Why do people save?

RG2015

Thrugelmir wrote: »

Basic sound personal financial management skills have been lost. That's the bigger problem. As people of all ages save less. May be wealthy as a country but waste far more.

Many on this Board on MSE do demonstrate these skills. If only more across the nation could be persuaded to take a bit more responsibility not only for themselves but also their communities.

stoozie1

I'm a saver because i feel secure when i feel i have enough/more than enough in the future.

OH is a spender because he feels secue when he has enough/more than enough now.

My view is that I'd rather skipdive now than when I'm 80.

Eco_Miser

RG2015 wrote: »

People are living a lot longer than in the past and long term care can be very expensive.

It's more that a lot more people are living to the same ripe old age as the lucky have always achieved. There are far fewer of us dying in infancy or being slaughtered by the million on a foreign field.
Fortunately that improving health also means many of us don't need that long term care, just short term near the end.

RG2015 wrote: »

It is a sad indictment of a very wealthy country that a major motivation for saving is fear of not being able to afford to live out our years in comfort and with dignity.

Yes, but enough about the US.

OldMusicGuy

RG2015 wrote: »

It is a sad indictment of a very wealthy country that a major motivation for saving is fear of not being able to afford to live out our years in comfort and with dignity.

Why is that an indictment? Surely it's an individual's own responsibility to ensure they have enough money to meet their needs throughout their life. It's only fairly recently that retirement spans of 20 to 30 years or more have become common.

I certainly don't believe it's someone else's responsibility to look after me if I fancy 30 years plus of not working. That's certainly been a huge motivator for my saving behaviour in the past 5 to 10 years, namely to build up enough pension and other savings so that I can afford to retire early and fund at least 30 years of retirement. I'd not really been a "saver" up until that point. Never in major debt (apart from mortgage) but not a regular saver.

pearl123

In my twenties i went without food quite often. I worked for the minimum wage and often had to grab what work was available.
In my mid thirties both myself and my parents hit a bad financial spell at the same time. It was scary. I could cope with it but they didn't understand cutting your clothe according to your means.


I remember an old man telling me. "Save it you've got it - spend it you've had it". His words have remained with me. I now save because I never want to be in that position again.

I look around at the knick knacks I've collected in my house and just think I don't really need this. Some will be off to eBay. I just want a simple life.
I save also because at the age of 50 I know that I will just have a state pension.

I now get a buzz from saving. i doubt I'll ever be comfortably well off but I hope to do enough to stop much of the worry.

badger09

pearl123 wrote: »

In my twenties i went without food quite often. I worked for the minimum wage and often had to grab what work was available.
In my mid thirties both myself and my parents hit a bad financial spell at the same time. It was scary. I could cope with it but they didn't understand cutting your clothe according to your means.


I remember an old man telling me. "Save it you've got it - spend it you've had it". His words have remained with me. I now save because I never want to be in that position again.

I look around at the knick knacks I've collected in my house and just think I don't really need this. Some will be off to eBay. I just want a simple life.
I save also because at the age of 50 I know that I will just have a state pension.

I now get a buzz from saving. i doubt I'll ever be comfortably well off but I hope to do enough to stop much of the worry.

pearl123 have you thought about saving in a pension? Tax relief makes it worthwhile.

RG2015

OldMusicGuy wrote: »

Why is that an indictment? Surely it's an individual's own responsibility to ensure they have enough money to meet their needs throughout their life. It's only fairly recently that retirement spans of 20 to 30 years or more have become common.

I certainly don't believe it's someone else's responsibility to look after me if I fancy 30 years plus of not working.

You are correct and I need to modify my assertion that this is a sad indictment of very wealthy society.

Something still feels wrong but perhaps it is more an accumulation of unrealistic expectations since the cradle to the grave promises were first made.

pearl123

badger09 wrote: »

pearl123 have you thought about saving in a pension? Tax relief makes it worthwhile.

I'll have a look at the pension boards again.

badger09

pearl123 wrote: »

I'll have a look at the pension boards again.

You might have a browse around here as well.

RG2015

pearl123 wrote: »

I save also because at the age of 50 I know that I will just have a state pension.

I now get a buzz from saving. i doubt I'll ever be comfortably well off but I hope to do enough to stop much of the worry.

I took early retirement on a company pension so I am not up to date on the current options. However if you take out a pension plan you will get tax relief on your contributions. Or to put it another way, it is like regular savings earning 20% interest if you pay tax. If you are employed your employer will also contribute.

https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/tax-relief-and-contributions