Goals, plans and new years resolutions. Those are the things that people do each year in anticipation for a brand new year. They’re going to make changes for the better. They’re going to start working out or losing weight. They’re going to buy a new home or pay a crazy amount of the mortgage off this year. Most new year’s resolutions are short term and only really focus on one year. It makes sense to focus on a small timeframe to make things attainable. However, I have never been a big new year’s resolution fan, as most people don’t follow through with their resolutions.
Two weeks ago as I was working on some articles for the website, I stumbled on an interesting article about social security. The article was titled, "Millennials and Retirement: How Bad is It?" by Alicia H. Munnell on Politico's website. The article dug into the numbers of savings for retirement. The data that they shared was from a study conducted by the U.S Board of Governors of the Federal Reserve System, titled, "Survey of Consumer Finances, 1983-2016." In the article, they shared the following graph.
A couple of months ago, I was talking with one of my relatives about retirement. During this discussion the topic of a pension came up and our conversation sounded something like this:
Me - "I hate my pension, because I have to put in 7.7% of my income into my pension."
My Relative - "At least you have a pension. I wish I had a pension."
The conversation didn't go much farther, but this conversation made me wonder. Do people really still believe in pensions? I feel like throwing my money in a pension is a waste and I wish I could choose to deny those contributions.