Many young people shouldn’t save for retirement, says research based on a Nobel Prize-winning theory

Well, it's official, says Scott and the life-cycle model. You young people shouldn't save for retirement.

The free article: Many young people shouldn’t save for retirement, says research based on a Nobel Prize-winning theory

The full paywall article: Many young people shouldn’t save for retirement, says research based on a Nobel Prize-winning theory

So, you young people should be spending your money now and then pay for your retirement savings later in middle age, when you'll hopefully be in a better financial condition.

And, if you're a low-income worker, it doesn't make sense to save at all because Social Security is going to pay for your retirement.

 

They will do much better saving to buy a house.

 

Saving is key. Work to pay off your mortgage and then save further to move up on a better and better home. It is absolutely WONDERFUL and ADVANTAGEOUS financially to have no mortgage and no rent when you're retired, leaving only property taxes to worry about. So avoid all debt in retirement.

Think of this: if you have a mortgage and the housing market goes down significantly, you can end up owing more on your mortgage than your home is worth as many did in 2007, 2008, and later. Then, if you lose your job and HAVE TO move to another city or state for a new job, you are forced to sell and be left with a balance owned on your mortgage at a time when you also need a down payment on another house or need to pay rent! Then, you can be forced by those conditions to downsize, locking in a loss of assets and financial standing.

But if you own your home free and clear and the same thing happens, while your home is worth less, the same is true of all homes. So you can then sell and move "equal-to-equal" in value and comfort with no loss, and then continue building finances as you were doing.

 

People who depend on Social Security are idiots/greeters at Walmart.

Did the authors make their portfolios public so we can see if they really do as they say?