Since Bitcoin started going up a few months ago, I have been looking at a crappy Australian news site to see when they would mention it in the news. That was today. Hmm - seems legit. There were two other articles in the same paper that caught my eye as I browsed past reality TV, celebrity gossip and a lot of "influencers" I have never heard of to the Finance section, where there was a hangover cure for 4 dollars advertised.
Anyways....
The articles were about superannuation levels needed for a comfortable retirement and the average cash in the bank, taken from a survey - which I don't put much stock in.
In the superannuation article, there was this chart showing the averages of where people are and where they should be in terms of their contribution balance:
That looks pretty grim. While men are "doing better" for various reasons than women, they aren't exactly crushing it - being 60% short of the target at 30 years of age and thirty years later, 60% short, with only five years left in their working career. There are going to be a lot of destitute people out there. However, according to the other article, the average savings has increased 8000 dollars this year to sit at 33,000.
Perhaps rather than have the cash in the bank, they should have bought some Bitcoin before the banks bought some Bitcoin with their money.
Anyways...
The problem is that in Australia, there is a pension after retirement from the government and a lot of people rely almost solely on this as their old age security. It isn't much. It really isn't. However, for once in an article I have read something from a financial advisor I can agree with.
“Who knows what’s ahead, People assume they’re going to get the government pension, but who knows what’s coming.” - Vanessa Stoykov
Thirty years is a very long time in the world of economics and governments and from an investment perspective - mid-range. Essentially, doing it the way we generally do, we have half of our lives to provide for all of our lives - meaning that the early lives of our children too, since ours were provided for to be here today.
This means that depending on who and where we are, we have from about the age of 20 to 60 to make sure we can both keep a roof over our heads through those years, but also keep it there for the average 20 years we will live past retirement. Oh, I should mention, that chart of figures above assumes that at retirement, the person is living in a home without a mortgage. So, make it through life, save a deposit for and then pay off a house and put at least 10 percent of every salary away into superannuation on top of the employer payments they are obligated to make. What are the chances?
It is no wonder that people are falling behind and as we can see from the 60s group, they aren't doing any better than the 30s - however they do tend to have a house they can sell if needs be, something that professional families have trouble getting into these days.
The coming crisis that is mounting through this is going to be enormous, as many. many people will not be able to support themselves and therefore become reliant on governments. However, this requires governments to be able to use tax money to cover this, in an aging population and an employment market that is likely reducing through automation practices so that less workers are needed.
It is going to get very painful, but this isn't an overnight process, it is going to be like the world going on an economic diet, with all fat trimmed away without hope of ever being able to trim away enough. Things that people value like education will get reduced to the point of obsolescence or at the very best, only available to the most elite. Services will be cutback and the luxuries of today will become things of the past.
Unless something isn't done now, it is all going to get very Soylent Greenish and while we might not turn people into food for us to eat, I do think that the rate of depression leading to suicide will increase significantly to the point that it is an attractive option, rather than live a life of minimal subsistence due to economic pain. There are many other factors that will arise of course too - like the expansion of crime and violence into places that were previously considered safe.
But, since so many of us are shortsighted on longterm investments that have the chance of providing for us for life, there is very little option. How many people do you know how are 30+ and don't have anything in the bank? Or, don't even have a job?
Personally, I know I don't have much in my bank, but I have got some contributions made over the years into a retirement fund, since I have been working most of my life - although I think my Australian fund is lost. I am pretty damn sure I do not have enough though, as I haven't been putting extra contributions in, although I have put some in as I have been working for myself, whilst also working a job that contributes the last two years. I am lucky that I do have some crypto positions though, and I don't retire for 25 years, so perhaps that Bitcoin fragment I have will be worth something - and maybe the HIVE too.
Retirement isn't something most of us think of when young, other than wanting to retire early - but the average person will never retire early willingly, but might be retired as their services are no longer needed. Yet, retirement planning doesn't just impact our future, it also teaches us the habits to affect our present circumstances.
As I see it, pack a future and present are the same, the future is just a present that hasn't happened yet.
What I mean by this is while I do not want to suffer financially now, I also don't want to suffer financially in the future now, whether that be next week, year or in two decades from now. As long as I am alive, I will be experiencing nows, so I have to consider all of them. The only way to affect the future nows is to act in the present nows and when what is needed is wealth generation, investments need to be made, even if sacrifices have to made also.
People always think that small amounts aren't worth it, but a pack a day smoker in Finland didn't just spend 220€ in March on cigarettes, they also didn't buy 220€ worth of Bitcoin or some other investment. That means that the monetary opportunity cost between those two paths is 1400€ worth, or 7 free months of smoking. All of these things add up, all of these little expenditures and luxuries to become *death by a thousand self-inflicted cuts.
Sure, don't trust the governments with your money - but are you anymore trustworthy with it?
I think this is an interesting thing to ask ourselves when we consider our present economic position and our future present position. Are you going to be any better off ten years from now than you are currently, or is is it going to be more of the same, just with a few more wrinkles on your face? The world is changing, yet based on our actions, we seem intent on denying that we ourselves need to adapt to the new world.
I don't see the continual crashes that are to come as avoidable without an enormous shift in the way we think about resources, technology, opportunity, distribution and governance - but who does think about these things when they sit down at a screen and find something mindless to turn our attention toward.
Are you on the path to a comfortable retirement now or, on the path to reliance on what is available now, but won't likely be there to support when you need it in the future now?
Taraz
[ Gen1: Hive ]