FAMILY CRISIS: Seniors, their Kids and their Grandkids Facing Retirement Catastrophe
There’s no denying it. Social Security will experience a shortfall if Congress doesn’t do something soon. A 2020 report by the Social Security Administration trustees predicts the agency will only be able to pay about 76% of scheduled benefits by 2034. USA Today looked into what exactly this means for you, your children, and your grandchildren.
Generational Guide
Baby Boomers and Older – Current retirees, as well as those who will be enterin retirement in the near future, face a lot of uncertainly with 2034 just 12 years away. Up until that date, experts believe Social Security benefit estimates for those born in 1946 through 1964 should stay on target. But, going forward, benefits could be reduced if Congress fails to put a solution in place to shore up the reserve account within the overall Social Security trust fund or if Congress fails to increase payroll taxes to support the commitments made to retirees.
Gen X – Financial planning experts suggest Gen Xers, those people born between 1965 and 1980, should start saving for retirement with options other than Social Security. That’s because many fear this generation could see a 10% reduction in Social Security benefits. The good news is these are their peak earning years (ages 41-56), so they should be able to ramp up personal savings. And, if the government works everything out and Social Security is not forced to make cuts, GenXers will have extra money socked away for retirement.
Gen Z and Millennials – Experts say it’s too early for millennials and Gen Zers to worry about Social Security cutting benefits. However, that doesn’t mean these generations should not plan and save for retirement. Financial planners recommend, at the very least, that workers currently in their 20’s and 30’s take advantage of any employer matches or incentive.
Social Security Reform Is Needed
While some think this might be much ado about nothing, believing politicians have too much at stake to let Social Security lapse. That fact is, if Congress doesn’t act retirees will suffer. Without action, a big block of voters will see their Social Security benefits cut. Lawmakers need to take action to shore up Social Security – NOW!
Fortunately, the solution to shoring up Social Security is already here, Congress just needs to act on it.
The Social Security Expansion Act is a landmark piece of legislation that will not only strengthen the long-term solvency of America’s Social Security program ensuring it’s there for today’s retirees and tomorrow’s, but it will also provide bigger monthly benefits and establish a fairer formula to calculate the annual cost-of-living adjustment taking into account the unique spending habits of seniors. The Seniors Trust has been working diligently to get lawmakers to enact this bill. You can show your support by signing their petition.
