Gen Z and millennials may not be able to count on Social Security
Jordan Awoye, managing partner at Awoye Capital, has an op-ed for CNBC here where she cites a Northwestern Mutual 2020 Planning & Progress study that states 23% of Gen Z and 26% of millennials actually believe there is little likelihood that they’ll be able to rely on Social Security to help fund their retirement. She notes that by 2033 the Social Security Trust funds will be exhausted. But Awoye has concrete suggestions for younger folks who are living with this reality below. Full piece here.
- Start investing in a self-directed individual retirement account, traditional IRA, Roth IRA or an individual brokerage account. Getting started early in life allows these accounts to grow and become the primary source for retirement savings.
- Find ways to diversify your sources of income. Do not have all of your income coming from one place.
- Create your own pension. There are a variety of financial options that can give someone a similar low-risk consistent income stream that a pension or Social Security would provide — for example, a single premium immediate annuity or a deferred annuity.