by Maria Carmela de Leon Hautea
The seeming detachment of young middle-income earners from investing in retirement plans stems from a realistic point of view. It originates from a mindset that is simple to understand: live today. For this reason, it becomes easy to rationalize the disinterest in putting in earnings for future use. At one hand, it entails dealing with the uncertainty of achieving expected returns. It also lessens one's liquidity to conveniently accomodate the necessary, and more often than not unnecessary, daily expenses (like buying the latest car, smartphone, or laptop; traveling; and shopping for trendy apparel.) More so, it comes with a serious commitment to contribute and maintain the plan, lest be faced with a costly consequence of incurring penalties. Perhaps it may even be unassuming to presuppose that the fear, yet possibility, of paying penalties is the more influential factor in refusing to make these investment decisions.