Unless contemporary capitalism can transform itself (unlikely) or until a
socialist alternative is found, the operative message to young adults is this:
"you will never retire - you will work until you are no longer able at which
time you will die." This is what the malefactors of great wealth want, and
they will have it unless we say no.
Look back 40 years at the wage then and now, and what stuff cost then an now.
Than a hundred thousand is like a million now.
There is probably a grain of truth in saying only the wealthy will retire and
capitalism works against you. But you can't blame 'the man' for
all of it. He's not taken your choices away; he's just enticed you
with easy money and shiny toys and poor habits. You can still save and invest.
Those options are available to all. If you don't, why not? You don't
have to own new everything, and indeed don't have to own much of anything
for a long time. If you're 22 and making payments on a big pickup and rent
to own furniture, I don't owe entitlement to your claim that you can't
save money. Yes, I do know people in those situations. Don't complain that
social security won't be there for you. Plan for that outcome. Learn to
live frugal now; it will serve you well all your life.
This is a good article and it covers most of the key points. One of the issues
is education. Retirement planning and saving/investing should be taught at an
early age and ingrained in everyone. An area to focus on is developing multiple
streams of income for retirement. People should stop thinking about Social
Security as the only or primary source of income once retired. Also use the
retirement information available on the web. Most is free. I recently found the
site Retirement And Good Living that provides information on finances, health,
retirement locations, part time work and also has a great blog of guest posts
from around the globe about a variety of retirement topics.
I think these kids need a real job first
Contrary to the opinions of some (marxist, I'm looking at you), it is
possible for most people in the U. S. to save for their own retirement,
especially when starting early. What is required is a little education and a
lot of self-discipline.Learn to live within your means, and invest
for your future. Don't listen to the nay-sayers. No one is responsible
for your own future but you.
Unless the market returns to normal there is no way that working people today
can possibly save enough for retirement. The markets are basically flat for over
a decade. The NASDAQ market is still 20% from the highs of 2000. If a young
person was lucky enough to have a job and start investing in 2009 at the market
bottom they have done well, but I don't know many young people who have any
money to invest at this time. They don't make any money. $30,000 is
considered a good starting salary nowadays for college grads so if they invest
all after tax income I guess they could have done okay, otherwise they have not
done well. Compounding interest over time is nice, but it only works if you
already have considerable assets. The nation must regulate business and force a
return to traditional pensions where money is set a side and managed for people.
Retirement financing is too complicated for the average American nowadays.
To LA Mormon- Nonsense. I started some savings, around $50/month in the
mid-70's - every month through Auto Investing 9 then you don't think
about it). But gradually increased it, even after having our 6th child - now
this was a government job, where I was making around $18,000 in those years.
Every gift from my parents for Christmas went into the account (of a few mutual
funds). The Fed Government also pressured employees to buy US bonds regularly
which I did. After our kids started leaving home, investments were increased,
including 401K to the max, matching my next employer (private company).
Accelerated our house payments and paid it off 5 years ago. Spread my
investment to careful investing in individual stocks + stock funds. Now into
the mid-70s, have a very comfortable retirement, with a new worth well over $1
Million. Went on vacations trips with our kids, visit distant parents, etc.,
but gave up virtually nothing worthwhile. I'd rebut more of your points
if I had more space. Good luck, you'll need it.