MSE News: Generation 'not saving for retirement'

in Savings & Investments
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  • chim289chim289 Forumite
    14 Posts
    Generation 'not saving for retirement' because generation 'can't bloody afford it'!

    My thoughts exactly. I'd love to save for retirement but when your outgoings pretty much match your outgoings and you have to go without basics to afford emergencies then there's not really much opportunity to save really.
  • RandomGuyRandomGuy Forumite
    31 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.

    I save £1000 pcm which is 50% of my net monthly income. I've never had SKY, I've never bought anything made by Apple, I rarely eat out (only for birthdays, mothers day, etc), I don't have expensive hobbies, I don't buy new clothes, I shop at Aldi and Lidl, I've put myself through university twice using my own savings from work and student loans, which I also needed, and which I have repaid in full with interest.

    Can I afford to save any more for my retirement (I'm already paying in to a pension)? No. I can barely afford to live now. The £1000 pcm is saving up towards a house deposit. Only another 5 years of saving and I might actually be able to afford a 2 bedroom terrace. Look at me - I'm living the dream my friend!

    And a financial crisis every 7 years?? Of this magnitude?? Are you being serious?! You clearly have no idea what is going on.
  • edited 26 May 2011 at 4:35PM
    LokoloLokolo Forumite
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    edited 26 May 2011 at 4:35PM
    RandomGuy wrote: »
    I save £1000 pcm which is 50% of my net monthly income. I've never had SKY, I've never bought anything made by Apple, I rarely eat out (only for birthdays, mothers day, etc), I don't have expensive hobbies, I don't buy new clothes, I shop at Aldi and Lidl, I've put myself through university twice using my own savings from work and student loans, which I also needed, and which I have repaid in full with interest.

    Can I afford to save any more for my retirement (I'm already paying in to a pension)? No. I can barely afford to live now. The £1000 pcm is saving up towards a house deposit. Only another 5 years of saving and I might actually be able to afford a 2 bedroom terrace. Look at me - I'm living the dream my friend!

    And a financial crisis every 7 years?? Of this magnitude?? Are you being serious?! You clearly have no idea what is going on.

    You could always save less for a deposit and more into pension.

    Why £1000 ALL on house? Why not £800 for house and £200 in pension? Why do you NEED to buy a house?

    And clearly you don't have a clue rather than Dunston. Yes there have been drops on average around every 7 years - yet everyone has coped up to now haven't they!?

    You also do not NEED £60k for a house deposit. What you NEED is to not live with very little money in retirement. YAY for getting a house - then what happens when you're retired and something goes wrong with the house? Well you can't afford to repair or anything because you decided not to make pension provisions.
  • RandomGuyRandomGuy Forumite
    31 Posts
    Lokolo wrote: »
    You could always save less for a deposit and more into pension.

    Why £1000 ALL on house? Why not £800 for house and £200 in pension? Why do you NEED to buy a house?

    And clearly you don't have a clue rather than Dunston. Yes there have been drops on average around every 7 years - yet everyone has coped up to now haven't they!?

    You also do not NEED £60k for a house deposit. What you NEED is to not live with very little money in retirement. YAY for getting a house - then what happens when you're retired and something goes wrong with the house? Well you can't afford to repair or anything because you decided not to make pension provisions.
    Are you a financial advisor? Can I take your card as I would like to book an appointment.
  • LokoloLokolo Forumite
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    RandomGuy wrote: »
    Are you a financial advisor? Can I take your card as I would like to book an appointment.

    HA. No I am not.
  • edited 26 May 2011 at 4:48PM
    Graham_DevonGraham_Devon Forumite
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    edited 26 May 2011 at 4:48PM
    Lokolo wrote: »
    You could always save less for a deposit and more into pension.

    Why £1000 ALL on house? Why not £800 for house and £200 in pension? Why do you NEED to buy a house?

    And clearly you don't have a clue rather than Dunston. Yes there have been drops on average around every 7 years - yet everyone has coped up to now haven't they!?

    You also do not NEED £60k for a house deposit. What you NEED is to not live with very little money in retirement. YAY for getting a house - then what happens when you're retired and something goes wrong with the house? Well you can't afford to repair or anything because you decided not to make pension provisions.

    However, buying a house will allow you to save more later on, rather than paying rent which will go up each year.

    I was surprised how little my pension took from my wages, compared to the gain. However, those leaving college now are told to pay for uni, save for pensions, save for house deposits.....and woe betide them should they decide to have a holiday.

    On a personal level, I think theres a fine line between existing and living. Reading some of these comments, it seems some are telling others merely to exist. Don't get me wrong, pensions are extremely important. But we are hitting a crisis point where those who don't have assets are getting poorer and poorer, while those have assets want everyone to shelter them.

    Just look at the cost of housing, whether it be renting or buying. Starting out now is incredibly hard, and going to get harder. People do need to live their life and enjoy some experiences, rather than bunker down for 40-50 years in an existence. It's all moderation.

    We'll probably never see the lifestyle the previous generation have just lived through. Free care, lower retirement age, asset prices rising beyond expectations, cheap credit etc.
  • RandomGuyRandomGuy Forumite
    31 Posts
    Lokolo wrote: »
    HA. No I am not.
    You don't say.

    Mortgage approvals fall to a new low... and economists warn it could get worse
    dailymail.co.uk/news/article-1391000/Mortgage-approvals-fall-new-low--economists-warn-worse.html
    The average home in England and Wales costs £161,000 – and the average buyer puts down a 26 per cent deposit.

    This means a typical buyer must find a deposit of about £42,000 when they buy a home, an amount which millions of families could never afford.
    So I guess I was wrong - I only need to save £1000 pcm for 4 years instead - plus I'll have an extra £6000 to put into savings at an interst rate that's well below inflation. I can see that comfortable retirement approaching already.
  • ThrugelmirThrugelmir Forumite
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    Quote:
    The average home in England and Wales costs £161,000 – and the average buyer puts down a 26 per cent deposit.

    This means a typical buyer must find a deposit of about £42,000 when they buy a home, an amount which millions of families could never afford.

    Most people didn't start life with an average house (under the more recent boom of i/o mortgages). I started on the property ladder with a 2 bed 2nd floor flat.

    Wasn't my dream home, but allowed me to get started.
    Real insurance claim quote : -

    "Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
  • LokoloLokolo Forumite
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    Thrugelmir wrote: »
    Most people didn't start life with an average house (under the more recent boom of i/o mortgages). I started on the property ladder with a 2 bed 2nd floor flat.

    Wasn't my dream home, but allowed me to get started.

    ^^ Exactly what my response was going to be. However I decided to play Call of Duty for a little bit instead.
  • LokoloLokolo Forumite
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    However, buying a house will allow you to save more later on, rather than paying rent which will go up each year.

    I was surprised how little my pension took from my wages, compared to the gain. However, those leaving college now are told to pay for uni, save for pensions, save for house deposits.....and woe betide them should they decide to have a holiday.

    On a personal level, I think theres a fine line between existing and living. Reading some of these comments, it seems some are telling others merely to exist. Don't get me wrong, pensions are extremely important. But we are hitting a crisis point where those who don't have assets are getting poorer and poorer, while those have assets want everyone to shelter them.

    Just look at the cost of housing, whether it be renting or buying. Starting out now is incredibly hard, and going to get harder. People do need to live their life and enjoy some experiences, rather than bunker down for 40-50 years in an existence. It's all moderation.

    We'll probably never see the lifestyle the previous generation have just lived through. Free care, lower retirement age, asset prices rising beyond expectations, cheap credit etc.

    I never said don't buy a house? I said you don't NEED a house. Yes a house will save you more money in the longterm. However, you do NEED pension provisions. The OP is saving £1k a month for a house - yet says they cannot afford to put any money into a pension...? How does this make any sort of common sense?
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