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Does the US not have a compulsory savings scheme? In Australia, we have superannuation which employers must pay and it goes into a fund that is invested. My sch
by MRD85 8y ago
Does the US not have a compulsory savings scheme? In Australia, we have superannuation which employers must pay and it goes into a fund that is invested. My scheme gives me approximately 17% and after around 12 years of my working life, I have a couple hundred thousand dollars in my account. By the time I retire, it's likely to be worth around 1.5 million in today's dollars. I also invest some of my own money.
- neogodless 8y agoWe do. It's called social security. Technically, it should be enough to pay the bare minimum of your needs upon retirement, if you're in a low cost-of-living area. It does not ensure a comfortable retirement, and we have enough problems in our government to erode our trust in getting the full payout from the system. It's also "100%" paid out if you wait until 67, or 75% at 62. Also, I note you said "employers must pay"; we pay social security as a deduction from our paychecks in the form of a 6.2% tax. Employers also match that.
- MRD85 8y agoI just researched social security, it appears more like a pension plan. Our superannuation is entirely our money. When I reach retirement age then every cent I've paid (plus interest) is returned to me. If I run out of money I'm still eligible for the pension. I'm not entirely sure but I think my superannuation is more similar to a compulsory 401k.
- cpfohl 8y agoThe US is, as a rule, for better or worse, pretty opposed to"compulsory" in most situations