An Investor Asks, 'Do Most People Not Invest For Retirement?' They Can't Understand The Mentality Of Spending Every Paycheck Immediately

A recent post on the r/Bogleheads subreddit drew widespread attention with a question that hit a common frustration: “Do most people genuinely not invest towards retirement?”

The original poster couldn't grasp why people don't invest outside their 401(k)s or pensions, especially those in personal finance forums. “I personally cannot understand the mentality of spending all of your cash as soon as you get it,” they wrote.

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Most Can't Afford To Save

Commenters quickly pointed out that the majority of Americans live paycheck to paycheck. “You seem to think that most people do this by choice,” one person replied. Another noted, “Over 6 in 10 U.S. adults say they are living paycheck to paycheck, including 78% of Millennials, 60% of Gen X, 45% of those earning >$100K.”

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One person shared, “[My sister’s] last role was $120k a year, and now she has nothing but Louis Vuitton handbags to show for 35+ year career.”

Others said it’s not that people don't want to save, it’s that they simply can’t. “Childcare, rent, student loans. We are drowning,” wrote another. “If you’re able to max out all your happy saving things, good on you. Lots of folks can’t, and it’s got nothing to do with money burning a hole in our pockets.”

Financial Literacy And Systemic Gaps

Another major theme in the thread was a lack of financial education. “Schools don’t teach personal finance and people blow money keeping up with the Joneses,” one person wrote. Others pointed to cultural influences: “America runs on spending.”

Many said they weren't taught anything about retirement growing up. “I had to read it a few times to understand what OP was asking,” one person admitted. Another wrote, “My parents didn't [invest]. So I knew nothing about saving/investing for retirement when I got out of college. I'm late to the game but I'm on it!”

Some people in the thread tried to clarify that even using just a 401(k) can be enough, depending on the situation. “A couple only maxing their IRAs for 40 years at 7% annual returns puts it at $3 million,” one person explained. “That's in today's dollars too.”

Different Lives, Different Priorities

Plenty of responses focused on the emotional side of money. A truck driver described saving 70% of their income while living on just 20%, noting that the remaining 10% went toward “3 or 4 vacations for myself each year.” Others expressed frustration with peers who spend everything, then complain about financial stress.

But not everyone agreed with the tone of the original post. “You are so arrogant to think that everyone, or most people, who aren’t able to save money toward retirement are just reckless or irresponsible,” a person wrote. Another pointed out, “Life happens to people. For me, it has been cancer and ongoing medical debt. Horrible divorce where I lost so much.”

A mix of financial constraints, lack of education, psychological stress, and short-term pressures appears to keep many people from saving at all. “You have to actively go out of your way to properly invest in your retirement, which naturally means like 50% of the population won't,” one person summed it all up.

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