Seriously I wrote a long piece that got lost about why 401ks fail. They fail because people don't save in them. Think I'm joking? I think right now people are talking about how difficult retirement is. But the reality of the lack of pensions hasn't even started to hit. When? I think when the first of Generation X starts to retire we'll see truly what the 401k is worth. I think the majority of Baby Boomers still had pension. I don't think that's the case for Generation X (I'm one) and very few of my friends have pensions.
So the other day at lunch with my DK2 preschool friends and their moms the talk turned to retirement savings. A few women asked about talking to a financial advisor. They were wondering about retirement savings. These women were asking about Roth IRAs and investing 401k. I guess its good they were asking. But seriously?
They went and bought expensive homes and cars (denali, audi, benz, infiniti) but are now asking about retirement? I think we're in big trouble if people who supposedly are "educated" have no idea about retirement savings. I wanted to hit my hit head on the table because more than a few said "oh I leave it to my husband." Um okay, chances are hubby is as clueless as the wife. I don't think people who have no idea how to save or invest probably haven't been doing it.
And no I did not open my mouth, I couldn't. What could I say? That you should have thought about trying to save for retirement before you bought a house so it could fit in the budget? That it should work out before and not after when you put it so low on the priority list that many are in their 30s!!! without any or minimal. I haven't meet anyone I would guess has 6 figures in retirement and they've had pretty good incomes for a long time.
But seriously have you ever spoken up in a conversation when people begin talking about retirement and saving? I find that now that DH and I aren't working I shut my mouth even more. I've never been asked "how are you affording to live?" Only two people we've meet has asked me did you inherit a lot of money or the lotto? Nope. But no one has ever assumed or asked if I were mustachian and did we save a lot? Do we live frugally?
I think soon enough the real problem of 401ks and people not saving retirement will become apparent when the majority of retirees lack a pension. I don't think it's occured yet because many boomers have pensions, but it will.
Have you ever told anyone you were on a budget? Or how to save for retirement?
why 401ks fail
March 31st, 2016 at 05:35 am
March 31st, 2016 at 05:40 am 1459402807
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March 31st, 2016 at 01:42 pm 1459431738
My husband has always been self employed, so no pensions for either of us, ever.
It was up to us to save, even tho both our incomes were very low.
I just always put away a percentage of everything we made, every pay day, no matter how little.
March 31st, 2016 at 10:38 pm 1459463889