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$0. Boomers ain’t letting us get SS.
…looks around tho….
Looks like they are already pissing off a generation.
I agree with $0 but I think millennials and gen z can use Bitcoin as a form of social security. Bitcoin is an index on the world’s energy. As more people put their energy/time into bitcoin it’s purchasing power increases. As the years go by, you’re able to capture more and more of the worlds’s time and energy, essentially creating social security for yourself
Not exactly apples to apples but something to think about
And it can be lost if the Bitcoin value destabilizes. There is no social contract stating we are entitled to Bitcoin if we work “x” number of years and are taxed on that income. SS may go away, but if it does something else will have to replace it - like other types of government support systems.
So many people are unable to save for retirement because they don’t make enough to do so. Also, the Great Depression era had a significant amount of factory jobs with guaranteed pensions. So, up until the Baby Boomers (and even some Baby Boomers have this benefit) Social Security and retirement pension worked together to provide modest income as well as company sponsored healthcare for many.
Baby Boomers capitalized on healthy markets and cheap education for years. So, many of them have saved up significant funds. They also stand to inherit from the Great Depression era who washed and reused ziplock bags to be thrifty so they could pass on wealth to their children to help prevent their children from going through what they went through (and also because they were terrified of reliving that nightmare).
Gen X had expensive college and has been through two huge economic downturns. They saw their parents live well when they were young, but realize that is not the lot for them now. Gen X was told the only path was through college and then they graduated and realized their friends without student loan debt go on more vacations than them even though they make less money because student loan debt is crippling. They make enough to not be able to take advantage of government programs but not so much that they can build significant wealth - unless they landed in high income jobs, which most did not.
Millennials came of age in the middle of one economic downturn and now are suffering through another. Their Gen X parents spent Millenials’ entire childhood paying back student loans instead of devoting all of their money to the family cause. Millennials have never had stable footing economically as a generation since they became adults. They have little savings and are in debt from their expensive colleges also. They are doing so-so now because they lived with their parents for significant time periods or they split house costs with several roommates. But, they can’t rise through the job ranks because Baby Boomers aren’t retiring. So, no one above them is moving up. People are lateraling and making small gains through that process, but there are no lockstep programs that guarantee they will work for one company their entire lives. In fact, most of them won’t.
Gen Z may figure out a way out of this as they will see Baby Boomers pick the resources dry and Gen X and Millennials live amid great instability, but there is a long road ahead of economic shifts that will be greatly different from the current retirement stage.
I think more Gen X and Millennials will be/are pushing their kids and grandkids to trades. Hopefully that will provide more stability since lots of trade careers will be needed to support the needs of Baby Boomers for a long time to come.
Luckily, most in this bowl will likely have enough to be ok. But, there will be millions who will face significant difficulty in the future.
Personally, I don’t. It’s such a small amount in the grand scheme of things… a nice add on for some activities here and there, but won’t move the needle much and the effort to calculate it is big. But I think but AARP or the SSA have calculators on their websites.
I second SC 1. You can log into your SSA portal and see what your current projected SS will be. We have no way of knowing if it will stay or go, but it should have some weight since it currently exists.
Also, if you are asking this question here, then I assume you don’t have a good financial advisor who will look at your whole portfolio (regardless of whether it is invested with him/her) and run some numbers (they literally have complex programs that do this for them) to give you projections.
So, find a comprehensive financial advisor and ask them to run the numbers on various situations. This could include one scenario with SS and one without it. Some can do it while you sit there. Some will want to run the numbers and then have a presentation for you of the answers at a later time. Both seem to be find.
How do I know this? My work takes me to financial advisors often and they almost always want to show me their programs to try to steer more clients their way (which I personally love seeing). So, I get to see all of the cool programs they have. Some are amazing.
Anyone who says social security will be $0 drastically underestimates how entrenched it is as a social program. There may be changes, which can make it challenging to include in planning, but social security isn’t going anywhere.
As others have said, ssa.gov lets you review your earnings history and estimate your retirement income by age.
I don’t. Can’t count on it being around.
I plan around it, but I do use the gov calculator for estimation purposes:
https://www.ssa.gov/benefits/retirement/planner/AnypiaApplet.html
(Not a great mobile experience)
I checked my estimate on ss site. Not sure of the standards of others on this post, but the amount seems far from trivial to me. It's about $3k per month, or $36k per year.
It's not millions, but that's actually not all that bad. Not including that in my calculations for then I can retire seems unnecessarily conservative and may result into retiring later than when I can actually afford to.
What am I missing?
I think most on this forum will have this rate or amount as there is a cap based on income/contribution (we are all already in the upper bucket)
Odds are they just increase the age to 70 or 72. With many millennials having shorter lifespans with the reversal in trends the increase in age for full retirement could quickly solve any deficits.
Or just having smaller and more functioning government can also save a money of money there for SS
IMO they are far more likely to expand social security than to let it run out of funds. An insufficient percentage of people are adequately saving for retirement and they will be bailed out. Politicians can and will find money to buy votes er I mean help their constituents. In less than 20 years I think there will be guaranteed income and social security (double dip at SS age).
Maybe the they slightly increase the FICA rate, remove the FICA cap, and/or raise the age for full benefits but I can't see any realistic possibility it goes away or is significantly reduced.
Yeah 0
Coach
The social security website lets you make an account and estimate your payments based on how much you’ve paid in SS tax in your life, but like others are saying I wouldn’t plan for that income. I think we’ll still have it when we retire, but it won’t be the amount it would have been
Same here. Not counting on it.
For everyone saying not to count on it, why is that? I’m just curious.
Coach
30s. Not counting on it.
You should sign up for SSA.gov to track your credits for SS. The official site includes the estimate in today’s dollars for your retirement.
I don’t include it in my retirement value, bc it doesn’t come in until way after I want to retire, so that’ll just be fun money.
Personal capitals retirement planner does. It’s not much tho
I don’t add it to retirement planning. I expect to get some amount, possibly reduced. But I plan to put it in an account for my kids since I think they’re going to be the ones left holding the bag.
Personally I don’t factor it in
Depends on how old you are IMO. Late twenties/early thirty’s, I wouldn’t plan on it. Late 40’s early fifty’s, yea can probably plan on some, just have contingency if it doesn’t last that long.
No 25 and assume Social Security won't be given by time I can pull from it
Consultant 1 - proving the other narrative that millennials are astute at blaming others for whatever is wrong with their life, wrong with the economy, wrong with society, wrong with politics, blah, blah, blah. Please look past the blame game perpetuating age warfare so you don’t end up looking like a crybaby who can’t face the real world. Things have never been and will never be perfect.