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According to a May 2025 Gallup survey, only 61% of Americans age 65 and older own stocks in any way, including IRAs, 401ks, etc. I found that a bit shocking and a little sad. I’m pretty certain HD readers and writers are not among the 39%.
If that is an accurate percentage, no wonder many retirees are in poor financial shape, no wonder social media is full of videos with seniors claiming they need and deserve higher social security benefits and higher COLA adjustments. Their message is simple, we worked and paid into social security for “our whole lives” and we deserve more.
Can the retirement system continue this way?
My investing in stocks only began when I implemented a 401k at my employer in 1982, I was 39 then and previously only dabbled with no understanding of what I was doing and no positive results. An employer match made it clear to me (but not everyone) that using the 401k was essential.
I often wonder where I would be without that 401k.
Some people find it hard to risk money, even on paper, even temporarily. Some people find it difficult to take a longterm view, especially decades in the future. I find that all understandable, but the trick is overcoming those obstacles.
So, how did you become motivated to embrace the stock market? How did you develop a longer – term mindset that allowed you to follow through to retirement?
I know I have banged on about this before, but our superannuation system here in Australia means that every employee saves 12% of their wage for their entire working life. And all superannuation funds have a fiduciary requirement, to act in the best interest of their fund members.
This should see most people well set up financially for retirement, and a significant reduction of the burden on our aged pension scheme. (An aged pension is available as a “safety net” for those without sufficient funds to service their own retirement.)
Makes sense to me, but Americans only want someone else or “government🤑” to fund their retirement. We can’t even raise the payroll tax to keep our Social Security system solvent.
There is a great disconnect between the taxes we pay and what they provide to us.
I was a rookie when the city started a 457(b) plan that I knew nothing about. Senior guys explained that I’d be foolish if I didn’t contribute the maximum so I asked my Lt. for his recommendations, which he gave me, and said I’d be a millionaire by the time I retired. I thought he was FOS but kept that to myself. He was right.
When I was in college, a family member gave me a few shares of IBM, AT&T, and something else (don’t remember now). The stocks didn’t make any sense. The price was stagnant over years and I only had a few shares anyhow.
Three things changed in 1993.
Stock trading was too expensive, but firms started phone trading at about $28/trade and I was an early adopter of internet trading.