MSE News: Generation 'not saving for retirement'

in Savings & Investments
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  • wiggerswiggers Forumite
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    So they're encouraging us to put more money into pension schemes so they can cream off their extortionate charges for doing !!!!!! all. True you do get a big chunk of tax back, but it immediately starts getting eroded by fees and inflation. Great.
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  • RandomGuyRandomGuy Forumite
    31 Posts
    Not saving for retirement??!

    With rampant inflation, frozen wages and escalating food, fuel and energy bills not to mention astronomical house prices (the main cause of all our current economic problems!!) many people can barely afford the basic cost of living TODAY let alone find the money to save for the basic cost of living in the future.

    "A generation of Britons are facing a cash-strapped retirement as they refuse to save more" - "Refuse"! It would be funny if the situation wasn't so terribly dire.
  • k6chrisk6chris Forumite
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    bendix wrote: »
    Generation can still afford one or two overseas holidays a year, luxury consumer goods and meals out regularly.

    It's a question of priorities, isnt it?

    Well said, bin the iPhone contract and put the £40 a month into some form of long term savings. Cancel your Sky subscription...don't eat out...wear your existing clothes....the list goes on.

    I am sure there are some people who really find it difficult to save, but I think most of it, certainly with many children from families that are comfortably off, is that they expect 'comfortable' to come for free, part of the 'base package'. It does not, so start saving for it now!!
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  • dunstonhdunstonh Forumite
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    RandomGuy wrote: »
    Not saving for retirement??!

    With rampant inflation, frozen wages and escalating food, fuel and energy bills not to mention astronomical house prices (the main cause of all our current economic problems!!) many people can barely afford the basic cost of living TODAY let alone find the money to save for the basic cost of living in the future.

    "A generation of Britons are facing a cash-strapped retirement as they refuse to save more" - "Refuse"! It would be funny if the situation wasn't so terribly dire.

    All of which are pretty much lame excuses from people that are looking for an excuse to make them feel better about their poor provision.

    This was not the first recession. The country has had worse periods for people. Most are financially better off than they were in the 70s and 80s. Recessions happen virtually every decade. a financial crisis of one sort or another happens on average every 7 years (been 8 since 1956). So, how did people manage it then and not now?

    The consumer society and "I want it now" mentality mean that many are more prepared to spend £50pm on their mobile phone or £65pm on sky or whatever consumer good they have chosen to go for than they are to save or put money aside.

    Anyone paying less than a tank of petrol into their pension is not taking it seriously. Anyone who pays more on their mobile phone bill has got their priorities wrong.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Aytoun27Aytoun27 Forumite
    84 Posts
    dunstonh wrote: »
    All of which are pretty much lame excuses from people that are looking for an excuse to make them feel better about their poor provision.

    This was not the first recession. The country has had worse periods for people. Most are financially better off than they were in the 70s and 80s. Recessions happen virtually every decade. a financial crisis of one sort or another happens on average every 7 years (been 8 since 1956). So, how did people manage it then and not now?

    The consumer society and "I want it now" mentality mean that many are more prepared to spend £50pm on their mobile phone or £65pm on sky or whatever consumer good they have chosen to go for than they are to save or put money aside.

    Anyone paying less than a tank of petrol into their pension is not taking it seriously. Anyone who pays more on their mobile phone bill has got their priorities wrong.

    If you haven't got it you can't save it! I'm not in the company pension scheme because I can't afford to be, all my wages go on day to day living expenses. I don't have a luxury lifestyle either, last foreign holiday 1999, last UK holiday 2005, £10.00 a month on a pay-as-you-go mobile for emergencies, got rid of Sky TV in 2007, and I don't have a car. Any savings I do manage to get together go on exciting things like getting the gutters repaired and replacing the washing machine. And I'll bet that I'm not the only one in this position, for a lot of people it really is a case of can't save, rather than won't save for retirement.
  • bendixbendix Forumite
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    Aytoun27 wrote: »
    If you haven't got it you can't save it! I'm not in the company pension scheme because I can't afford to be, all my wages go on day to day living expenses. I don't have a luxury lifestyle either, last foreign holiday 1999, last UK holiday 2005, £10.00 a month on a pay-as-you-go mobile for emergencies, got rid of Sky TV in 2007, and I don't have a car. Any savings I do manage to get together go on exciting things like getting the gutters repaired and replacing the washing machine. And I'll bet that I'm not the only one in this position, for a lot of people it really is a case of can't save, rather than won't save for retirement.

    Do you smoke? Do you eat out? Do you buy lottery tickets? Do you have hobbies?

    Life is about making choices. I don't believe for one second that people aren't able to put money away for their retirement: we have forty years of working life to plan for it, and if you use those forty years it is a tiny commitment.
  • bendixbendix Forumite
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    dunstonh wrote: »
    The consumer society and "I want it now" mentality mean that many are more prepared to spend £50pm on their mobile phone or £65pm on sky or whatever consumer good they have chosen to go for than they are to save or put money aside.

    Anyone paying less than a tank of petrol into their pension is not taking it seriously. Anyone who pays more on their mobile phone bill has got their priorities wrong.

    I don't think I've ever heard the issue expressed more eloquently and with such force as this before. Well done dunstonh
  • J_i_mJ_i_m Forumite
    1.3K Posts
    Generation 'not saving for retirement' because generation 'can't bloody afford it'!

    Indeed, bang on!

    It's all very well critising people for not doing more to save for their retirement... BUT when you're already on a low income and are struggling to meet paying PAYE, NI, Pension, Rent, Council tax & all the other generic essential living costs, it's almost impossible to save anything.

    People who come out with rubbish are looking from it upon a cushioned existence from a very comfortable income, they're a bit removed from the reality of other people.
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  • ViolaLassViolaLass Forumite
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    J_i_m wrote: »
    People who come out with rubbish are looking from it upon a cushioned existence from a very comfortable income, they're a bit removed from the reality of other people.

    Unless you personally know every person who holds this view then this is a generalisation. Turning the people who think you really do need to save and should be able to manage it in to the bogeyman will not improve your situation.

    I don't have a cushioned existence - I don't even have an income at the moment but you can bet that the moment I do, I will be putting money aside again.
  • ReaperReaper Forumite
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    Aytoun27 wrote: »
    I'm not in the company pension scheme because I can't afford to be, all my wages go on day to day living expenses.
    I don't know your circumstances or details of your company scheme, but with most company schemes matching your contributions up to a certain level plus tax relief on what you pay in you are missing out on a lot of free money by not taking part. I'm sure that is money you can't afford to throw away.
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