Almost nobody in my workplace invests in the stock market for their retirement, it's insane.

SneakySpectator

I work in a slightly below average pay job and I've probably spoken to about 20 out of the 30 colleagues about investing, just to gauge how common it is among "regular" people. 

And literally not one person I spoke to said they invest in the stock market, even when I asked about the workplace pension, about half of them said they opted out because "money now is better than money when I'm dead" which is just silly because the average life expectancy in the UK is 82... So what are they going to do to get by until they die? The state pension only? Yeah good luck with that.

One guy I spoke to who was in his mid 20's said he saves some money but in a savings account with a bank. I asked him what the interest rate was and he didn't even know... So probably like 1.5% if it's a regular high street bank which I suspect it is. I didn't have the heart to tell him he's actually losing money to inflation, not saving it... 

It just seems like not enough people are being financially responsible and taking steps to ensure they have a comfortable retirement. I absolutely promise you when you're 65 and freezing cold in your home because you can't afford to put the heating on, eating from food banks and having no money to do anything, you'll totally regret not being frugal and investing for your future. 

I think too many people live in the here and now without a seconds thought for the future. I understand that money is tight for many people but surely you can put a little bit away each month to supplement your pension when you're old?

I think financial education should be mandatory in schools with students being shown videos of old people living in poverty because they didn't invest in their retirements.

Swipe

Nothing new here. It has always been the case.

Eyeful

You must be very young if this comes as a shock to you. Its always been that way in the UK.

Why do you think that Tony Blair in 2012 introduced automatic enrolment into pensions. While enrolment is automatic, employees have the right to opt out if they choose.

The education system was design to supply workers for industries and offices. Useful stuff like tax, pensions, savings and investing was not seen as necessary for the majority of the population (the working class) who had little spare money. The middle and upper class had the money so they simply employed advisors and accountants. 

The UK does not have the culture of stock market investment that the USA has.

Investment Trusts where started by the Victorians to let the middle classes invest like the upper classes.

Unit Trusts where started in 1931, with costs controlled by law.

Altior

Not sure I entirely agree with that analysis, Eyeful.  

The Financial Wellbeing Survey 2021 found that 61% of UK adults save money either every, or most, months. These people are defined as ‘regular savers’. 

The majority of people are saving, perhaps not investing, and perhaps not all in a pension. Culturally, investing is still seen as gambling. Which is not entirely unreasonable I suppose. Even 'educators' and experts are cautious. You won't find many people in authority recommending people put all of their contributions into 'the stock market'. Default workplace pension funds have a cautious tilt at all ages. 

People still find it very difficult to swallow paper losses. Maybe it's different in other countries. 

Decades ago, most workers would have been in a DB scheme. Which were very generous indeed. Auto enrolment was needed eventually as the investment risk was moved from the employer to the employee. 

Hinchandrossi

SneakySpectator said:

I work in a slightly below average pay job and I've probably spoken to about 20 out of the 30 colleagues about investing, just to gauge how common it is among "regular" people. 

And literally not one person I spoke to said they invest in the stock market, even when I asked about the workplace pension, about half of them said they opted out because "money now is better than money when I'm dead" which is just silly because the average life expectancy in the UK is 82... So what are they going to do to get by until they die? The state pension only? Yeah good luck with that.

One guy I spoke to who was in his mid 20's said he saves some money but in a savings account with a bank. I asked him what the interest rate was and he didn't even know... So probably like 1.5% if it's a regular high street bank which I suspect it is. I didn't have the heart to tell him he's actually losing money to inflation, not saving it... 

It just seems like not enough people are being financially responsible and taking steps to ensure they have a comfortable retirement. I absolutely promise you when you're 65 and freezing cold in your home because you can't afford to put the heating on, eating from food banks and having no money to do anything, you'll totally regret not being frugal and investing for your future. 

I think too many people live in the here and now without a seconds thought for the future. I understand that money is tight for many people but surely you can put a little bit away each month to supplement your pension when you're old?

I think financial education should be mandatory in schools with students being shown videos of old people living in poverty because they didn't invest in their retirements.

Personally I don't classify investing as being 'financially responsible'. Far from it in fact, its gambling with your hard earned money, in fact its worse. Its letting some other pleb gamble with your hard earned money.

Saving yes, investing no.

You could lose not gain. Not just in comparison to inflation but proper loss.

And life is for living, especially when you're young.

Good for them I say.

secla

If your co-workers are also on a lower than average wage perhaps they dont have money left at the end of the month to save and even if they do have a little i am sure its tucked away in an emergency fund/isa. Massive amounts of the population live pay check to pay check.

I would imagine anyone who doesn't pay into company pension is unlikely to be investing in the stock marker

SneakySpectator

Hinchandrossi said:

SneakySpectator said:

I work in a slightly below average pay job and I've probably spoken to about 20 out of the 30 colleagues about investing, just to gauge how common it is among "regular" people. 

And literally not one person I spoke to said they invest in the stock market, even when I asked about the workplace pension, about half of them said they opted out because "money now is better than money when I'm dead" which is just silly because the average life expectancy in the UK is 82... So what are they going to do to get by until they die? The state pension only? Yeah good luck with that.

One guy I spoke to who was in his mid 20's said he saves some money but in a savings account with a bank. I asked him what the interest rate was and he didn't even know... So probably like 1.5% if it's a regular high street bank which I suspect it is. I didn't have the heart to tell him he's actually losing money to inflation, not saving it... 

It just seems like not enough people are being financially responsible and taking steps to ensure they have a comfortable retirement. I absolutely promise you when you're 65 and freezing cold in your home because you can't afford to put the heating on, eating from food banks and having no money to do anything, you'll totally regret not being frugal and investing for your future. 

I think too many people live in the here and now without a seconds thought for the future. I understand that money is tight for many people but surely you can put a little bit away each month to supplement your pension when you're old?

I think financial education should be mandatory in schools with students being shown videos of old people living in poverty because they didn't invest in their retirements.

in fact its worse. Its letting some other pleb gamble with your hard earned money.

Saving yes, investing no.

And this right here is a prime example of stock market illiteracy. I'm guessing you don't know that passive index trackers exist right?

I would never give my money to a "professional" to invest... not only has history proven that the overwhelming majority of them cannot beat the index, but they charge ridiculous fees.

And with regards to "living life". You can still live life and enjoy it but don't spend every pay check every month. Of course you can if you want but when you're old and cold, hungry, living in poverty going to food banks eating 1 meal a day with damp growing in your home, don't you dare blame "the system or the government", or energy companies or anyone else for your new found poverty.

Because it'll be their fault and their fault entirely.

masonic

Had I not switched from only being a saver to being primary an investor in my twenties, I would not have reached financial independence.

It is a shame that myths about investing are still being propagated today, even right here on this forum it seems, but I think more and more people are learning that long term investment is different than the short term speculation seen in the movies.

Charges have come down significantly and access has never before been this good. It is just a shame that those who are most sceptical tend to be those who need the additional returns the most.

Of course those who cannot afford even to save are not in a position to do anything about it even if their attitude to investing is more positive.

SneakySpectator

masonic said:

Had I not switched from only being a saver to being primary an investor in my twenties, I would not have reached financial independence.

It is a shame that myths about investing are still being propagated today, even right here on this forum it seems, but I think more and more people are learning that long term investment is different than the short term speculation seen in the movies.

Charges have come down significantly and access has never before been this good. It is just a shame that those who are most sceptical tend to be those who need the additional returns the most.

Of course those who cannot afford even to save are not in a position to do anything about it even if their attitude to investing is more positive.

I think part of it is hollywood. You'll see movies where anything involving a stock market scene the guy has 6 monitors and is trading back and fourth, researching company financial reports, gaining inside information and just over dramatizing it all.

Literally all you need to do to be a successful investor is buy a global diversified passive index fund every month for 30 years and that it's. Don't try and trade in and out, don't try and time the market, don't try and pick stocks, don't try and be like the guys in hollywood movies. 

It's actually incredibly simple.

Alexland

For people on very low wages maybe it's not worth investing in a pension etc as it might still only provide a very low level of income in retirement which would otherwise be covered by means tested benefits?

Altior

masonic said:

Had I not switched from only being a saver to being primary an investor in my twenties, I would not have reached financial independence.

It is a shame that myths about investing are still being propagated today, even right here on this forum it seems, but I think more and more people are learning that long term investment is different than the short term speculation seen in the movies.

Charges have come down significantly and access has never before been this good. It is just a shame that those who are most sceptical tend to be those who need the additional returns the most.

Of course those who cannot afford even to save are not in a position to do anything about it even if their attitude to investing is more positive.

It's not as simple in that, in my view. Most people can't take a big drop in their money (as they see it) in their stride, they'll panic. Human nature. I know about this stuff and even I can find it difficult to keep invested and investing in a falling asset. It's a challenge, for sure. 

I mentioned it on the forum elsewhere, real pain hasn't been felt for nearly two decades. It should have happened in lockdown across the west, but vast money printing postponed that pain and inflated assets. Yes we've seen high inflation, but not the same as negative equity or seeing your investments fall to half practically overnight and not bounce back.

If/when we see a deep global recession, equities significantly falling and no recovery for years, then we'll really see how well people heavily invested in equities react. It's actually worrying enough that it seems like a one way bet to many right now.