40% Of Millennials Think They Won't Receive ANY Social Security

Поділитися
Вставка
  • Опубліковано 1 жов 2024

КОМЕНТАРІ • 294

  • @jackwpetrov
    @jackwpetrov 5 місяців тому +83

    I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!

    • @MeltingRubberZ28
      @MeltingRubberZ28 5 місяців тому +2

      Exactly why I plan to collect SS the moment I can. Even if I don't need it, at least my kids can enjoy it.

    • @stevenorris1
      @stevenorris1 5 місяців тому +1

      I'm sorry about your brothers. Waiting for higher SS payouts can indeed feel risky. that's why it's important to consider planning for retirement early. Have you thought about working with a financial advisor? In my opinion They can help make your money work better for you in retirement and plan for unexpected expenses. It might give you more peace of mind and help you enjoy your retirement more. Best wishes!

    • @sophialharper
      @sophialharper 5 місяців тому

      @@eabhaconnor It's great to hear you're also working with her. My brother in the U.S. suggested her to me, and she's excellent at her job. Thanks to her, I can travel the world with the profits she helps me make🤭

    • @lauraallisonn
      @lauraallisonn 5 місяців тому

      @@eabhaconnor I'm glad you found the right person. Retirement gives us more time for things we love. Time is valuable, so do what makes you happy.

    • @brianmorg
      @brianmorg 5 місяців тому

      The age-old debate…take the minute you can or wait until 70. I have seen so many arguments supporting both that it’s mind-numbing. I think the right answer is to do what you’re comfortable with. If you’re happy with the decision, it was the right one.

  • @rickwilliams9001
    @rickwilliams9001 5 місяців тому +19

    I’ve heard this consistently for the last 40 years or so.
    Me in 1987: “I don’t expect to collect Social Security.”

    • @snakeonia7542
      @snakeonia7542 5 місяців тому

      Yup. Sacred cow they use as a political tool to bundle with siphon money off to all kinds of projects. Cant wait for the next reform bill.

  • @johnurban7333
    @johnurban7333 5 місяців тому +20

    30 years ago I was told by the old timers that I would never see Social Security. I still hear it now only except by the young people. One good thing was I did save other ways but I still need it to survive

    • @TheThreatenedSwan
      @TheThreatenedSwan 5 місяців тому +1

      But 30 years gains were still being made on phenotypic intelligence and we didn't have the same social capital/other demographic and cultural-political problems as today. For myself, 40 years is a long time for these institutions to promise to do the same thing they do today especially when the people making up those institutions will change composition multiple times

    • @RodneyDempsey-o8w
      @RodneyDempsey-o8w 5 місяців тому +2

      I was told in 1974 on my very first job when I recieved my first pay check my boss told me social security would be gone when I retire. It is still here, the government has known for more then fifty years there is a problem they will wait untill the last minute to do something.

    • @JunkSock
      @JunkSock 5 місяців тому

      @@TheThreatenedSwangood take. All bets are off as to what the United States looks like in forty years

  • @EricMoore790
    @EricMoore790 5 місяців тому +19

    That's why you have to be proactive and save and invest. The future is scary.

    • @snakeonia7542
      @snakeonia7542 5 місяців тому +1

      Was the past scary as well?

  • @Fishfood007
    @Fishfood007 5 місяців тому +5

    At 70 my dad could still out work me (I’m 33 at that time) he did not make it too 72 cause of cancer.

  • @mogamethanu
    @mogamethanu 5 місяців тому +2

    I’m not the most sophisticated, and maybe I’m naive, but I’d prefer they just put that tax percentage in my personal retirement account

  • @andysams6690
    @andysams6690 5 місяців тому +5

    Heck. Nearly half of younger Boomers and GenX felt the same way…

  • @JunkSock
    @JunkSock 5 місяців тому +3

    What if the government just let me keep my money? Just make a real welfare program for the elderly and stop lying to everyone

    • @stanton7847
      @stanton7847 5 місяців тому +1

      Because old people vote, and young people don't. It's that simple. Social Security was a great idea when population was expected to grow exponentially in the future, its nonfunctional now.

  • @jefferya.meixner8540
    @jefferya.meixner8540 5 місяців тому +5

    When I hear people say they don't think social security is gonna be there when they retire.I worry that politicians hear that and think we can still take their $ and then not pay them back in retirement.

  • @rdgale2000
    @rdgale2000 5 місяців тому +4

    I think they should remove the cap on the salary that is subject to Social Security, but also reduce the tax rates. I feel the tax rate is what hurts a lot of self-employed and family type business.
    I like what you said about the Australian system, but I wonder how you would transition from what we currently have to something like that.
    As always a great video. Keep up the good work.

  • @Travis_On_Trauma
    @Travis_On_Trauma 5 місяців тому +3

    I’ve heard this about early 2000s. It’s been said for over 20 years. It’s true in some perspective, however we are finding out that you will have to work in yours 70s to get that full benefit. No thanks! I’ll take it early as possible.

  • @Idaho-Idaho
    @Idaho-Idaho 5 місяців тому +10

    Very comprehensive discussion. Looking back at the initial development of the SS program: life expectancy was such that many workers would never reach age 65. That meant the system would not have to pay out for most. Roll forward to 2024 and workers are living into their 80's and 90's. Longer living and less workers paying into the system (ratio to workers and retires) means that the system is unsustainable in its current form. I began planing for retirement at age 29 when I first had access to a 401K. At no point did I ever factor in SS into my retirement income. Retired now with multiple sources of income none of which comes from SS. Someday I will apply, when I'm old enough.

    • @KungPowEnterFist
      @KungPowEnterFist 5 місяців тому +3

      They attempted to correct this in the 1983 reform which was based on the 1982 projections, and what ended up happening is they far overestimated the life expectancy. At no point since 1982 has actual life expectancy surpassed the 1982 projection curve on which the 1983 reform was based. According to those 1982 projections, we should currently be at 84 years of life expectancy. The actual today is 76 years. It peaked at 79 in 2014 and has been flat to down ever since. Put simply, we are living much less than previously thought.

    • @dig494
      @dig494 5 місяців тому +1

      @@KungPowEnterFist This is truth. We are not living longer and most jobs/careers in the USA are very hard to do when you are in your 60's. Even the big money managers, etc. Stress will kill you as fast as back breaking physical work. I am a retired civil engineer. Quit working at 56 just to prolong my life.....

    • @KungPowEnterFist
      @KungPowEnterFist 5 місяців тому

      @@dig494 They are attempting to gas light people into thinking they are magically living longer, healthier lives to cheat them out of even more SS benefits. Its sick.

    • @SandfordSmythe
      @SandfordSmythe 5 місяців тому

      The life expectancy was a little more than 65 yrs for workers.

  • @mitchbandalan9450
    @mitchbandalan9450 5 місяців тому +7

    Remove the income cap... done.

  • @mattbleiler7294
    @mattbleiler7294 5 місяців тому +35

    41 year old millenial. I’m not counting on it.

    • @SquidInkNoodle
      @SquidInkNoodle 5 місяців тому +2

      Same

    • @nmh2800
      @nmh2800 5 місяців тому

      Same

    • @johnurban7333
      @johnurban7333 5 місяців тому +3

      Funny, I said the same thing 30 years ago

    • @bseneca1997
      @bseneca1997 5 місяців тому +10

      You’ll get something, but possibly reduced, age eligibility pushed out, percentages reduced for claiming it early, etc. Definitely save and invest like you won’t get it and and amount will be a pleasant surprise.

    • @mtb5782
      @mtb5782 5 місяців тому +1

      It will be there. Stay off of TikTok.

  • @TerryMaddox46217
    @TerryMaddox46217 5 місяців тому +3

    Most Baby Boomers never expected to receive Social Security. One of the positive outcomes was that we planned for a retirement without it, but will benefit from it still being there. Recognition to Bob Dole for being the last politician to have enough courage to make structural improvements to the program.

  • @educatedwanderer9293
    @educatedwanderer9293 5 місяців тому +4

    I am a Gen X and I've been assuming SS will not be there for my wife and I and have saved and invested with that in mind. I also assume the same for my workplace pension which I am supposedly going to get.

  • @darkminatozaki
    @darkminatozaki 5 місяців тому +6

    Talking to my fiance about this, that we need to save and invest early and not rely to any of this.

    • @psychologie1054
      @psychologie1054 5 місяців тому

      The future of investing doesn't look too bright either though.

  • @IamAlan867
    @IamAlan867 5 місяців тому +3

    Can we stop referring to taxes as revenue and refer to it as tax burden on the working class?

  • @barnabusdoyle4930
    @barnabusdoyle4930 5 місяців тому +8

    They will push back the day you can start collecting SS, but that program will never go away. The number of moneyless elderly people that would create would be insane. 90% of seniors have SS as their only source of income. They are also the largest voting block in the country by far.

    • @rudyardganuelas6254
      @rudyardganuelas6254 5 місяців тому +3

      Evidently seniors were wasting their money on avocado toast and soy lattes to post on instagram back in the 70’s

    • @JunkSock
      @JunkSock 5 місяців тому

      Democracy was two old people and a child deciding what to eat the whole time 🫨

    • @barnabusdoyle4930
      @barnabusdoyle4930 5 місяців тому

      @@JunkSock I always thought democracy was 4 wolves and 2 sheep voting on what’s for dinner

    • @marakima
      @marakima 5 місяців тому

      actually it's 40% that only rely on SS

  • @kennethpreston9813
    @kennethpreston9813 4 місяці тому +1

    I’m not counting on social security at all, if I get anything it will be a nice surprise. I think we will see some sort of fraction of the total benefit amount that will be paid out to help improve SS solvency. I don’t know if existing SS beneficiaries will be grandfathered in at 100% of total benefits and those progressively further away from retirement will bear the largest cut to benefits. It’s impossible to see how all this will play out. Many people depend on SS so I hope the system can be fixed without hurting a lot of retirees

  • @robloxvids2233
    @robloxvids2233 5 місяців тому +4

    2:34 reduced TO 77% not "by" 77%

  • @ItsEricAZ
    @ItsEricAZ 5 місяців тому +3

    I agree economics needs to be taught in school and even simple concepts on saving could be used for math problems in the 3rd to 6th grades (If you saved half of your allowance what would it equal after 3 months, 5 months...) and a full class in the 7th or 8th grades. Sadly, school education can't teach them basic reading & athematic so I'm doubtful they can teach even a basic Econ 101.

  • @johnurban7333
    @johnurban7333 5 місяців тому +4

    Great,great video. You are wise beyond your years. Your presentation is so well thought out and delivered perfectly. I totally agree that people should be taught how to do finances and how to invest. People go right into spending and getting into debt without thinking of the consequences of the future. Your videos should be a requirement for everyone to watch. Thanks for all you do. These videos are an important service to help people. I look forward to your next topic.

    • @ErinTalksMoney
      @ErinTalksMoney  5 місяців тому +2

      Thank you John! 😊

    • @covertchannel
      @covertchannel 5 місяців тому +1

      Erin, you have such a wonderful speaking ability. You speak eloquently and I have never heard you use fillers like “um, you know?, or uh.” Your videos are always relevant and informative. Keep up the great work!

  • @MWILSON7
    @MWILSON7 5 місяців тому +2

    Funny, my generation said the exact same with in the 80s and 90s

  • @edwardstewart9085
    @edwardstewart9085 5 місяців тому +3

    Bottom line....if you don't start saving earlly...you may have a very rough retirement.

  • @ItsEricAZ
    @ItsEricAZ 5 місяців тому +3

    The only reason Congress got around to fixing Social Security in 1983 was due to its impending collapse in a few months. I doubt Congress will do better this time around and will only fix it at the last minute again in 2032 or so.

    • @ItsEricAZ
      @ItsEricAZ 5 місяців тому

      en.wikipedia.org/wiki/History_of_Social_Security_in_the_United_States#1983_Amendments

  • @ld5714
    @ld5714 5 місяців тому +3

    Good discussion Erin. I totally agree, we are woefully deficient and short on financial literacy. We have kids coming out of HS that can barely read, can't balance a check book (on paper or via computer) and have no concept of how finances or the world around them works. It should begin in elementary school and can easily be incorporated into the daily lessons and would be far more beneficial to them individually and society as a whole, than the deficient teachings dished out to them today. Larry, Central Valley, Ca.

  • @aftp4i94
    @aftp4i94 5 місяців тому +2

    As an Aussie, I thought I would chip in to explain our superannuation and pension systems.
    The federal government provided aged pension is paid (once you reach age 67) out of the annual government budget. There isn't a specific tax like in the US. The aged pension is income and asset tested (the home you live in isn't included in the asset test). Earn over a certain amount or have assets over a certain amount, and the amount of pension is progressively reduced until it stops above a certain threshold.
    Back in the 1980s and 1990s, it was recognised that there would be a massive increase in pension payments as the baby boomers hit retirement. The then government set up the superannuation system where employers were required to put a percentage of the employee's wage into their nominated superannuation account, which the employee could also contribute money to as well. The government was unusually clever in that they got employers, employees, and the unions to agree that the employer contributions would come at the cost of lower pay rises (at least initially). The superannuation accounts have some tax benefits that make it worthwhile to lock up the money until retirement.
    Right now the compulsory employer contribution rate is 11% rising to 12% next year. The total amount in superannuation savings is over $3.7 trillion AUD or abot 150% of GDP.
    Most working class people will enter retirement with a combination of money from superannuation and government pension. Wealthier and/or financially savvy people will save enough in their superannuation to generate a retirement income over the aged pension income cut off.

  • @PaulGosselinsr
    @PaulGosselinsr 5 місяців тому +5

    50 years in the workforce had me paying SS on 100% of my earnings. I can see a need for a cap on the earnings, do to employer having to match but I think the cap is waaaaay too low. It should be at least $250k

    • @bcase5328
      @bcase5328 5 місяців тому

      Change it to no cap on individual's contribution; tax all income sources like it is earned income (allow ROTH IRAs and the like post tax/pre-payment removals).

    • @philipstory3397
      @philipstory3397 5 місяців тому

      Stop making people who earn more pay more. It is unfairness to the highest degree. People who pay with no cap will never get back what they pay in.

    • @shawnbrennan7526
      @shawnbrennan7526 5 місяців тому

      But are you okay with those earners also getting larger payouts?

    • @bryanwhitton1784
      @bryanwhitton1784 5 місяців тому

      @@shawnbrennan7526 With additional bend points, yes.

  • @bryanparry4503
    @bryanparry4503 5 місяців тому +2

    The Australian system as you described it just sounds exactly like our combination of SS, IRA, and 401(k).

    • @mark.harvey
      @mark.harvey 5 місяців тому

      Yup anytime these conversations come up I point people towards Super. I don't live there but what I hear, it sounds well set up.

  • @johnl9135
    @johnl9135 5 місяців тому +1

    I don't blame them, I'm 54 and I even feel that I'm not going to get it when I reach my retirement age.

  • @NEWHAMPSHIREGUY
    @NEWHAMPSHIREGUY 5 місяців тому +1

    I believe the issue will be resolved. In 1983, they were 3 months from insolvency of SS before they addressed it. A 1% increase from 6.2% to 7.2% on employer /employee benefits "fixes" SS for the next 75 years. That in conjunction with other moves could get us to 100 years. a permanent fix beyond this is hard as no one can see 100 years out. Although not against removing the tax cap, I don't believe there are enough "rich people' over 168k to make the difference and solve the issue alone. I am generally against raising taxes but 1% seems a reasonable change to basically resolve the issue for 75 -100 years.. That means if you are 10 years old today your covered until age 85 - which is average life expectancy today.

    • @bryanwhitton1784
      @bryanwhitton1784 5 місяців тому +1

      Exactly! The solution is easy from a financial perspective but almost impossible from a political perspective.

    • @nicholasgutierrez9940
      @nicholasgutierrez9940 5 місяців тому

      1% more is basically forcing people to save at that point honestly. You get that back in the future anyhow.

  • @milkncookie
    @milkncookie 5 місяців тому +1

    Whether you think you do or do not, make sure you dont have to rely on it to retire.

  • @funguy1086
    @funguy1086 5 місяців тому +3

    37 here. I think it will still be there, but it will be anywhere from 50% to 75% of what it is today. The big shift in age demographics will make it tough.

    • @WhitneyYoung-i4n
      @WhitneyYoung-i4n 5 місяців тому

      This is my opinion too. They'll increase the full retirement age, cut benefits significantly, and possibly raise the % withheld from current workers.

    • @bryanwhitton1784
      @bryanwhitton1784 5 місяців тому

      Please see the post from NEWHAMPSHIREGUY above. The financial solution for SS for everyone currently living is easy. The issues are purely political.

  • @ICantSpellDawg
    @ICantSpellDawg 5 місяців тому +2

    The federal government should start taxing state lotto schemes to offset the deficit.

  • @brianmorg
    @brianmorg 5 місяців тому +1

    I’ve never included social security payments in my retirement planning as a Gen X’er. If it’s there, great…it’s a bonus.

    • @snakeonia7542
      @snakeonia7542 5 місяців тому

      Going to be a pretty decent bonus. Enjoy

    • @brianmorg
      @brianmorg 5 місяців тому

      @@snakeonia7542 That would be nice, but it will never be part of my plan. I can’t really call it “my plan” if I’m basing it on money over which I have absolutely no control.

  • @phuongha3113
    @phuongha3113 5 місяців тому +1

    High consumers spending is what drive America economy. Teaching them about responsible spending would tank the economy. Just my theory...

  • @ganthc
    @ganthc 5 місяців тому +1

    I think any SS reform has to untether the surplus funds from investing in Treasuries. It only causes slow growth in investment and deficit spending. As far as what those reforms are, I think it has to be a mix of the ones listed. We should raise the cap (tie it to inflation) or just remove it. This will help with funding in the near term. But it can’t be the only choice, because our population is shrinking, which means the workforce that supplies funds for the Gen Z elderly will run into issues. So raising the retirement age could help, but slowly, and mainly for the early retirement. So, early retirement could start at 65, full at 67, and max at 70. We’d need exceptions for hard labor professionals on the early part. Doing all three should keep SS going for another 40-50 years, unless our population really shrinks.

  • @jceddy1
    @jceddy1 5 місяців тому

    The main solution, not mentioned here, is how can we make the Government more accountability for the stewardship of our money!
    Increase Age --> How can we give the Government less accountability.
    Rework Formula --> How can the Government take more from productive individuals.
    Increasing Taxes --> How can we give the Government more money to squander
    Social Security was underfunded by $20B last year. Our Government just signed a $95B spending bill for Ukraine, Israel, Taiwan. Social Security would NOT be at risk if we took 1/3 of the money we fund foreign wars with and actually paid our at home obligations. Everyone SHOULD have the same answer and demand here from our Government. This is not political, but simply a mater of practicality and order of priority and obligation.

  • @dougbaron7853
    @dougbaron7853 5 місяців тому +1

    I always learn something new from your videos. Well done Erin!

  • @Evan_Horvath
    @Evan_Horvath 5 місяців тому

    I do not factor Social Security into my retirement. Whatever I end up getting is just extra. I max my 401(k), Roth IRA, and HSA every year. It'd be nice if I could opt out of SS, and get that 6.2% from my employer added to my 401(k) match.

  • @leehaskins307
    @leehaskins307 5 місяців тому +1

    I think investing some of the balance of social security in the general S&P market for long term buckets is a good idea… since its shrinking rapidly tho it is probably to late.. should have done that long ago...

  • @shawnbrennan7526
    @shawnbrennan7526 5 місяців тому +1

    I’m not sure it is correct to use the 3-legged stool analogy. In the 1930s, SS was essentially set up as “life insurance”: if you live too long, payments from SS will cover your living expenses. Retirement just wasn’t a thing back then; you worked and then you died. Plus, SS was also helping those who didn’t have pensions, like farmers.
    somewhere along the line people started thinking about SS as their retirement plan. Not a good idea, but here we are.

  • @Prime99
    @Prime99 4 місяці тому

    If I could take action today... I like the idea of investing part of the trust at least enough to offset inflation. I would raise the income limit to $1,000,000 with continued indexing for inflation. And after the 15% bracket I would add another 1% bracket to target incomes between $200,000 and $1,000,000 in the AIMI formula. I also would up the full retirement age again (based on US longevity maybe to 70) to a certain point in time where those of a certain age are grandfathered. Then I would raise the tax by a percent or more to eliminate any shortfalls.

  • @FranciszekPawal
    @FranciszekPawal 5 місяців тому

    Wife and I are 33 with about $800k in investments, excluding home equity and rainy day funds. I've always strived to stay on top of my finances, hoping that being disciplined in my 20s would allow me/us to have more breathing room in our 40s+ but it gets hectic, should we get a partner?

  • @FranciszekPawal
    @FranciszekPawal 5 місяців тому

    Wife and I are 33 with about $800k in investments, excluding home equity and rainy day funds. I've always strived to stay on top of my finances, hoping that being disciplined in my 20s would allow me/us to have more breathing room in our 40s+ but it gets hectic, should we get a partner?

  • @KungPowEnterFist
    @KungPowEnterFist 5 місяців тому +4

    @3:55 I don't agree with Erin's assessment on this at all. In 1983 SS did raise the retirement age by two years to 67 (under later proven false pretenses), but they did not increase the minimum number of years you had to work to earn a SS benefit. Gen Z and especially Millennials delayed entering the workforce vs any previous generation by a lot and that is just looking at any employment. Full time employment was delayed even more vs any previous generation. This is why the insolvency date has been pushed to the left so much in the last 25 years, and it has nothing do with people living longer than previously thought because that in fact is false. At no point since 1982 has the actual life expectancy surpassed the projected life expectancy under which the 1983 reform to raise the retirement age was based. Anyway, being asked to retire later is not the same thing as asking people to work more years. If you delayed entering the workforce, you should be delayed in collecting SS benefits. I don't think they should raise the retirement age, because we are living far less than what was projected in the 1982 study (the basis for the 1983 reform). I think they should raise the minimum number of years to qualify for a benefit from 10 years to 20 years and implement a minimum wait time before you can collect benefits after you hit 20 working years of, say, 10 more years. Also, everyone should have to earn their own benefit, i.e., no more deceased spouse transfer of benefits, uprate of benefits, etc.

    • @nicolasrumboll608
      @nicolasrumboll608 5 місяців тому +1

      Hold on a minute there. If you work less than 35 years you lose some of the benefits and if you work part time, the same loss will apply. Social security takes the best 35 years to work out your benefit so your argument and blame towards these seeming slackers is already baked into the system.

    • @KungPowEnterFist
      @KungPowEnterFist 5 місяців тому

      @@nicolasrumboll608 If you work less than 35 years, you never earned the benefits in the first place. You are not "losing" benefits. They were never yours to begin with. Because Gen Z and especially Millennials have delayed entering the workforce by so many years and in such large numbers, it has caused the SS trust fund to start being depleted a lot earlier than planned. That is what has caused the insolvency date to push to the left so dramatically ever since Millennials started entering their working years. If Gen Z (which is starting work earlier than Millennials did) and Millennials would have come into the workforce at similar ages like everyone before them, the SS trust fund would still be increasing. I sure like to blame Boomers whenever I can, because they are awful. But this one is not on them or Gen X. They and the rest of us are living a lot less than previously thought and computed, and this has already saved SS hundreds of billions if not trillions of dollars in reneged benefits. The longer your money is in an interest bearing account the more return you make. This is how the SS trust fund works. Gen Z and Millennials should have put a lot more money in the trust fund by now which would now be paying large sums of interest, and that interest would go to paying current beneficiaries instead of SS having to draw down the principal. SS actuaries never imagined we would have a generation with such a large percentage of members that would spend their teens, all of their twenties, and even some of their thirties not working. And we got two, back to back, though Gen Z is trying to turn the ship around.

    • @jeffbalog5161
      @jeffbalog5161 5 місяців тому

      No more deceased transfer of benefits? Many women are stay at home moms an d put their husbands thru school, they had very little income I don’t agree with your opinion, this just attacks the family again not good.

    • @KungPowEnterFist
      @KungPowEnterFist 5 місяців тому

      @@jeffbalog5161 You don't pay into SS, then you don't get benefits. Its pretty simple. This should have been implemented decades ago so that today it would already be in effect. Funny how you assume this is an "attack" on women.

    • @nicolasrumboll608
      @nicolasrumboll608 5 місяців тому

      @@KungPowEnterFist millenials graduated college into 2008 mayhem... Of course the great financial crisis destroying the prospects of getting those jobs in the first place is a huge reason many millenials didn't start work until later in life. Crap jobs in the gig economy as well...

  • @jimmyt7194
    @jimmyt7194 5 місяців тому +1

    I wish they would just do away with it. Let me keep my 7%.

    • @bryanwhitton1784
      @bryanwhitton1784 5 місяців тому

      That would be all fine and good but the benefit to the country would be minimal. What good would it do for the people of the USA if jimmyt7194 was doing ok in his retirement but 1/2 of the retired people, many through no fault of their own, are living on the streets for scraps and handouts. This ending was the reason for SS in the first place. I am willing to contribute to the whole for a more financially viable population. The elderly and retired contribute a great deal to the financial state of the country.

  • @Coolguyjason
    @Coolguyjason 5 місяців тому

    Since a young age, I have assumed most people will die before getting any Social security. I know overall life expectancy is high, but people who can barely afford housing and food, will not get much medical attention. Once people retire in non pension systems, they won't have the collective bargain healthcare current retirees have. Medicare does not really incentivise people to seek early help, and for most currently on employer plans, we already pay high fees to go. So, I think many millenials like myself assume we will be dead by 67-70, due to healthcare issues, than collecting social security. Also, will employers have to pay by the robot in future? Already we have lots of automation in work places reducing staff, so logically taxes towards social security will drastically drop, as more people are underemployed or unemployed.

  • @SuperAdRiCh7
    @SuperAdRiCh7 5 місяців тому +1

    I decided a bit ago to take my life into my own hands meaning I won't be relying on any social security at all. I'll be 41 this year and the next 12 years I will be maxing out my 401k til I hit 30 yrs at my job. Then I will wait it out til 60 to relax.

  • @KaironQD
    @KaironQD 5 місяців тому

    Hmmm does "individualization" as seen in the Australia system you mention "work" for the working class in practice? Is it a progressive system? Social Security as a program to me seems intended as a progressive system so I'm curious if super annuation has the same effect, or if it's elements of individual responsibility to contribute your own savings leans towards benefitting mostly upper income individuals as seen in the US IRA and 401k retirement plans.

  • @donh8833
    @donh8833 5 місяців тому

    They are likely right. And gen x will get 85%. But it will only go down from there.
    Only way that ss can continue is with gdp and population growth. Neither can survive forever. So eventually when it reaches its 0 first derivative (pay in to pay out slope) benefits start getting reduced.

  • @BP_PE90
    @BP_PE90 5 місяців тому

    The wage cap should be eliminated, and some provisions to tax employees who are paid through company stock. I think currently RSUs get a step up in basis at the end of the vesting period, and we could probably tax the capital gain for Social Security.

  • @kl3271
    @kl3271 5 місяців тому

    There is a movie out right now that might happen if they end social security...Civil War 😂😂😂 but not really...

  • @Gmac_Greg_M
    @Gmac_Greg_M 5 місяців тому

    SS needs to be phased out entirely. If everybody was forced to put what they pay in SS to a 401k based on the SP500 instead throughout their life they would be ALOT better off

  • @priscilla7538
    @priscilla7538 5 місяців тому

    My economics professor in the early eighties told us we contribute to social security to keep our elders from starvation, but we should expect to receive nothing but to know we did the right thing. I did not personally act on this knowledge soon enough, but it has haunted me. And yes, that is me with my kids encouraging them to start earlier. POI is a thing. Learn from my mistakes. Expect nothing. Anything you may receive is a complete bonus.

  • @AndrewSkeens
    @AndrewSkeens 5 місяців тому

    I do agree that there may be some money in the end for all of us, but let’s look at the real issue here one of them anyways.
    The max right now stands to get full benefits is 67 years old. You can start at 62 to get Social Security benefits partial. Men on the average live to be 73 to 74 years old so the majority of those who do get Social Security benefits majority of time is only women when men only lived to enjoy some full retirement from the government only seven years based on statistics. What’s the point of us even paying money into the system if we don’t even get to enjoy our retirement and live here long enough to actually enjoy it. The system needs to be more realistic, simply the COL calculations and the average lifespan per sex.
    Basically the whole system needs to be redone. The current one is not sustainable we need one more like Norway pension fund. It would also need to reduce the max age to gain full SS benefits to 60 and start as early as 55 instead.

  • @ExcitedIsoscelesTriangle-ot4rk
    @ExcitedIsoscelesTriangle-ot4rk 5 місяців тому

    People are already losing money ... the COLA is far behind the inflation rate ... as inflation continues to go up, your purchasing power continues to go down even if your are getting more dollars. So, for all intents and purposes, most people won't get much social security even if they're bringing in a couple thousand a year.

  • @shortstraw4
    @shortstraw4 5 місяців тому

    I'm saving 25 percent+ because I know America is toast. 35 trillion in debt with an aging population

  • @calebdoner
    @calebdoner 5 місяців тому

    Anybody who believes in taking responsibility and control of their own financial future doesn't take it into consideration. I'll probably get some, but I don't consider it in my calculations.

  • @kylen6430
    @kylen6430 5 місяців тому

    I’m a millennial. While I don’t think I won’t receive SS, I am not counting on it. I am saving for retirement as if I won’t receive SS, so anything I do get will just be a bonus

  • @LisaThinksALot
    @LisaThinksALot 5 місяців тому

    I think the big difference these days is that there's talk from politicians about cutting social security and generally "pulling up the ladder" behind Baby Boomers

  • @thetapheonix
    @thetapheonix 5 місяців тому

    Inflation is destroying whatever minuscule social security benefits you get or would get anyway. So in practice it’s already cut. Might as well promise to pay in bottle caps.

  • @nicolasrumboll608
    @nicolasrumboll608 5 місяців тому

    Aaaaand. Due to the opioid epidemic, labeled deaths of despair by Case and Deaton, life expectancy in the USA has plateaued for the last 10 years, further welding the argument for a raise in retirement age.

  • @MikeSTGL
    @MikeSTGL 5 місяців тому

    When I started my working career 32 years ago , I thought SS would be little when I retire. So we saved in our retirement as such ,will not need SS. Everyone should do the same . SS will not go way , will be changes in the future generations.

  • @red5811
    @red5811 5 місяців тому +6

    I was in the work force for 40 years and Social Security was always an issue. In my mind, one quick fix to Social Security would be to remove the income cap and continue to tax, but perhaps at a reduced rate.

  • @jeffbalog5161
    @jeffbalog5161 5 місяців тому

    The problem is there’s not enough workers to retirees ratio, men do not want to marry, less people having kids, or they are choosing small families without people the system fails, thank goodness our borders are open and we have young coming into our country. When we have enough the borders will close.

  • @jirehguy
    @jirehguy 5 місяців тому

    Erin confirming what I was arguing on her last video relating social security to low-information, reactionary brainlets.

  • @AprilAdair-wl2vw
    @AprilAdair-wl2vw 5 місяців тому +2

    I am a Canadian (who has never worked or lived in the USA) so I could be wrong about this but from what I have read I will qualify for spousal SS when my husband (USA citizen) retires. That is one of the most broken things I think with the SS system, why are they paying people that didn’t pay in before their spouse passes away.

    • @jeffbalog5161
      @jeffbalog5161 5 місяців тому

      Many women are stay at home moms and they take care of family.

    • @bryanwhitton1784
      @bryanwhitton1784 5 місяців тому

      @@jeffbalog5161 Correct and they still do it.

  • @bradleymaravalli2851
    @bradleymaravalli2851 5 місяців тому +1

    Thank you for giving several viewpoints on this matter and not making the video overtly political.

  • @will1122
    @will1122 5 місяців тому

    It's the parents job to raise the children to be functional adults, people need to stop trying to have the government raise the kids it doesn't go well.

  • @OffgridApartment
    @OffgridApartment 5 місяців тому

    I would rather it not exist at all or have the option of opting out. Given the opportunity to invest 15% of my income I know I could do better than the government can.

  • @chemquests
    @chemquests 5 місяців тому

    If you build your plan without the assumption of social security, then getting it will be bonus.

  • @gobot4455
    @gobot4455 5 місяців тому

    Frankly it shows how financially illiterate most people are, if they actually believe this.

  • @darrenjackson1981
    @darrenjackson1981 5 місяців тому

    I am 43 and i hope social security will be around by time i reach 67 cause hell i am tired as mother$$$$$$

  • @AnthonyAlvarado78
    @AnthonyAlvarado78 5 місяців тому

    The system is pretty broken. I would rather everyone just keep their money and manage it themselves.

  • @ron9665
    @ron9665 5 місяців тому

    2:36 I think per your graphic you are looking at reducing it by 23% (or it being reduced to 77%)

  • @CrayonEater94
    @CrayonEater94 5 місяців тому

    What if the government invested SS just like a 401k?

  • @pixperformance21
    @pixperformance21 5 місяців тому

    Nobody wants to go to the Social Security website where they explain what they're going to do about it.

  • @ironwill8596
    @ironwill8596 5 місяців тому

    I can see younger generation is not getting Social Security because why do you have to pay AI or a robot Social Security benefits

  • @angiepatterson6338
    @angiepatterson6338 4 місяці тому

    I do not think the system will go broke. The will raise taxes, lower benefits, and above all else raise the beginning retirement age.

  • @bobbert1945
    @bobbert1945 5 місяців тому

    Gen-Xers used to think that also. I suggest that people vote if they are worried.

  • @zerrot5302
    @zerrot5302 5 місяців тому

    Ok, then refund us everything we’ve ever put into it + interest and we’ll call it a day.

  • @ShatteredF1re7733
    @ShatteredF1re7733 5 місяців тому

    If only social security was the only tax I paid for nothing in return.

  • @snakeonia7542
    @snakeonia7542 5 місяців тому

    Donut hole, slight increase in rate for everyone but self employed seems sensible.

  • @hownwen
    @hownwen 5 місяців тому +1

    I'm finding conflicting info. So, if I worked the 35 yrs. Needed. I stop working at 60 but don't collect SS until 65. Will my SS go down each year I'm not working? Thank you!

    • @splitzgymnastics2009
      @splitzgymnastics2009 5 місяців тому +2

      No. SS takes into account your top 35 years of work. If you stop working at 60, and already have your 35 years of contributions in, your SS amount will not change. Except it will increase yearly with inflation.

  • @lulucly
    @lulucly 5 місяців тому

    why not offer retirement education thru the Jr. Colleges as well as at the high school level?

  • @jacobside2656
    @jacobside2656 5 місяців тому

    We can't let them raise the retirement age. We need to remove the cap. The higher tax isn't going to keep people from going for those jobs.

  • @clintperry799
    @clintperry799 4 місяці тому

    Cut off anyone who has not paid in ! So many women have keeeeds just to get a check . This must stop !

  • @bryanwhitton1784
    @bryanwhitton1784 5 місяців тому

    Man, the I got mine, screw the rest of you, attitude is strong with this group.

  • @lovethomassowell
    @lovethomassowell 5 місяців тому +1

    One solution that other finance geeks have pointed to is to tie the annual SS COLA adjustment to the pre-1980's inflation index that was used for SS COLA adjustments. They point out that the current COLA increases are high and that even a modest reduction would quickly result in a SS surplus.

    • @bryanwhitton1784
      @bryanwhitton1784 5 місяців тому

      The problem with that is that the COLA increases do not take into account the added cost of medical expenses. So as medical costs go up say 10% a year your COLA only goes up 2.3%. It doesn't take many years before the recipient is broke.

  • @_davidturner
    @_davidturner 5 місяців тому

    Wife and I are 33 with about $800k in investments, excluding home equity and rainy day funds. I've always strived to stay on top of my finances, hoping that being disciplined in my 20s would allow me/us to have more breathing room in our 40s+ but it gets hectic, should we get a partner?

    • @_davidturner
      @_davidturner 5 місяців тому

      I do hope to help educate younger people on finances after I leave my corporate 9-5.

  • @NeoSoulCrew
    @NeoSoulCrew 5 місяців тому

    The stock market doesn't fail until it does.

  • @robertbrown1021
    @robertbrown1021 5 місяців тому

    I'm totally against investing in the stock market, you have a job that allows you to invest in the stock market, social security should be bulletproof 0 risk.

    • @ian3580
      @ian3580 5 місяців тому

      You can invest with near-0 risk as well. They way they handle Social Security finds is like putting it under the mattress. If they made better investment decisions that money could grow and work for us.

  • @MeltingRubberZ28
    @MeltingRubberZ28 5 місяців тому +6

    35YO millenial here. Then will figure a way out to ensure those that planned/lived a modest lifestyle and therefore have a funded 401k/retirement will not get any of their money they are owed in the form of SS. Whether its raising retirement age to an unreasonable level, or making it that you qualify depending on net worth, or something to that effect - they will figure a way to screw us.

    • @funguy1086
      @funguy1086 5 місяців тому

      That would suck.

    • @MeltingRubberZ28
      @MeltingRubberZ28 5 місяців тому

      ​@funguy1086 likely going to happen bud. Plan for none. Or spend everything you have now and enjoy my SS contributions as well.

    • @bvoyelr
      @bvoyelr 5 місяців тому +1

      38 year old here: you young whippersnappers always have such a grim outlook on things. If you've lived as long as I have, you'd know that life isn't ever as great -- or as doom-and-gloom -- as the pop culture says it will be.
      But in all seriousness, regardless of what the future holds, *plan for social security to give you nothing*. If you have no expectations, you cannot be disappointed. Worst case scenario, you get exactly what you expected -- anything more is a happy accident that lets you have a little more fun in retirement.

    • @MeltingRubberZ28
      @MeltingRubberZ28 5 місяців тому

      @bvoyelr I am disappointed though. What I pay in SS every month would pay for the mortgage on another rental property. I'd take another rental over SS.

    • @splitzgymnastics2009
      @splitzgymnastics2009 5 місяців тому +1

      Welcome to the Republican Party!

  • @joe62845
    @joe62845 5 місяців тому

    I really think if the government wanted to keep the SS fully funded they could. They spend so much money on ridiculous things and if they rerouted some of that it could really help the SS funds.

    • @SandfordSmythe
      @SandfordSmythe 5 місяців тому

      SS is self supporting, otherwise it becomes welfare.

  • @TheThreatenedSwan
    @TheThreatenedSwan 5 місяців тому +5

    A privatized system where they are indeed normally invested would be better

  • @stewdogg42
    @stewdogg42 5 місяців тому +1

    Very educational. Thank you.

  • @thomasreto2997
    @thomasreto2997 5 місяців тому +1

    Fantastic job of our government to schedule this 2 years before my retirement.

    • @snakeonia7542
      @snakeonia7542 5 місяців тому

      It most likely won’t affect you then.

  • @Sashas594
    @Sashas594 5 місяців тому +5

    SS will exist but it will be paid out in minimal amount as means of survival to the poor only. People who relatively well off or with assets will not see SS benefits at all. No one knows what the limits of poverty will be to qualify for SS in the future but I think this will be the culprit.