Most People Alive Today Will Work Until They Die
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Published 2023-04-06
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Edited By: Andrew Gonzales
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Select Footage Courtesy of: Getty Images
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#retirement #personalfinance #howmoneyworks
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Most people alive today will work until they die. Retirement is the career professionals promised land. Study hard at school, get a good job, work hard your entire life, live within your means, invest diligently and you will be rewarded with endless free time in your final years. It’s not much to ask for, but to most people alive today it will only ever be a dream.
A Bankrate survey found that fifty five percent of Americans are behind on their retirement savings and ten percent don’t even know where their retirement savings stand. Like most things to do with personal finance the numbers are ever worse for young professionals. The national institute on retirement security reports that sixty six percent of WORKING millennials have NOTHING saved for retirement.
Even though two thirds of millennials work for an employer that offers a retirement plan only twenty percent participate in the offer. Millennials are between the ages of twenty-seven and forty-two. Many people in this group are at the peak of their careers so these reports can’t be attributed simply to young people just starting out in their financial lives.
But who can blame them? The financial firm Fidelity recommends that you should have at least the equivalent of your annual salary saved by age thirty, three times your salary at age forty and six times your salary by fifty to be on track for retirement. I like to think I am personally pretty good with my money. I have come from a career at an investment bank where I was earning a lot more than the average person my age and I still got nowhere near these numbers.
A higher income does mean the goals are higher since this is based on multiples of your income but it’s easier to save when you earn more too. If you are actually on track with these numbers, I am genuinely very impressed, let me know in a totally unverifiable comment in the comment section and I will give you an equally worthless love heart reaction.
But most people are well behind Fidelities recommendations, the NIRS found using the recommendations of financial experts only five percent of working millennials are saving adequately for retirement and everybody else is probably going to be working until they die. There are three big reasons for these alarming statistics. The first reason is all the obvious stuff.
Inflation is at a three decade high, millennials started their careers after the worst financial crash in a century, the cost of college is increasing eight times faster than wages, most young graduates are leaving school with five figure debts before they even start working, renting even a one bedroom apartment is now unaffordable everywhere in the country for someone earning minimum wage, and saving for a house is almost impossible in the expensive cities with good job opportunities.
A New Yorker with a college degree would need to commit to 7.5 years of dedicated saving to have enough to make a down payment on an entry level apartment. That dedicated saving can only start after they pay off their student loans which now on average takes twenty years. After they buy the entry level apartment, they then have a thirty-year mortgage to pay off. If this person started working at twenty two they would be seventy-nine years old before they were a debt free home owner in New York in an ideal scenario. Variables like starting a family, getting sick or earning less than the average college graduate would put them even further behind. And that’s just reason one…
So it’s time to learn How Money Works to find out why you will be working until you die
All Comments (21)
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I don't mean to brag but I literally have hundreds of dollars in the bank
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I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
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Man I can't wait to spend the majority of my life working a job I don't like, so I can enjoy life when I have trouble getting out of a bathtub. This system is so cool!
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Well, the cheapest .410 shotgun I can find is 159.99, and the shells aren’t that much more, so I technically have enough money to retire for the rest of my life.
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One of my college professors told the entire class my generation would not be able to retire and that social security benefits probably wouldn't exist by then anyway, so we shouldn't count on them. As a millennial, I think he's correct for many of the people in my generation. I'm sure some folks will figure it out. A lot of people won't.
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As someone with an income of 0, I am both infinitely ahead and infinitely behind on my retirement savings.
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I remember some politician poking fun at young people who thought they could do better for their own retirement rather than pay Social Security, "oh, sure, you can say that now, but when you get there, you'll waddle up to that window expecting something" My thought was, "you don't understand. I'm not convinced there's going to be a window left to waddle up to."
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seeing people afraid of not being able to retire in a country where you get laid off at 35 if you are not atleast at manager level seems depressing
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Im on track at 27, but I can’t imagine being any more miserable. I don’t see my family anymore or have friends/hobbies, all I do is work.
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I'm actually on track for retirement based on my salary and age (40). But, that's ONLY because I got incredibly lucky and inherited (and sold) land from one of my grandparents in a rapidly gentrifying area of my city. That accounts for 90% of my savings; without that incredibly good fortune, I would be completely screwed.
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People make fun of folks who play video games a lot in their childhood years or early 20s, but they fail to consider that maybe they're just squeezing as much enjoyment out of life while they still can, because they're painfully aware they won't always be able to get on.
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If you have the choice to have a good life until you're 70. Or have a good life the last 10 years where you can barely do anything. Don't pick the last 10 years. They are over fast. You won't suddenly do everything you've always dreamed of your whole life.
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My spouse and I actually at those goals, but it's only because we're in our 40s and we still lives more like a college students than career professionals. He had an obsessive fear of homelessness so every spare cent he makes goes to savings or debt repayment instead of lifestyle creep, and I joined along with him. This is only possible because we could not have kids.
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A big factor for a lot of people is job instability. The rate you have to save at to make up for months or years you may be unemployed to to market fluctuations gets scary really fast. And who has the willpower to immediately plow 30% of their income into retirement after being unemployed for 4 to 6 months? Everyone just wants to celebrate and destress after that.
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Enjoy your life, it can come crashing down no matter how much money you make. We need to come together instead of battling each other for finite resources that hardly add value to our lives.
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This is only because workers refuse to work together and unionize. People faught and died to force companies to pay pensions to their retired workers. People need to realize that ceo's of major companies will never act benevolently toward their employees.
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Recent 40yr old here. I'm not even close to saving what is recommended but I gave up on the traditional idea of retirement long ago, at least 15 years ago. Instead of wanting to retire and just live on a budget doing nothing, I transitioned my mindset to "what would I enjoy doing until I can't do anything?" Retirement for me looks like operating a gokart track and a few rental properties in a low cost country.
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Being a nerd, hate traveling, few friends, no partner nor kids, love the current job, don't own a car and go cycling instead. Now I'm ahead of my retirement plan, although I'm pretty sure a lot of guys would call this a miserable life.
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The way he says "So it's time to learn how money works to find out why you will be working until you die." with a standard cheery narrator voice is quite something.
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It has been true even for my parents' generation. It's just too bad they did not realize they were scammed until way past their prime. They still tried to convince me to stick to a company for 40 years to get good pension when they were still working, but that all changed when they finally "retired" and received their pension and realized they would still need a dual income from two kids just to survive, because their dream 'pension' is literally peanuts. It may have been useful 40 years ago, but right now it's literally enough to buy grocery for 3 days, or maybe some packs of peanuts for a month.
