I'm 28 and have been putting about 15% of my pay towards retirement now for 4 years.
While I would agree that we cannot predict the future and what will exist for retirement in 40 years, I would disagree that the premise that we cannot make investment decisions.
We, being those of us with 30+ years to retirement, have to set a goal and develop a strategy to get there based on past performance and expected future happenings. Then as we get closer to our retirement date we reassess our goal and strategy and make corrections. Perhaps these reassessments will happen yearly as we get really close to retirement. That can only be decided as we approach retirement.
I work at a school where the instructors continually fight the attitude that because retirement is far off our students shouldn't do anything about it. I preach compounding, compounding, compounding. If you put a little bit in now then that will be worth more later than if you put in a whole bunch later.
And as far as the risk goes, you have decide how much risk your willing to take. In my retirement plan, I have the option to put my money in a fund that earns only about 3% a year, but is virtually risk free.
Do I do that, no. I have my money is a more riskier fund, due to the fact that I have 30+years until retirement and I would like to try and grow my money.
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