable are close to that. Water and sewer is in the $60-$80 range. The car payment is about $300/month. The gym is $40/month. The cell phone is about $60/month. Car insurance is about $60/month. There is always something to be paid. That's not counting the steady drumbeat of stuff that breaks, maintenance on things, medical expenses, etc. I'm by no means stretched but I don't have the extra a lot of locals think $30/hr brings. I have some fans and other parts on my computer that are physically wearing out. I'm just replacing the failing components, not building a new machine. I don't have the extra $1,500 or so for the computer I want to build right now without it going on the cards.
$60000 is huge money to some folks. Don't ever think of retiring until mortgage is paid off. Buy clean used car for cash, no cell phone, no gym, eat out once in 3 months. Car insurance depends on where you live and who drives the car. Kids are grown and gone makes a difference. Just wish they hadn't gone so far away.
Basically, don't have fun for 25 years, then enjoy!
You are talking about a much smaller minority of people than the ones would literally cannot afford to save. The people you are talking about exist, but too often people use their existence to justify not helping or severely limiting benefits for the much larger group who truly can't afford it.
Is the reason they can't afford to save because of the decisions they have made? That is true in many more cases than people would like to admit. You see it every day on CD where people put themselves behind the 8 ball. I'm not talking about people that buy things they don't need. We all do that to a certain extent.
No, thanks. Not a big fan of the United Way, and how they incentivize employers to require UW "voluntary contributions" from employees.
At the last employer who tried this, I was told, "We pay you well and we expect you to give part of it to the United Way." The "to make us look good" was implied, rather than stated.
Any study the UW does should be automatically suspect.
Methodology and sources of data for those that would like to make an informed decision about the validity of the study:
Yep, you have to decide you are going to start saving from day 1 of your working life, or soon thereafter. Have it taken off the top before you ever see it and, like I did many times, when I got a raise, I added that to what was taken off the stop for savings.
Live within your means and plan for your retirement. And I don't mean strictly Social Security, which is another thing I see a lot of. The other thing I see, unfortunately, is the grandparents financing or actually raising their grandchildren because their own children (the parents) can't or won't. So there goes their retirement!
Is the reason they can't afford to save because of the decisions they have made? That is true in many more cases than people would like to admit. You see it every day on CD where people put themselves behind the 8 ball. I'm not talking about people that buy things they don't need. We all do that to a certain extent.
Bad decisions is not the reason for the largest group of people who don't save for retirement. The study and other sources of data back up my opinion; it's not based on just anecdotal information.
Bad decisions is not the reason for the largest group of people who don't save for retirement. The study and other sources of data back up my opinion; it's not based on just anecdotal information.
Median pay (50% of workers earn more, while 50% earn less) is $18 an hour. It hasnt changed in decades adjusted for inflation. While the economy has boomed during that time, the typical worker has seen no wage gains, unlike the situation in the 50s 60s and 70s when worker productivity and wage gains went hand in hand.
What also goes hand in hand is the decline of labor unions and workers getting the short end of the stick.
Bad decisions is not the reason for the largest group of people who don't save for retirement. The study and other sources of data back up my opinion; it's not based on just anecdotal information.
Let it go. Its easier to blame the supposed mcmansion.
LOL i vlounteer with the urban poor in Camden. Some body forgot to tell them they lived in a mansion.
One of my coworkers just told me he'll be working until he's 70. A nasty divorce from his first wife and a second wife who battled cancer has knocked out any saving he may have had.
Last edited by eliza61nyc; 05-18-2018 at 12:01 PM..
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