Why Your Grandkids Don’t Believe in Social Security
Nearly nine out of ten Americans over the age of 65 receive Social Security benefits. For many, it provides the bulk of their retirement income – up to 90% for some seniors. So why are most young people planning on a retirement without Social Security?
Simply stated – today’s younger workers do not believe Social Security will be around when they need it. And they fully expect to have to work longer than their parents and grandparents.
A recent Yahoo! Finance report examined findings from Northwestern Mutual’s 2020 Planning & Progress Study. It discovered that about 23% of Gen Z (born in 1997 or later) and 26% of millennials (born between 1981 and 1996) don’t believe they’ll be able to rely on Social Security to fund their retirement. Their concerns are warranted. According to the Center on Budget and Policy Priorities, starting this year Social Security’s total cost will exceed its total income. While trust fund reserves will supplement the program’s income, predictions are they will only be able to pay full benefits until 2035.
It’s important to point out that Social Security is not going broke. It will not run out of money and stop paying benefits, but if things don’t change it may not be able to pay the full benefit amounts in the future. So, your grandkids are right in not expecting to count on Social Security to fund their retirements.
The Seniors Trust is doing everything it can to help protect Social Security for today’s seniors as well as their grandchildren. It is calling on Congress to pass the Social Security Expansion Act. When passed it will shore-up the long-term solvency of Social Security along with increasing monthly benefits and instituting a fair cost-of-living adjustment. You can show your support by signing its petition letting lawmakers know that the time has come to protect Social Security now and for future generations.
