Do You Have A Retirement Account?

I think about finances often... but because of student loans, I was never really able to focus on my retirement until now. I am 25, opened up a retirement account, and I have just started contributing to it.

Do you have a retirement account? Why or why not?

  • Yes
    70% (7)46% (6)57% (13)Vote
  • No
    30% (3)54% (7)43% (10)Vote
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Most Helpful Girl

  • Yes but there isn't much in it.

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Most Helpful Guy

  • Yes, I do. It's mandatory in my country. The pension system where I live is based on three "pillars" as we call them. The first and the second are mandatory, the third one is optional. The first pillar is the national pension. In my country, the retirement age is 65 for men and 64 for women. Anyone between the age of 18 and 64/65 has to pay taxes regardless of whether you're employed or a student etc.. One part of your taxes go into a national pension fund (like a big pot). From this fund, every retired person gets an equal share (personal factors don't play a role). I think at the moment it's 700 or 800 dollars a month. This first pillar is based on solidarity, so people who earn more money also have to pay more taxes and thus help people with less money. The second pillar is the work pension. If you have a job, your boss is obligated to cut off a certain amount of money from your salary every month and pay it into a closed account that you can't open before your retirement. If you are self-employed, you have to do this too, you just have to do it for yourself instead of a boss doing it for you. The difference to the first pillar is that the money you'll have from this account per month depends on your personal situation, namely how many years you've worked and in what job. Obviously, the more you earn, the more money goes into the pension account (the percentage is the same for everyone but 5% of 6,000 dollars is not the same as 5% of 15,000 dollars). I think usually, the work pension ends up being at least 2-2,5 times the amount per month of the national pension once you're retired. So rather poor people will have a pension of maybe 2,500 bucks per month with the first and second pillar together. In Switzerland, that's not a lot of money. Finally, the third pillar is the non-mandatory one. This is basically just plain old saving money. You can open your own savings account and deposit money there whenever you feel like and as little or much as you want. Many people do that but there are also poor people who barely make ends meet and can't put any money on the side no matter how hard they work. This is why we have a national pension.

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    • "Anyone between the age of 18 and 64/65 has to pay taxes regardless of whether you're employed or a student etc."

      Maybe it's stupid day for me, today, but... what do people do if they genuinely just don't have the money?

    • @redeyemindtricks Well, if you're still a student, you usually don't have to pay a lot of taxes since you don't have a real job, don't own a house, usually don't have children etc.. For example I'm at university and my taxes are around 40 bucks a year. So it's not that bad. Health insurance is much more expensive in my case but my parents help me with that until I can earn money myself. If you're past your university studies but you still don't have enough money to live, either because you're unemployed or because you're a single mom or because you've got a handicap that prevents you from working or because you're a working poor, you get social security. The social security usually pays the rent and in addition they give you a monthly amount of money that functions pretty much the same as a salary. That means its first and foremost purpose is to pay all your bills, taxes, health insurance and basic living stuff like food and clothes. But if you manage your finances well and you live

    • humbly, it's enough to also do things such as maybe going on a small vacation with your kids once in a while or doing something else for fun.

What Girls Said 4

  • I've had one for the last 3 years. Opened one in the July I turned 20.

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  • I've got several which I started when I was twenty one.. Although there is the state pension in the UK, I rather hope to retire early rather than late in life.. And being self employed one has to save for the future.

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  • Yes, at first I thought about cancelling it but then I guess I really need it because it takes a discipline person to do some saving!

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  • I do actually. And I'm still in school.

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What Guys Said 9

  • Roth 401(k) crew checking in ✌

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  • I have one through the school district that I work for, I have it set up for 3.5% of my income to be saved away.

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  • lol nope. why would i think about my future? for all i know i might not even have a future. just live in the moment.

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  • No because I think it's a scam. How do I even know that the US dollar will be around in 40 years from now?

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  • Yes.

    It's mandatory here now, your employer has to pay a certain amount of your pay to your Superannuation account, which you can't access until you're 65 I believe.

    You can, however, pay extra into it.

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  • Yes, because ya boy not tryna work forever!!

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  • No sir I do not

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  • good idea... even small contributions over time make a big impact...

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  • Just a work pension.

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