Why are you saving for retirement? This was a question on a money message board I was perusing and I had to stop and think about it. So why am I saving for retirement?
Well I think I’m saving for retirement because I don’t believe I can survive on social security alone like my grandmother. I do not believe that I will have a pension like my mom. Thus to live I will need money. But where will it come from if not myself?
Thus I am saving for retirement out of necessity. I do not believe the government will step in and save me. I believe that social security will be very limited in scope, and it will be a needs based handout. Meaning that though I paid into SS, I will not get any because I was responsible and saved for my retirement. I know this sounds counterintuitive and counterproductive, but the reality is social security will not replace 50% or even 15% of my salary. So counting solely on it as a retirement vehicle would be ridiculous.
Second, I think I’m saving out of fear. Fear that if I don’t save I will end up eating dog food or not being able to afford medications I need. I’m fearful that even if I do save for retirement it won’t be enough. But I’m sure everyone is fearful. You can’t predict the market returns, you can only mitigate them by saving for retirement and not stopping during periods of recession like now.
Finally, I am saving for emergencies. Sure my retirement savings is “earkmarked” for retirement, but I became disabled, chronically ill, or injured, and I was unable to work and I ran through all my taxable savings, I’d start to use my retirement savings. It’s a safety net for my safety net. You cannot predict the future and anything can happen. So it’s better to be used to living on less, which is what retirement savings does. It forces you to live on less than you make. And can be used in dire emergencies.
Why are you saving for retirement?
13 responses so far ↓
1 Rendell @ BrandlessBlog.com // Jan 19, 2009 at 9:48 am
Hi,
I agree with you most of us are saving out of fear.
The fear of losing my:
1) Entertainment
2) Medical care
3) Travel
4) Roof over my head
5) Not able to provide for my children’s education
And the most important of them all
6) my FREEDOM
Rendell
Brandless Blog
2 savvy // Jan 19, 2009 at 12:54 pm
I’m saving for retirement because I have better things to do with my time than work
3 LivingAlmostLarge // Jan 19, 2009 at 4:54 pm
But savvy would you do a different job once you retired?
4 momthing1 // Jan 19, 2009 at 5:53 pm
I am saving for retirement because I want to continue to enjoy such things as oatmeal and electricity when I am in my 70s, 80s, and perhaps beyond.
I do not want to be a burden to my children and/or grandchildren.
5 Sarah // Jan 20, 2009 at 12:39 am
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Check out my most recent post for details if you want to participate 
6 TStrump // Jan 20, 2009 at 1:12 am
I’m saving for early retirement.
This work-thing is getting very tiresome.
7 savvy // Jan 20, 2009 at 8:28 am
Probably not unless it was infrequent freelance work (assuming it was something I enjoyed). I want more time to do the things I enjoy – travel, volunteering, hobbies, etc.
Right now, working finances all those endeavors as well as allows me to put aside savings for when I will no longer work.
8 fengshui // Jan 20, 2009 at 8:23 pm
“I’m saving for early retirement.
This work-thing is getting very tiresome.”
I personally plan to work PT, perhaps 16-20 hours per week in a teaching position, such as an assistant professor for a graduate nursing program. I couldn’t imagine not working at all in my 60’s, etc. I seriously would be bored. I love to garden in the summer, but even that wouldn’t fill up my entire week. And I won’t even mention how depressed I would feel being retired in the winter. I wouldn’t know what to do with myself…. To me, teaching grad students is creative and inspiring, it doesn’t seem like work to me. But, I fortunate that I have fallen into a career that I love, and have flexibility in…..
9 LivingAlmostLarge // Jan 21, 2009 at 8:36 pm
I think I’d like to do something that is fun like running a restaurant or something.
10 karla (threadbndr) // Jan 23, 2009 at 2:52 pm
I’m planning on working or volunteering maybe 20 to 30 hours a week once I retire. If I don’t have a job to get me out of the house, I tend to get just a touch agorophobic and not leave at all. Once I’m OUT, I’m fine, but getting out the door can be difficult.
11 LivingAlmostLarge // Jan 23, 2009 at 5:27 pm
I think working keeps you more mentally and physically active.
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