Relax, Millennials, Social Security Will Still be Around for Your Retirement
As a Millennial, myself, I understand the impending worry that will be brought about as I face college and my eventual career. However, I am not one to procrastinate, and know it is better to plan for retirement now than stress over it later. Yet, I concede that not everyone is on the same boat, so I am writing to alleviate said grievances one could feel about retirement. Social security is here to stay, if Millennials alike are willing to take precautionary measures.
Former president Franklin D. Roosevelt founded the Social Security Administration as a source of welfare after the Great Depression. The Act was passed as a way to provide benefits for retired workers and pay money to those age 65 and older as a continuous income. This program was so beneficial and successful that it is still around today. But there’s a problem, people are living longer.
Don’t fret, because millions of Americans depend on the system, so no political party is willing to shatter the source of welfare and risk giving up political authority. After all, taking away rightfully-earned money from dedicated citizens will ensure that said political party will not be in a position of power for a long time.
Modern technology and medicine has advanced to a point where people and living longer lives. That being said, social security will be around, but the age to collect will be increased to support such an influx of earners. Millennials might not see the money until they are 70 years old.
Furthermore, studies show that if payroll taxes were raised 2.66 percentage points immediately, the system could pay 100% of benefits all the way to 2090, according to The Chicago Tribune. If each of the taxes were paid by employees and their employers, that increase breaks down to 1.33 percentage points.
There are also claims that elders will be able to receive full benefits until 2034. Nevertheless, for myriad decades to come people will still receive ¾ benefits, and that is if the government refuses to take any action.
It is critical to plan for retirement, and it is never too early to start. Regardless of 401K’s and 403B’s, when Millennials reach retirement age they will be able to make ends meet above the poverty line as a result of the previously stated contentions.
This article was written by Julia Clopp, Secretary of the Youth Advisory Board of American Heritage Federal Credit Union.