I’m a Millennial: 7 Reasons I’m Not Relying on Social Security for My Future Retirement
Written by
Laura Beck
Edited by
Jenna Klaverweiden
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Remember when your grandparents talked about their Social Security check like it was the golden ticket to a comfortable retirement? Well, for millennials, that ship might have already sailed. With the future of Social Security looking shakier than a Jenga tower in an earthquake, many young adults are taking matters into their own hands.
GOBankingRates spoke with millennials who are planning for retirement without counting on Social Security. Here’s what they had to say about why they’re not banking on this long-standing government program.
The Trust Fund Is Running on Fumes
The Social Security trust fund is projected to be depleted faster than a bag of chips at a Super Bowl party. By 2034, it could be empty if nothing changes.
“I’ve heard about Social Security running out of money since I was a kid,” said Amy K., a 32-year-old graphic designer from Seattle. “At this point, I’m more likely to believe in the Tooth Fairy than in Social Security being there for me when I’m 65.”
There Aren’t Enough Workers To Support All Those Retirees
In 1960, there were 5.1 workers per each Social Security beneficiary. That ratio has dropped to 2.8 today. And by the time millennials retire, it could be down to two.
Sam L., a 28-year-old teacher from Chicago, put it bluntly: “It’s like we’re playing a giant game of musical chairs, and when the music stops, there won’t be enough seats for everyone. I’m not taking any chances.”
Sam said his parents set him up with retirement accounts when he was 9 years old. “I’m legit just so thankful they were on it,” he said.
We’re Living Longer, but Our Money Needs To Last Even Longer
Living longer sounds great, but it also means our retirement savings need to stretch further.
“My grandma is 95 and still going strong,” Amy said. “That’s awesome, but it also means I need to plan for potentially 30 or more years of retirement. Relying on Social Security for that long is great for her and I’m happy it exists but I’m also worried!”
Benefits Might Get Slashed
Even if Social Security survives, there’s a good chance benefits will be cut to keep the system afloat.
“By the time I retire, the Social Security check might cover a nice dinner out once a month. Maybe. If I skip dessert,” Sam said. It’s hyperbole — but it underlines the panic some millennials are feeling about the situation.
The Gig Economy Is Messing Things Up
Many millennials are part of the gig economy or have nontraditional jobs, which can make Social Security contributions complicated.
“I’m a freelancer, so my income is about as predictable as the weather in April,” Amy explained. “Some months I’m rolling in it, others I’m scraping by. It’s hard to count on a steady Social Security benefit when my contributions are all over the place.”
The National Debt Is the Elephant in the Room
The growing national debt could put pressure on all government programs, including Social Security.
“With the national debt looking like a phone number, I’m not holding my breath for Social Security to be fully funded when I’m ready to retire,” Sam said. “I’d rather count on my own savings than play Russian roulette with government programs.”
We Can Do Better on Our Own
Many millennials believe they can build a bigger nest egg on their own than Social Security would provide.
“I’m not waiting for Uncle Sam to fund my retirement,” Amy said. “Between my 401(k), Roth IRA and some other investing, I’m trying to create my own personal pension plan. Learning as I go!”
While Social Security might still exist when millennials retire, these two millennials aren’t counting on it. They’re taking control of their financial future — and if the government is able to help them come retirement, that’ll be the icing on the cake.
As Sam put it, “I’m treating Social Security like an unexpected bonus rather than a guarantee. If it’s there, great. If not, I’ll still be sipping margaritas on a beach somewhere, goddess willing.”
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