News for hackers. Stuff that matters.

A comment on Millions of credit-card customers can’t pay their bills. Parent comment

Re:Millions of credit-card customers can’t pay their bills by gruez on Sunday April 26, 2020 @12:14AM (#22984349)
> It's the same for personal finances. It's actually inefficient for people to save for a rainy day because everyone has a rainy day fund when only 5% of people need it in a given year.

I get why it’d be inefficient to store inventory, but why is it inefficient to save? You get paid for it and you’d want to have money lying around anyways for retirement.

[ Parent | on HN ]
Re:Millions of credit-card customers can’t pay their bills by dehrmann on Sunday April 26, 2020 @01:21AM (#22984709)
Retirement is probably the best example. If you have to save for retirement (so no SSI), you need to plan for your 95th (or 99th?) percentile life expectancy/spend rather than your mean expenses. Since retirement is about doing what you want and not just working for money, that means you have to work extra years so that on the off chance you make it to 100, you still have money.
[ Parent | on HN ]