Jaspreet Singh: Why Social Security Is ‘Not Going To Be Enough’
Written by
Jaime Catmull
Edited by
Molly Sullivan
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Many Americans plan to rely on Social Security to fund a large chunk of their retirement. A recent GOBankingRates survey found that nearly one-third of Americans (32%) would need over $2,500 in monthly Social Security income in order to retire comfortably. However, the average Social Security payment is just $1,702. Given the large discrepancy, it’s clear that Social Security will not be able to provide the amount of income that most Americans desire.
“Think of Social Security like minimum wage,” Jaspreet Singh, founder of the Minority Mindset YouTube channel, told GOBankingRates. “It’s not going to be enough for you to live your life financially free.“
Not Your Parents’ Retirement
Those who haven’t retired yet will likely have access to less income in retirement than their parents.
“You can’t do what your parents — or grandparents — did,” Singh said. “For our parents and grandparents, retirement planning was a three-legged stool. You had: (1) Social Security, (2) a company pension and (3) your own savings/investments.
“Now, Social Security is drying up and pensions are a thing of the past,” he continued. “This leaves personal savings and investments as the sole tool to becoming wealthy.”
What This Means for You Right Now
Because you will need to rely on your own savings and investments to get you through retirement, it’s important to take action now so that your future self can live well. Singh recommends doing three things: “Live smaller, earn more money and invest the difference.”
This will mean having to go against the grain.
“We live in a consumerism society in America,” he said. “Most people want to wear Gucci, drive fast cars and go on fancy vacations so we can show it off on Instagram. But what if you can’t afford your dream lifestyle? No problem! Just put it on your credit card or use ‘buy now pay later.'”
While it may now be the norm, living this way “is a recipe for financial disaster — not for credit card companies, but for you,” Singh said. “That explains why the average American household has over $6,200 in credit card debt — a new record.”
The first shift you need to make to achieve financial freedom in the future is to start living within your means.
“This is not fun or easy, but every dollar you don’t spend is a dollar you have to invest,” Singh said.
Next, look for ways to increase your income.
“You have to learn to earn more money,” Singh said. “YouTube has made learning how to do this so much more accessible.”
Lastly, you have to invest your money wisely.
“Your 401(k) is a start, but it’s not enough,” Singh said. “You will have to create your own investments — your [own] business, real estate, stocks — so you can live financially free.”
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Gabrielle Olya contributed to the reporting for this article.
Survey methodology: GOBankingRates surveyed 1,028 Americans ages 18 and older from across the U.S. between June 27 and June 29, 2023, asking nine different questions: (1) Have you used Artificial Intelligence (AI) for any of the following? (Select all that apply.); (2) How much do you think you’ll need in monthly Social Security income in order to retire comfortably?; (3) How much do you spend on your average Costco trip?; (4) How often do you go to Costco?; (5) What items do you purchase most frequently at Costco?; (6) How do you think the restart of student loan payments will affect the economy in 2023 and beyond?; (7) How much student loan debt do you currently have?; (8) How will the restart of student loan payments affect your financial situation? (Select all that apply.); and (9) How much did you (or do you expect to) inherit from your parents/relatives? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
