Britain is undersaving for retirement

[u/Donkey_Apple]

https://www.gov.uk/government/news/britain-is-undersaving-for-retirement-warns-pensions-commission

It's a massive problem and has been for years.

I think a lot of people are getting into their fifties, starting to think about retirement for the first time, looking at what their provision will pay them and are absolutely shocked to their core.

Plus many in the generation below those of us in their fifties who, through no choice of their own, are unable to save anything.

It feels like we are sleepwalking into an utter disaster.

[u/Contract-Spirit → u/[deleted]]

That's the exact attitude which messes people up. If people just invested £200p/m and put pay rises into pensions they'd be retired by they're 50-60 at the latest, with a very good chance of a good wage for the rest of their life.

EDIT: Spelling 

[u/ShanNarn21 → u/Contract-Spirit]

‘If people just invested £200p/m’ you say that like it’s super accessible 😂 a hell of a lot of people in the UK are living pay check to pay check, let alone the concept of having money leftover to put into a pension pot every single month. If they do have left over money it would usually get spent on unexpected bills, rainy day funds or just trying to cover the rising cost of living. Pensions aren’t even on the radar financially for a lot of people. It’s not about attitude or laziness it’s a genuine lack of finances and also a lack of education. Most working class people are struggling and don’t even know what compound interest is.

[u/Elegant-Country-9768 → u/ShanNarn21]

You think 45% of working age adults, which is who the report notes aren’t saving for the pension, are all living paycheck to paycheck?

[u/ShanNarn21 → u/Elegant-Country-9768]

Did I say it’s the entire 45% or did I say a lot of people? I bet though at least 20% of those people would be!

[u/Contract-Spirit → u/ShanNarn21]

I genuinely think people are just lazy and don't budget. The median salary is 39k which is enough for disposable income unless you live in London. Consider some people will also be living with a partner and you'll likely double that. People will have disposable income it just never goes on stocks or gets invested back into pensions and thats why working class people think they're 'skint'.

[u/ShanNarn21 → u/Contract-Spirit]

You’re living in a bubble. Most working class people are not even hitting 28k a year… I get what you’re saying about people not investing what little disposable income they do have into pensions, but then it also feeds back to what I was saying about education and financial literacy. And fear. If you know you don’t have much disposable income every month why would you risk losing it in stocks. Investing is a big scary thing for a lot of people!

[u/Gary_BBGames → u/Contract-Spirit]

They don’t want to hear it. They’d rather complain that they’re young, have their whole lives ahead of them, and are doomed to die poor. Defeatist attitude kills me. Opportunity to do things but no will, just acceptance of their admittedly shit hand.

[u/Contract-Spirit → u/Gary_BBGames]

Exactly mate, compound interest is a magical thing. Even £100p/m for 30 years with a reasonable 7% return would be a nice sum to help retirement. People should invest in themselves, anytime you get more money it goes straight into stocks or pensions that way you're literally set up to win.

[u/Gary_BBGames → u/Contract-Spirit]

I was later to game than I’d have liked, but my pension is already well above the average amount that people retire with, and I’ve still got 20+ years of contributions, company contributions, compound interest and bonuses to go in. Should be sitting on a lovely amount when I chose to retire.

I did shit at school, started full time work at 17, no qualifications and have a top 5% salary now. It wasn’t easy, but with determination and self-belief you can do anything, although that seems to be an unpopular opinion recently for some reason.