Why Social Security For Millennials Is A Pipe Dream
It’s Not Going To Happen
No matter how you spin it there are a few things millennials can expect in the future. Older generations saying we don’t know what is headed our way, Social Security For Millennials being our favorite joke in our 50’s, and the world will continue to get hotter. Here is what you need to know about Social Security and what is happening.
What Social Security Is For
Social Security was once considered a given for past generations. A way to make sure that the elderly aren’t left behind and can’t continue to have basic needs met. It WAS NOT intended to continue to the same lifestyle as if you were working. The goal was to have no bills, mortgage gone, cars paid off, and kids on their own by the time you retired. That way the roughly 30% of your income you receive will be enough to eat, keep the lights on and do some light traveling. Not any longer.
Millennials vs Social Security
2034. That is the year the Trust we put all of our funds into runs dry. Why? Lots of reasons, decreases in the tax from business that add to it, to using the surplus decades ago to start new projects, and pay bills. Long story short. Baby Boomers are pulling more money out than Millennials can put into the system.
With high amounts of student loan debt, a stagnant work force because of the recession. Why would a Baby Boomer retire when his stocks were down 50%? They’ve stayed longer taking the high paying jobs that would otherwise go to another generation allowing us room to move up in the work force. Thats why TopMillennials are entrepreneurs and are starting new businesses. It’s now the only practical way to make six figures and prepare for your future early on in life.
Social Security will be at a ZERO balance by 2034. At that time it will be cut by 21%. If things continue the way they are going after 2034 will be looking at receiving just over 70% of the full amount we were paying in. There are two ways the government can fix this. Raise taxes, which they don’t mind doing. The first personal income tax was just 3%….
OR they can cut back benefits on Social Security earlier allowing them to continue paying out the reduced rate until the 2070’s. Either way it isn’t what we want to hear, but it is a reality we have to face. Social Security For Millennials is either going to be reduced, or not around at all.
What You Can Do About It
Start saving and save like a mad man or woman. If someone told you statistically you had a greater chance to not receive 30% of what you saved in retirement wouldn’t you decide to take matters into your hands 40 years earlier? Here is your chance! Start by contributing more to your 401k, start a Roth IRA, and make sure that you diversify your money. Real estate is always a great idea and cars never are. I don’t have to tell you that driving around a flashy new ride while living pay check to pay check isn’t the smart thing to do when it comes to your financial future.
Your 401k’s are not apart of your SS benefits, neither are your real estate investments. Don’t throw all your money into get rich quick schemes. They NEVER work. They are called schemes for a reason. Wealth starts by stacking your dollar bills one at a time at a very young age and then reaping the rewards years later. Thanks compound interest, you rock.
If You’re Counting On Social Security For Millennials
That is like investing everything you had into Enron while also having Wesley Snipes accountant. Make sure you are ready for retirement without Social Security. If it is their picture it as icing on the cake. If it isn’t, well you can still live your life without having to move in with your kids.
How are you saving for retirement? Do you think Social Security For Millennials will be there when we retire? Let me know below!