Re:For Economy, Aging Population Poses Double Whammy
by pjc50 on Thursday August 04, 2016 @12:06PM
(#12226482)
Do you want moral homilies or financial advice?
Sure, living below your means is generally good advice; but my point was that as interest rates go down that affects the discount rate, and the amount of income required to achieve a particular nominal income in retirement increases dramatically.
(Also, there's quite a lot of people who are barely able to get over the first financial hurdle of paying rent, let alone buying a house, both of which are more important than pension saving. Being a renter even with a big pension is much worse than being a homeowner with a small pension.)
Sure, living below your means is generally good advice; but my point was that as interest rates go down that affects the discount rate, and the amount of income required to achieve a particular nominal income in retirement increases dramatically.
(Also, there's quite a lot of people who are barely able to get over the first financial hurdle of paying rent, let alone buying a house, both of which are more important than pension saving. Being a renter even with a big pension is much worse than being a homeowner with a small pension.)