Paying for retirement in our days has become a problem. The social Security in Spain it is going through great financial difficulties and, although there is no risk of bankruptcy in the short term, the long term does not offer a very hopeful picture.
Even for those who don’t think much of the future, this situation is starting to get a lot of attention. The day to day has begun to be a focus of tensions, due to the high inflation that staple goods are suffering from strains in supply chains and rising levels of demand.
There is a feeling, spreading by the moment, that It’s getting harder and harder for us to make ends meet. And this, in a context of continued increase in life expectancy, is not exactly good news when it comes to our expectations of enjoy a well-deserved retirement.
Now, what can we do about it?
Let’s say there are two great strategies, and one is much more effective than the other. Although, unfortunately, it is also much less frequent.
Strategy 1: The political and social path
The first strategy is the one that the vast majority of people adopt. It basically consists of ask the political party in power to improve things and protest when they don’t.
I don’t know about you, but to me this seems like a wonderful way to waste time and patience.
The current political system, and Spain is no exception, does not have the necessary incentives to solve problems or do what is best for its governed. Quite the contrary. Politicians are incentivized to remain in power, and for that they have to keep the problems alive.
Trusting that the State will save you is not a good strategy. The State will concentrate its interest wherever it obtains the greatest electoral revenue. If you refuse to believe this principle, you are cheating at solitaire.
However, the vast majority of people follow this strategy, generation after generation. And their situation is only getting worse, because the problem of social security it is structural, not circumstantial.
But is there any other option?
Yes. Right under your nose. But this option has no one to point the finger at to protest. That is why it is not so popular.
Strategy 2: The Individual Path
The alternative to collective mobilization against an abstract entity that has no intention of helping you is individual responsibility.
In other words, accept that the problem you have to solve it by yourselfbecause nobody is going to come to save you.
There is a reason that financial education is not taught in schools. I don’t know what it is. But I’d bet it has something to do with this:
The system is not interested in people being too independent. You are interested in exactly the opposite. The more dependent they are and the less freedom of thought they have, the more power and influence the State can exercise over them.
Call me paranoid if you want. But it is absurd that financial education is not a core subject in the current educational system.
Either way, you can’t do anything about it. If you start protesting for them to provide financial education in schools, you would be falling into the previous alternative.
No, it’s up to you to solve the problem.
If you want to maximize your chances of having a good retirement, you have to educate yourself and make the right decisions to improve your financial health. And the sooner you start doing it, the better.
The interesting thing about this path is that, in addition to being the most effective for you, it also inspires others. Without intending it, you may generate changes in the same direction in the people around you. And paradoxically, to contribute to achieving a collective change that results in greater freedom and autonomy as a society, which we lack.
There you have the two ways to try to enjoy a good retirement. What’s yours, Moneytimer?
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