Retirement? Bah! Let’s Spend it Now
Americans may be taking their #YOLO lifestyle a bit too far. You do only live once, after all, but most people also only get one shot at retirement.
More than a third of Americans say that they’re not saving for tomorrow because they are unwilling to sacrifice their quality of life today and would rather spend their money on things like dinners and vacations, according to a new study by Charles Schwab.
Maintaining their current lifestyle was the number one reason that people aren’t saving for retirement, followed by unexpected expenses (31 percent), covering monthly bills (31 percent), and paying off credit card debt (24 percent).
Even if they’re not prioritizing saving for retirement, they do want to work for a company that offers a retirement plan. Nine in 10 of those surveyed said that they would think twice about taking a job if the company did not offer a 401(k) plan, and 80 percent said they wouldn’t be confident in their ability to save for retirement without a 401(k) plan.
Related: Here are 7 Ways People Screw Up Their 401(k)s
Those who do have 401(k) plans said they don’t feel they’re getting enough guidance. Nearly half of those surveyed said that the materials explaining investment options are more confusing than those explaining health and medical benefits.
More than two-thirds of employees said that they want personalized investment counseling, but only 12 percent are currently getting professional advice. About half of those surveyed said that they would expect better performance if they used professional advice.
Nearly three-quarters of people said they’d rather have their 401(k) balance grow by 15 percent this year than lose 15 pounds. Maybe if they stopped eating dinners out, they could have both.
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