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Still Time To Get On Track

My previous article showed that if Generation Z stays the course, they might get squeezed out of retirement. But it’s not all gloom and doom. Here’s why.

Time is on their side

Gen Z has one huge advantage on their side: time. It’s one of the most valuable assets because it allows money to grow. Most of us know about the wonders of compound interest, but what fails to be hammered in is that starting young is everything. Take a 23-year-old that saves 50$ a week at a 6% interest rate. In 40 years, he will have put aside $432k. But if that same 23-year-old doesn’t start saving until he is 33, he will only have $218k by the time he’s 63. …


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Our analysis shows that if Generation Z stays the course, they might not have the means to retire as their parents did. Here’s why.

When Old Age Security came into effect in 1952, it gave all Canadian citizens aged 70 and over a federally funded pension. The catch? Life expectancy in Canada was only 68.8 years back then, leaving little to no time for seniors to benefit from the program (1).

The age of eligibility was eventually rolled back to 65, and life expectancy accelerated steadily afterward. …


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A paper published back in 2014 caused quite a fuss. It analyzed the data from 201 financial education programs across the world to see what impact they had on financial behaviors.

It found that financial literacy programs influence only 0.1% of future financial choices, with even weaker effects in low-income families. It also concluded that financial education eroded quickly, with the most exhaustive programs having hardly any benefits after 20 months (1).

“Financial education as studied to date has serious limitations” Fernandes, Lynch & Netemeyer (1)

What failed to make the headlines was the author’s plea to take a better look at “just in time” financial education — where interventions occur when financial choices take place so that individuals retrieve knowledge from specific behaviors. …


A hiker observing the sunset at the top of a big mountain
A hiker observing the sunset at the top of a big mountain

Or finding the courage to be who you want to be

I always knew I wanted to have an impact. I wanted to create something that would change the world, make people’s lives better, or at least invest my time in solving problems that mattered to me.

Growing up as a woman in Morocco and living in four continents, I have seen injustice around me in many aspects of life. Things like women being treated unfairly, young people not getting access to education, huge wealth gaps, wage inequality, and gender discrimination, just to name a few.

I always felt an urge to do something about it. Until recently, I never really did in a meaningful way, but I also silently hoped that the day would come when I would decide to make an impact; the day when I had the means, the knowledge and more than anything, the courage to stand up, and ACT. …

About

Rim Charkani

Co-founder & CEO @ WALO.app // Twitter: @RCharkani

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