I’m officially part of Generation X and with my expected retirement timetable it seems unlikely that Social security will be around for me the way it is for grandparents, or even my parents. If the program still exists (a big IF) then it will almost certainly be in a reduced form.
Smart financial managers in my generation don’t even count Social Security in their retirement equations. Why would you? It’s a promise from a government that loves to break its promises. Yes, its our money and we deserve to get it back, but when is life ever fair?
When I do my retirement spreadsheet calculations the box for social security is always just considered fun money. I will invest now as though that box will be forever blank. If I happen to get something from Uncle Sam then it’s a bonus, money that can be used for travel, gifts for my future grandkids, or extra nights out on the town. It is not something that I will pay the mortgage with. It’s never smart to count on something before you actually have it. Nothing is guaranteed except death and taxes. Social security is basically a tax the government owes us, so I guess even taxes aren’t fully guaranteed for everyone.
Investment brokers love to give you sample calculations for what your retirement fund could look like with so much invested and so much return. I remember when mine told me to expect 10% return and I forced him to reduce it to 7% for his calculations. Even that may be too high. They don’t like to tell you about market crashes such as what 2008-09 saw. The world is a scary place and you must start early to protect your own future. It’s not the government’s responsibility to be sure you have a cushy retirement.
Probably the only way to save social security is to raise taxes. No one really wants that, but without it the program would collapse and there’ll be a riot in this country. Millions of people are forced to count on that money because they were never taught any differently and trusted that it would be there. Just like thousands of people counted on huge perks and pensions from the auto manufacturers and now all that money is gone. Nothing is permanent. If you’re in your 20s and 30s your best bet is to forget about the government checks and do what you can to protect yourself on your own terms. Everything else should be a bonus.
About the Author
The author is multi-interested in a variety of things including maclaren double stroller since she has kids and also designer diaper bags.