HSBC survey: Retirement savings not a top priority

Read the following article.

Two thoughts come to mind; we have one hell of a crisis coming at us in twenty years or so and these excuses are pure BS.  If these folks are counting on Social Security they are going to have a rude awakening because just to keep Social Security going as is will require higher payroll taxes (giving them less money to spend) or lower benefits (giving them less money to live on if they ever can retire).

Clearly being unemployed can hurt the retirement cause temporarily, but beyond that ones lifestyle needs to reflect income after saving, not before. Yes, that means you may not be able to afford certain things, but you don’t put those things ahead of saving. Many Americans have a distorted set of priorities and definition of affordable. Too harsh? Ask older Americans how they lived and managed to survive.

What’s your opinion?

Eighty-one percent of working-age people said that saving for retirement is not their main priority, according to HSBC’s latest annual The Future of Retirement survey.

According to the survey report, the global economic downturn has had the greatest impact on pre-retirees’ ability to save for retirement. Thirty percent of those surveyed said the global slowdown has had a direct effect on their ability to save; 27% of said becoming unemployed has affected their ability to save for retirement; and 27% cited mortgage obligations as an impediment to saving for retirement.

Shockingly, one-quarter of all pre-retirees said they are not currently — or do not intend to start — saving specifically for retirement. And 20% of those nearing retirement (ages 45 and older) indicated they are not now saving and do not intend to save for retirement.

via HSBC survey: Retirement savings not a top priority – Pensions & Investments.

3 comments

  1. Entitlement – the essence or bane of today’s economic situation. Stating that 25% of pre-retirees do not save for retirement. Is it, perhaps, they can not save for retirement because they are living hand to mouth or need to supplement their income with subsistence programs. Many are working at two or more part-time jobs paying minimum wages and having their spouse or significant other working also.

    These are not slackers by any means – they are just stuck in life and unable to afford the basics in life. Yes, they have cell phones, eat fast food, have limited health insurance (usually with a very high deductible) and carry minimum coverage on their cars with 150,000 miles on the odometer unless they are fortunate to receive help from a family member. They look at life differently than we did because they can not see that better life so they apply the what the hell you only live once attitude and try to make the best of it.

    In a near-by state they banned pan handlers at stop lights begging for money. But yet when they are picked up by a local shop owner and given an opportunity to get clean clothes and train for one of these minimum wage jobs, they quit in a few days. Their reason? They can “earn” more pan handling and living off food shelters than they can at a decent paying job. They believe they are entitled to hand outs and free-bees. Our government and liberals created these entitlement programs and there is a culture out there saying – Why bother – no one cares about me so why should I work. If I am sick and have limited or no insurance – the community will pick up the costs.

    As many of us raised in the late 40’s through the 60’s learned – Life is not cheap and if you want something bad enough you work for it. Farmers are always looking for hard workers, Major corporations are willing to train and hire good workers but many feel they are entitled to all that life has to offer – at no cost.

    The rhetoric above and my comments will not solve the problem of saving toward retirement – it in fact will probably cause some who read it to say “What the Heck why bother” but as we all know that is not our intent. I liked the blog about saving your pocket change and watching it grow much like that guy who hoarded string (chuckle) and ended up with a 25# ball. Maybe sharing that example will give them hope and encouragement to begin saving small and watching it grow over time.

    Make a positive difference in someone’s life today.

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    1. Only you would remember that ball of string. LOL. Clearly there are people at and near the bottom rungs that can’t save and they will always be there, but that is not who we are talking about. We are talkkng about middle income people who set other priorities and make poor life decisions.

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      1. I know too many people of all income levels that live paycheck to paycheck by choice. They buy that third 54 inch flat screen TV, all have smart phones, go out several times a week. The ones I know that are better off take vacations that I cannot afford. So yes I blame them for the bailout I’ll be forced to do in my retirement. I also blame the government in their tax policies on savings and IRAs. In my company’s 401K I am allow to save $24,000 for being over 50, if I had an IRA $6,000 is the limit. I am lucky that I have access to a 401K and I am permitted to save more tax deferred. The government would prefer you to spend money to help the economy and buy stuff than to save. They rather you work yourself to death. Our economy depends on consumption and then throw away those things, not on consumers who save.

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