4 ms·

You'll own nothing, and you'll be happy. https://www.youtube.com/watch?v=lBBxWtKKQiA https://www.youtube.com/watch?v=lBBxWtKKQiA

ceejayoz 5y ago
Sounds scary out of context, but it's hardly a silly prediction. Uber, AirBnB, clothing rental, device upgrade plans...
- asteroidbelt 5y ago
  It is not bad as long as you own stocks, which you can exchange into material goods. Like some of my friends can afford a decent house, but prefer renting because it gives greater flexibility (they can rent a small flat in the center of the city in a walking distance to the office and meet with friends often while they don't have children instead of investing into big house in the suburbs with empty rooms they wouldn't use). But if you own nothing and don't save, this is bad. The UK did a great thing last year, they increased to minimum payment to private pension (equivalent of US 401k) to 8% of salary, so even irresponsible people will have some savings at retirement age. And I think the UK should continue gradually increasing these contributions.
  - jlokier 5y ago
    > even irresponsible people will have some savings at retirement age Ah, there are enough loopholes that a lot of people still won't end up with any savings at retirement age. There are a lot of self-employed people in the UK, at the low end of pay (gig workers, freelance cleaners, graphic designers, etc) and high end (consultants, IT contractors etc), and bootstrapping entrepreneurs (pay all over the place). The pension 8% doesn't apply to any of them.
    - asteroidbelt 5y ago
      > high end They will do fine. > The pension 8% doesn't apply to any of them. If this scheme solves 90% of problem it it still better than nothing. If in 30 years UK will be in deep recession because of economic downturn and aging population, it is better if 10% of old people people will be in deep poverty than if 80% old people in deep poverty. (Also, 90% of old people getting at least some private pension income would also help the economy to recover.) 8% contribution would give you about 20% of your average income if you are low earner, so you can't afford a lavish lifestyle on your 8% pension contributions. So this 8% contributions is rather a safety net than a proper retirement planning. And that's why I think it need to be gradually increased.

ceejayoz 5y ago

Sounds scary out of context, but it's hardly a silly prediction. Uber, AirBnB, clothing rental, device upgrade plans...

asteroidbelt 5y ago
It is not bad as long as you own stocks, which you can exchange into material goods. Like some of my friends can afford a decent house, but prefer renting because it gives greater flexibility (they can rent a small flat in the center of the city in a walking distance to the office and meet with friends often while they don't have children instead of investing into big house in the suburbs with empty rooms they wouldn't use). But if you own nothing and don't save, this is bad. The UK did a great thing last year, they increased to minimum payment to private pension (equivalent of US 401k) to 8% of salary, so even irresponsible people will have some savings at retirement age. And I think the UK should continue gradually increasing these contributions.
- jlokier 5y ago
  > even irresponsible people will have some savings at retirement age Ah, there are enough loopholes that a lot of people still won't end up with any savings at retirement age. There are a lot of self-employed people in the UK, at the low end of pay (gig workers, freelance cleaners, graphic designers, etc) and high end (consultants, IT contractors etc), and bootstrapping entrepreneurs (pay all over the place). The pension 8% doesn't apply to any of them.
  - asteroidbelt 5y ago
    > high end They will do fine. > The pension 8% doesn't apply to any of them. If this scheme solves 90% of problem it it still better than nothing. If in 30 years UK will be in deep recession because of economic downturn and aging population, it is better if 10% of old people people will be in deep poverty than if 80% old people in deep poverty. (Also, 90% of old people getting at least some private pension income would also help the economy to recover.) 8% contribution would give you about 20% of your average income if you are low earner, so you can't afford a lavish lifestyle on your 8% pension contributions. So this 8% contributions is rather a safety net than a proper retirement planning. And that's why I think it need to be gradually increased.