All Age Groups Will Rely on Social Security
August 13, 2010 by MJP
Filed under Social Security
Most personal finance blogs are written by 20 and 30-year-olds. Many regularly proclaim that they are not relying on Social Security for retirement because they don’t expect it to be there for them.
Besides, these bloggers don’t reflect the majority view on Social Security reliance. A recent AARP survey reveals that 76% of adults intend to rely on Social Security in retirement. Even in the 18-29 age segment, 62% are counting on Social Security. Many workers are willing to pay more payroll taxes now to sustain Social Security benefit levels in the future.
A common theme among the skeptics is that Social Security is an entitlement program that is not financially sustainable into the future. Those that study the issue carefully would disagree. One example is from a recent report of the Economic Policy Institute. Although some work needs to be done to improve funding, the idea that the Social Security retirement system will crash and burn completely is ridiculous.
Here is the link to the full article about the AARP study: Americans of all Ages Plan to Rely on Social Security.
I’m counting on Social Security when we retire, although not exclusively. Are you?
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Yes, and thank you for being the voice of reason. Social Security is not going anywhere. It may look a little different at some point but there really is a disconnect between the doomsayers and the political reality of the system. Do some adjustments need to be made to the system? Of course. Just as they have done in the past when they changed full-retirement age to 67 (for my age group), there will be tweaks: to retirement age, payroll tax rate, or taxed salary base. Is it doomed? I don’t think that’s anywhere near reality.
“Who do these young bloggers think will eliminate or cut Social Security retirement benefits and survive another election?”
The politicians THEY elect.
“Where will their retirement income come from?”
Their savings via 401k/IRAs and then SPIA-ed.
“the idea that the Social Security retirement system will crash and burn completely is ridiculous.”
Some very well studied experts say exactly that: http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html
It will be many years (and millions of dead baby boomers) before the younger generations will have the votes to kill Social Security. By the time that happens, they will want to keep it for themselves. I am very familiar with Kotlikoff’s work and admire it. The big problem yet to be solved is Medicare. You going to vote that out too?
“The big problem yet to be solved is Medicare. You going to vote that out too?”
I think we just did: http://assetbuilder.com/blogs/scott_burns/archive/2010/08/13/future-medicare-cheap-but-not-available.aspx
I will be ticked off if SS is not there when I get there in 15 years! For some reason the younger group thinks that it is a “free ride”. Hate to tell them, I have paid into the system for the last 28 years and my husband has paid for 35 years. If the government could simply refund our money with a modest interest rate + COLA I would walk away and do it on my own.
If my well off mother- who never worked a day in her life, can get it…I darn well better!
You can see people panicking. Our age group understands the government is great at grandfathering in the people who already have a program. Last year was the highest number of 62 yr. old applicants ever. Do they think we are dumb? My husband has 19 months before his 62nd and we are ready with the paperwork!
Am I counting on Social Security? Heck yes!