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Most Millennials Have an Unrealistic View of Their Retirement Prospects, Analysts Say (hsbc.com)
From a blog post on research firm HSBC: HSBC calls for millennials to wake up to living and working longer, as research finds only 1 in 10 expects to work past 65. Most millennials have an unrealistic view of their retirement prospects according to a new report from HSBC. The latest report in The Future of Retirement series, Shifting sands, finds that on average millennials expect to retire younger than other working age generations. Millennials expect to retire at 59, two years younger than the working age average of 61. The survey of over 18,000 people in 16 countries finds that only 10 percent of millennials expect to continue working after 65 -- even as their generation faces unprecedented financial pressures and state retirement ages continue to rise around the world. This is despite 59 percent of millennials agreeing they will live much longer and will need to support themselves for longer than previous generations.
I was thinking that I won't be able to retire the way things are.
They don't expect to live past 65, given the state of healthcare in this country.
This view is unrealistic because it fails to account getting &*#@ed by boomers both with national debt, student debt, globalization suppressing wages, and lack of opportunities due to boomers working past retirement.
Millenials don't expect to work past 65 because they'd be surprised if they make it past 50 without committing suicide.
I have never met someone below the age of 30 that thought they had a chance of retiring at all. The majority expects Social Security to be gone, they have never seen a job with a pension, and they just lived the prime of their lives through the economic recession shattering both 401k investments and realestate.
Millenials are keenly aware of how screwed they are.
Seriously, the math is not hard. Live a simple life that concentrates on happiness instead of stuff, and make saving a healthy percentage of your income. You will be financially independent and have the option to retire well before 50.
Or you can choose to save 10% or less, inflate your lifestyle at every raise and work until you are 70+. More likely you will get laid off in your 50's and have to "retire" badly when all you can find is low wage jobs.
For the overwhelming majority of people in this country, retirement plans will be best summarized as "hope to die at work". Few people are making enough money beyond their needs to be able to save money towards retirement.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
In other news, I hear a bunch of buggy makers expect to be able to pass their trade down to their grandson.
Or coal miners expecting a boom in coal consumption.
Or unskilled laborers expecting those pesky computers and robots to disappear someday.
Or Americans expecting to work less, produce less but get paid more than the other 80% of humanity forever and ever.
if i die before next week
Millennials expect to retire at 59, two years younger than the working age average of 61
So they're only slightly more optimistic than actual stats would play out? I bet that's par for the course for any generation when they were still 20 years out from retirement.
The Wall Street Journal had a recent article about people who are least concerned about outliving their retirement savings are most likely to be a financial risk. The days of retiring at 65 and dropping dead at 70, which was the reality when Social Security got set up in the 1930's, are long gone..
https://blogs.wsj.com/experts/2017/02/17/the-people-least-concerned-about-outliving-their-savings-may-be-most-at-risk-financially/
The "research" comes from the bank that would like you to be more "responsible" with your money, like giving it to them. This is a bank that has paid billions of dollars in fines over the last five years for money laundering and interest rate rigging. The key statement form the report: "Despite the apparent ‘reality gap’ in Millennials’ retirement expectations, most (68%) have started saving for retirement, at an average age of 26. Millennials are also more likely than other generations to take investment risks to boost their retirement saving..."
So it's not that the millennials are unrealistic, they are saving a plenty, it's that the Fed and other national banks are keeping the interest rates artificially low to boost asset prices and prop up failing mega-banks including HSBC. So please HSBC, tell me more about how I need to "save" more for the retirement so that the government can bail you and your ilk out again when you blow up the economy with asset bubbles.
No, it doesn't. It's a popular meme around here but completely untrue. In jail, they will offer you some base level of care for serious problems but prison officials get to determine how serious it is and if it gets treated. Jail providers tend not to be on the right side of the bell curve, so even if you get to see the doc or midlevel, you may end wishing you hadn't.
If you need to be treated for a psychiatric illness, your choice of medicine will be significantly limited since many of those drugs can make you feel good (and thus have a marketable value in jail and are heavily restricted. If you hurt, well, too fucking bad. You get a tylenol or, if you're very lucky a tylenol and an ibuprofen.
The major downside of going to the ER for care is that the guy next to you might be strapped down to the gurney and being rather vocal about it. He's the one that got the bill from the last time he was in the ER.
Faster! Faster! Faster would be better!
Is there anything they *do* have a realistic view about?
Not designing UIs, that's for sure.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
Too soon man, too soon.
I tend to rant.
I hope I don't come off as sanctimonious since I once thought I would never be able to save enough to retire. I thought, knew actually, my parents generation had it much better with plenty of jobs and pensions for when they stopped working. I decided to do what I could fully expecting social security to be bankrupt when I needed it. I still am not sure how that will play out since I'm not collecting yet but I started saving earnestly some 30 years ago, weathered some tough market swings and still came out ahead. The stock market is really the only way to generate enough wealth to beat inflation unless you have an inheritance coming your way. There is plenty of useful, free advice to assist you on your journey. I recommend the Boglehead forum as a good place to start. As you close in on your retirement goal reduce risk and expect market volatility. So live below your means, save as much as you can, don't pay unnecessarily for financial advice and stay the course. Nobody knows the future. I mean this with great sincerity.
unless they were very, very wealthy. Also, google the phrase "infant mortality" sometime while you're at it. Or spare a thought to the 45,000 people who die unnecessarily every year because they don't have access to health care. Health care that we could easily afford if but choose not to because freedom. The freedom to die sounds great when you're not the one doing the dying.
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Most of us don't have that option - our companies are not going to keep us on until we die. We'll get downsized, outsourced, etc. at least once or twice and then not hired on anyplace else because of rampant age discrimination. After all, with more available workforce every year,
Demographics say otherwise. The demographic data, in this case, are helping you (assuming you want to stay employed...)
The reason for age discrimination is that employers can. That's because the baby boom generation means that there are an excess of population; you can afford to not hire the older ones, 'cause there's plenty of people looking for jobs. But the baby boom was last millennium.
it isn't like there are going to be enough jobs to go around.
That demographic bulge is over-- by the time millennials are ready to retire, there won't be that big bulge of population. We'll be in the population decline segment of the demographics. Too few people, not too many.
The problem is, a "realistic view" is nearly impossible. You can't predict how long you are going to live, how much medical care you are going to need, and what might happen to social services such as Social Security and Medicare/Medicaid, and consequently, how much money is "enough."
As someone who OWNS both houses and LAND - i can say you are WRONG. it's actually the combination. I have several hundred acres and a couple of houses. undeveloped land does not appreciate that much. It's the combination of a nice house - that is maintained - on desirable LAND(location, location, location) that appreciates.
of course there are "boom" areas that prove the exception, but for the most part it's both.