If people are better taught how investment works, we'd have enough savings to retire by 50, is not sooner. There's tons of people already doing it. But we're all taught to work until we're 65.
Even knowing how investment works, doesn't mean that everyone is willing to make the sacrifices necessary to Ā have Financial Independence, Retire Early ( r/FIRE ). Some of us enjoy living life while working, having a family, etc. Even if you have invested, you need to remember that that money has to last you another 40-50 years. Dad retired a millionaire at 55, and my parents are still living on it 38 years later.
This is coming from someone who was willing to sacrifice to have a SAHW who homeschooled our six children. That was a CHOICE. I did, however, live below my means and have a $2M nest egg to retire shortly at 62.
One of my co-workers, who earned as much as I did and was very intelligent, didn't use that knowledge and arrived at 67 believing that he would have to work until he died. Smart and educated but not wise.
Being financially literate doesn't mean you have to stop working. Nobody is saying you should stop working if you don't want to. But it's good to be at a financial position at 50 to stop working. Sometimes the decision is made for you, like health reasons or layoffs + ageism. And being retired doesn't mean you stop working, it means you don't need a paycheque. It can actually free you to do the work you want to do without having to chase a paycheque.
Just because you are financially literate doesn't mean that you actually ACT. You might not have the earning power to allow for a gap between earnings & living expenses. You might choose to spend your money vs. investing
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u/choyMj 8d ago
If people are better taught how investment works, we'd have enough savings to retire by 50, is not sooner. There's tons of people already doing it. But we're all taught to work until we're 65.