Observations on life

What are they thinking?

I was listening to a radio financial advisor who commented that when he spoke with many younger people about saving for retirement they said they were not really concerned because they could rely on Social Security. Does this represent the financial savvy of the younger generation?



5 replies »

  1. The young see their parents and other family members not saving for anything, so why should they save for anything. I did not save anything for retirement, but my average income per year was $15,000. What I did was serve 20 years in the USAF to get a retirement check. I also, never allowed my spending to get out of control. I now live in Montana on $20,000 per year. When I start SS benefits at 62 I will be able to save $10,000 per year or more. So, I will be saving in retirement. Why save now? So, when I get into my 80’s I will not have any money issues, no debt for anything at all, cash is king. I will admit I tell my 4 children to save for that rainy day and retirement, because you never know what will happen. At 60 now I realize I lived in a better time in my 20’s the $8,000 I made in 1980 had the buying power of over $23,000 today. SS benefits just will not cut it, unless your expenses are very low, not the case for most people today. Price inflation is going to be the worst thing for the millennials and if they fail to save, they may be the first generation to live worse than their parents in retirement. No matter what the politicians do.


    • Have you considered that given your correct planning for the future that not taking SS at 62 and letting it grow so it provides a higher income in the years you will need it most might be worth considering?


      • I have looked at the numbers and since you do not know how long you are going to live, the $110,000 in SS benefits from 62 to 70 can do more to aid my standard of living, than waiting for the larger benefit.
        It would take until age 80 to get the $110,000 back. With life insurance and investments from age 62 to 80 I feel my wife and family will do ok. If I live past age 80 things should be ok, also.


  2. They are not thinking. They WANT TO BELIEVE the politician’s, free healthcare, free college, increase social security benefits when you retire.

    There is a big difference between increase benefits and that social security replaces pensions which to date no politician to my knowledge has said. Even politicians have tried to enhance the 401k plans to make it easier to save.


  3. “… a radio financial advisor who commented that when he spoke with many younger people about saving for retirement … ”

    Obviously, an idiot who is looking to add assets under management and push up her/his fee revenue. Only an idiot talks with “young people” about retirement when most of them should be focused on financial objectives of getting out of debt or accumulating wealth (and not sinking deeper into debt).

    As many 65+ boomer’s know, today’s version of retirement is not the retirement we “foresaw” in our 20’s. Hey you boomers, remember the “retirement” of your great grandparents and grandparents? Most of them worked all their lives until they were physically spent, and then “retired” to a sedentary lifestyle until death – work until early to mid 60’s then die by the early to mid 70’s. Perhaps you forget all of the older Americans living in poverty in the 1960’s and 1970’s? In the 1960’s, 1/3 of all American’s age 65+ were living in “poverty” as officially defined, and by 2015, it was less than 9%. People know it can change again, they are just banking on politicians remaining the same.


    And, even if Social Security benefits are cut by 25%, as the funding trends suggest, Congress will likely take action to cap the highest benefit payouts, then in turn, the next highest and the next highest until funding is sufficient. Also expect them to have an eye on who has wealth, creating a new welfare system so that those whose income is < poverty, can get added, supplemental income. So, no reason not to expect that social security benefits will likely be sufficient, with other government programs, to continue to lift most of the elderly (who fail to save for retirement) out of poverty. We have 80 years of history of politicians buying votes with the Social Security system – and you expect it to change?


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