Reply to Why are people obsessed with putting $$ in retirement?

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Reply to "Why are people obsessed with putting $$ in retirement?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP is at least partly right. The Economist recently ran a cover story about a worldwide savings glut - never in the history of the world have people saved as much as now. And all these savings create a hunt for yield, which is part of what has bid up housing markets in the rich world - think Sydney, London, SFO, Toronto, etc. This is sort of why interest rates are so low. Too much supply of capital has bottomed out the demand (interest). This is the systemic side of things.

At a personal level you also require far less money than you think. And if you are willing to work until 70 you are golden. [/quote]

omg what are you babbling about?  The current savings rate in this country is 2.9%.  That is one of the lowest rates ever recorded.  People are extraordinarily overextended.  We do not have a savings glut in this country!

https://tradingeconomics.com/united-states/personal-savings 
[/quote]

Lol. Exactly. And just today there was an article on CNBC that savings rate is down to the lowest it's been in 10 years, again. Guess people are feeling flush again and 2008 is long forgotten. Savings gluts happen in Asia where savings rates can be 40%! I don't think Americans can imagine that. There have been times where Asian central banks have had to move interest rates to negative numbers -- i.e. you lose money by saving it -- to get people to take money out of their accounts and spend it! Americans have no problem going to Target 3x/wk and spending on all kinds of random junk.[/quote]

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