Seven Things Every Millennial Should Know About Social Security

By September 29, 2016Social Security
  1. For Median Income-Earning Millennials Retiring In The Year 2060, Each Will Contribute $466,000 to Social Security Over Their Lifetime

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If that seems like a lot of money that is because it is, especially since Millennials will likely never see the social security benefits. Think of all the student loan debt that you could pay off with that money back in your pocket.

 

  1. Social Security Is The Single Largest Federal Program 

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Forget defense spending, when it comes to government spending, social security takes the cake. In 2016 alone it will cost Americans $929 billion dollars. Over the next few years, that total is expected to reach $1.5 trillion dollars annually. Yes, you read that correctly TRILLION!

  1. Millennials Are Forced To Pay For Benefits They Will Never See

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Social Security is unsustainable. No matter how hard you kick the can down the road, at some point, you run out of road. Politicians refuse to address this problem and some have even suggested expanding the program. Millennials are already overwhelmed by student loan debt. When it comes to paying for programs they will never benefit from, we simply can’t afford it.

  1. The United States Has Already Surpassed The Amount Of Debt That Most Economists Warn Is Damaging To The Entire Economy 

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Social Security is going nowhere fast. Once 2034 rolls around and the program is insolvent, the funding will have to come from somewhere or the program will have to be abolished altogether. Since Congress is unlikely to cut all benefits for the senior citizens still relying on those payments, the program will have to be funded through in increase in deficit spending.  

  1. Social Security Is Outdated 

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The Social Security program was instituted in 1935, when the average life expectancy was 62. At that time, only 22% of the labor force was comprised of women. Back then, it was assumed that women would have to rely on their husband’s income in order to sustain themselves if their husband should die before them.

According to the Department of Labor, 57% of the workforce is currently made up of women. Relying on husbands for financial security is a thing of the past. Social Security belittles the role women now play in controlling their own futures and finances.  

  1. Social Security Is Going Bankrupt 

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According to their own research, the Office of Social Security admits that the program will be completely insolvent by 2034. Other research shows that this could happen even sooner than 2034. We are running out of time and Millennials are the generation who will pay the highest price.

  1. Millennials Need Retirement Options That Fit Their Own Unique Lifestyles  

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Young people deserve choices.  Millennials are an incredible generation who have changed the way the economy works. From Uber to Airbnb, Millennials play by different rules than older generations and they understand that they cannot depend on social security benefits for their own retirement.

Millennials need to utilize the free market to create retirement plans that makes sense for their lives. They also need a plan that will still be available when it is time to retire. Each Millennial is different and a one size fits all retirement plan will not work for them.