A Timeline Clarification for Millennials–Preparing for the Future of Social Security - GoBankingRates.com
Social Security’s impending solvency crisis has been in the news quite a bit in recent months and, unfortunately, much of the media accounts have created a misunderstanding of what’s really in the cards for this critical senior support program. Specifically, the use of terms like “bankrupt” and “going broke” creates an incorrect picture of the program’s trajectory, overlooking the point that after full depletion of reserves, Social Security will continue to pay benefits but at a lower level. Yes, that’s a concern–a serious concern–for those already living on their monthly Social Security benefit, and it remains incumbent on Congress to address the issue while there’s still time to avoid severe consequences for vulnerable seniors.
For those in the demographic cohort labeled “millennials,” also referred to as Generation Y, Social Security’s solvency dilemma presents a different challenge. As suggested in a post by GoBankingRates on their website, future retirees in this age bracket–i.e., those with birth years in the 1981 through 1996 range–have a longer horizon to prepare for the future structure of Social Security, whether it’s a diminished benefit program or one that has been restructured to adapt to 21st century economics.
The GoBankingRates article discusses the consequences of congressional inaction on the solvency problem, the potential that cost-of-living adjustments will continue to be inadequate, and the possibility of a setback in the program’s full retirement age. Overall, the article suggests that the present is the right time for Millennials to acquire an understanding of Social Security and how it will play a role in their retirement planning strategy. Read the article here.