Why people are not saving for retirement?

Dear all,

Last Wednesday, I discussed with one of my colleague, this mid-30’s guy, has been working part-time for a long time and last year, our company offered him a fix position, meaning: increase salary, 4 weeks vacation per year, 1/2 the health insurance paid, 2nd pillar contribution, etc.

I asked him if this new life (fix job) has changed his life, he said: yes! but now I am working more, I have more stress and pay much more taxes! So far nothing special as it makes sense to all of us, but then I asked him what about saving for his retirement, he look at me with two large open eyes, and repeated, saving for retirement? but for what?

I was under shock, I told him, but now you can make a 3rd pillar account, save on taxes, or pay back your pension fund, or save some money for emergencies, he continues to look at me like if I was insane.

I understood that he is not interested in his future because he leaving one day after another one.

I must say that it is really difficult for my wide and myself to understand that kind of position after all we are doing to ensure an early and comfortable retirement.

Not everybody has the same goals in life, but I believe that it should be a must to think about the future.

Do you know this kind of people? what do you do?




12 thoughts on “Why people are not saving for retirement?

  1. YOLO = you only live once, these type of people are pretty fund to hang around with. What they say make sense, and they can bring out all the examples of people who live frugally then die suddenly. (Worst, their wife, husband, or kids, are now blowing the money like crazy). All sort of tragic happen and the people who save money didn’t even have a chance to enjoy life. etc.

    My life was very chaotic living with a YOLO, I didn’t have time to rest or recoup. It was on and on and on … yikes. I was super unhappy, I hated my job (the same one that I’m having now, and to my surprise, with adequate rest, I kind of enjoying it).

    I found happiness, when I … slow down. Healthy mind, body and spirit make a happy person. I can still enjoy the moment, without spending much money at all. Say, for 3 years, I was vegetarian, meditated often. I also only pay $30 every 3 months for badminton club membership. Now, I’m playing tennis, just pay for racket and balls, and I had a blast every other day. I can take all the aggression out at the court, come back home fulfill with laughter, and lighter heart.

    As far as retirement goes, it all depends on who’s influence your life. I was with a YOLO, I live like a YOLO, until I found myself. Now, I’m also with another YOLO, but I don’t let him distract me 😛 from my goal.


  2. Hi RA50

    There’s plenty of such people around me. I think lack of ignorance is one think, yolo is another thing.

    I usually try to motivate them by showing them what I do on my blog outside of work and after a while they usually develop some small interest in it. I guess thats as far as we can do. They need to look after their own lives with that.


  3. retiredat50,

    I totally agree with your shock in this situation. I simply have difficulty udnerstand how people can not even take their future and their retirements into consideration when it is such an important concept. Financial independence is key.

    Best regards,
    Dividend Beginner


    • Hi DB,
      Thanks for passing and commenting, it could come as well from the parental education, my parents always discuss the importance of the money as well as how difficult is to gain it. So you need to save part for the future.




  4. En Suisse comme beaucoup d’endroit ailleurs, il est difficile d’économiser. En Suisse, la plupart des gens comptent sur sur leur retraite et ce que le gouvernement t’oblige a payer (LPP+…).

    Je connais peu de gens qui ont l’idée et les moyens de pouvoir se retirer avant l’age de la retraite!
    Felicitations pour son blog!



    • Yves,
      Merci pour votre commentaire qui est pertinent, mais il est possible de se préparer de meilleure façon que la majorité des Suisses. C’est plus une question de volonté et de discipline et aussi ne pas vouloir montrer des signes de richesse qui ne servent à rien.
      Meilleures salutations


  5. I have a family friend who’s like this. He recognizes that even if he does save and invest a lot of money, he can easily lose most of it in the next recession or bear market. So his attitude is “might as well spend every penny of it instead of getting it taken away by the markets”. In addition, he has pretty good job security as a teacher so he doesn’t plan on retiring. High school teachers are practically on vacation for 3 months each year anyways and with tenure he has a lot of sick and vacation days.


    • Hi Tony,
      Thanks for passing by and commenting. This is the problem when people don’t understand the economy and stock markets. The most important is to have a long range plan and a good diversification

      A horizon of 10-20 years there is no risk of loosing everything but only gain.




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