I think there are other, cheaper ways that can solve this issue. I think requiring students from a young age to learn more about personal finances is the first step. This can be done cheaply by requiring a semester or a full year in high school to learn about this subject. It is important to start at a young age. If they understand how to save money for retirement, they are more likely to do so than attempting to learn it on their own. Eliminating social security for the current generation is obviously not a viable option. It is too late for them to start saving money for retirement to make a real difference. I also agree that people should start working longer, not until their 80s however. Life expectancy is increasing and we need to grow accustomed to this. If we do not, people are more likely to experience poverty post-retirement. This will force them back to work at age 80 instead of continuing to work at age 65.
Based on the articles statement, "nearly 72% say they should have start saving earlier, a significant increase for 65% who believed the same thing just a year ago," TJ is right in saying that students need to learn from a young age about personal finance. I also agree with TJ saying that people should work longer due to the increase in life expectancy, but 80 is pushing it. I also think that this is a tough and touchy subject at this time with the baby boomer generation starting to be able to collect SS. I'm also under the impression that SS can't be lowered because of a fairness issue; these people deserve to collect in retirement, as I expect to be able to too. However, long run fixes should be repaired through an educational approach and assuring younger generations that saving is needed, and in higher amounts than what people do presently.
I think there are other, cheaper ways that can solve this issue. I think requiring students from a young age to learn more about personal finances is the first step. This can be done cheaply by requiring a semester or a full year in high school to learn about this subject. It is important to start at a young age. If they understand how to save money for retirement, they are more likely to do so than attempting to learn it on their own. Eliminating social security for the current generation is obviously not a viable option. It is too late for them to start saving money for retirement to make a real difference. I also agree that people should start working longer, not until their 80s however. Life expectancy is increasing and we need to grow accustomed to this. If we do not, people are more likely to experience poverty post-retirement. This will force them back to work at age 80 instead of continuing to work at age 65.
ReplyDeleteBased on the articles statement, "nearly 72% say they should have start saving earlier, a significant increase for 65% who believed the same thing just a year ago," TJ is right in saying that students need to learn from a young age about personal finance. I also agree with TJ saying that people should work longer due to the increase in life expectancy, but 80 is pushing it. I also think that this is a tough and touchy subject at this time with the baby boomer generation starting to be able to collect SS. I'm also under the impression that SS can't be lowered because of a fairness issue; these people deserve to collect in retirement, as I expect to be able to too. However, long run fixes should be repaired through an educational approach and assuring younger generations that saving is needed, and in higher amounts than what people do presently.
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ReplyDeleteWithout the payroll tax would people save more? Maybe a little bit, but probably not much...
ReplyDeleteI've always been intrigued by Chile's system which require workers to contribute to private accounts. From what I hear, the results have been mixed.