No. of Recommendations: 18
I've never trusted Fox News reporting, but these numbers are at least entertaining.

Retirement crisis: Do you have enough saved? Here's how to tell
https://www.foxbusiness.com/personal-finance/retirement-cris...

On average, employees are contributing about 8 percent of their pay to retirement accounts. That compares with the 16 percent that Aon recommends workers put away in order to retire comfortably by the age of 67.

Industry can also influence a workers’ retirement readiness. Those in aerospace, energy and oil, for example, were more likely to be able to retire by the age of 67, compared with workers in food service, retail distribution and some hospitality professions – whose retirement target was 75 or older.

The Trump administration and conservative lawmakers have sought to help Americans save more for retirement, including an increase of the contribution limits for individual retirement accounts (IRAs).

</snip>


I doubt increasing the contribution limits for an IRA are going to do much for a food service worker. They're not paying much in taxes to begin with, so the tax deduction is small to nonexistent.

intercst
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No. of Recommendations: 3
If they want people to save more PAY THEM MORE! That's the problem. It always comes down to forcing people to slice their pie thinner and thinner. More pie MF'ers! MORE PIE!

Except the Money Centers. No. They can't do with less profits and less personal fortunes derived therefrom. They must be given more and more and more and pay less and less and less. Why? So, they can "be more profitable."
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No. of Recommendations: 17
If they want people to save more PAY THEM MORE! That's the problem. It always comes down to forcing people to slice their pie thinner and thinner. More pie MF'ers! MORE PIE!

While I will admit it can be easier to save if one's basic necessities are affordable, it's all about what you save/invest, not what you earn. If you are lacking discipline then it does not matter how much you make. Too many people who make a lot of pie still insist on eating the whole thing and borrowing against next month's pie, rather than freezing slices to consume later. Education and discipline are much bigger factors than $$, IMO.

IP,
who has had the experience of saving for retirement in the early lean years
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No. of Recommendations: 29
If they want people to save more PAY THEM MORE! That's the problem. It always comes down to forcing people to slice their pie thinner and thinner. More pie MF'ers! MORE PIE!

Have to differ on this one. I've done the payroll everywhere I've worked, so I've always known how much money people make, and it's been eye-opening to me to see how many people make more money than me, yet are living paycheck to paycheck and deeply in debt, while I'm not. Your choice of residence, car, clothes (and how many clothes), how often you eat out and where, how much do you travel and where, all are huge factors.

For many people, it's just "how they live". Pay them more and they will just spend more. It's not "wrong" necessarily, but it does have the consequence of not saving much for times when they might wish they had.
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No. of Recommendations: 14
If they want people to save more PAY THEM MORE!

I would agree that for people who are prone to save, paying them more will result in more saving. But for those who are prone to spend, paying them more will likely result in more spending. The attitudes about keeping up with the Joneses need to change so that it's the saving, not the consumption, that people want to keep up with. That's a culture change that isn't solved by just paying people more.

AJ
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On average, employees are contributing about 8 percent of their pay to retirement accounts. That compares with the 16 percent that Aon recommends workers put away in order to retire comfortably by the age of 67.

Given the rules governing compensation and participation rates in employer tax-deferred retirement plans, AON's findings are right on the mark. In the 31 years that I participated in my employer's 401(k) plan, I was never allowed to contribute more than 8% of my pay.

I did get close to AON's recommendation of saving 16% of pay when I included my employers' matching contribution to the 401(k) plan and their contributions to my pension plan.

The Trump administration and conservative lawmakers have sought to help Americans save more for retirement, including an increase of the contribution limits for individual retirement accounts (IRAs)

Without changing the rules governing compensation and participation rates, Congress could raise the contribution limit to $100,000 and it wouldn't have any impact on the retirement savings rate.
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No. of Recommendations: 19
While I will admit it can be easier to save if one's basic necessities are affordable, it's all about what you save/invest, not what you earn. If you are lacking discipline then it does not matter how much you make. Too many people who make a lot of pie still insist on eating the whole thing and borrowing against next month's pie, rather than freezing slices to consume later. Education and discipline are much bigger factors than $$, IMO.

An anecdotal follow up to this thread, one that I've mentioned before but bears repeating.

When Youngest was 18 he took a gap year to get his head together. Was working full time for Starbucks at a bit over minimum wage plus tips. He was living at home, fed by us, insured by us, so not totally apples to apples with the minimum wage guy trying to make his own way.

Youngest owed us about $1000 at that time and was told that to pay us back he had to contribute that money to his Roth 401K that Starbucks matched, IIRC, 6%. The understanding was this was not his money for anything other than retirement. It came right from his paycheck, with the only effort on his part being filing the original paperwork.

About 6 months in I asked to see his 401K statement. Youngest was surprised to see how much had accumulated and grown, given we were in a time of great stock returns. He commented on how he had not even missed the money since it came out of his paycheck automatically. I for one will be reminding him of that when he gets another job.

Though not a teacher, I also taught middle school math for a trimester, helping the school out until they could get a replacement for a long time teacher who left suddenly. Some of our favorite lessons were practical. Figuring out how much money would grow with time and conversely how much something would really cost if charged to a credit card that was paid off with minimum payments. I talked about the importance of paying yourself first to get a jump start on compounding savings faster, and the basics of investing. If it's made relate-able, kids will find it interesting and want to learn. So why don't we teach them these important basics?

Understanding why one needs to be disciplined makes the effort that much easier.

IP
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I went through an exercise when nephew got his first job out of college. They offered a 401k benefit but no company match. I asked him if he had 1% less of his take home pay, would he miss it? He said no. I asked him if he had 2% less, would he be unable to pay his bills? No. This continued until 7%, when he said he felt that would start causing him financial stress. So 6% was the amount he chose to put into his 401k.

Fuskie
Who notes that was a couple years ago and the poor kid is too busy to sit down and go over where's he's at now...

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So why don't we teach them these important basics?

Because in this decade's version of the new math we have to <fill in the blank on silly stuff>

Meanwhile we anti-teach our kids with stupid messages, such as you can't win the lottery if you don't play. And the lottery helps pay for schools. True statements, but no math to go with them.

Mike
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