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| When it comes to consumer spending/borrowing something tells me that middle class America is robbing their future to pay for the present.
It would be interesting to know the true figures of what the age class of 25 to 45 year old middle class Americans are actually contributing to a retirement account. 10% of ones yearly income is the minimum, 15% is good, 20% is better and 25% is great.
I retired in 2021 and I could not believe the number of new recruits, those who were new hires all the way to those with 5 years of service, who did not contribute anything to their 401k. By not doing this they left the government's 6% match on the table.
I asked many why they didn't contribute to the 401k. The answers ranged from "i am going to have to work till I am dead so I might as well spend it all now while I am young." To " I can't afford to contribute. My finances are maxed with a rent/house payment, vehicle payment, student loans, and everyday living expenses. There is nothing left to contribute." | |
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Consumer borrowing
