Social Security: Millennials could lose more than $500k of their benefits

Millennials could lose a large amount of money by the time they start collecting a Social Security retirement benefit

Social Security Millennials

Social Security Millennials

The economic problems that many millennials face are not just in the United States. Everywhere in the world, any millennial can find themselves with very serious economic problems. And we are not just talking about the present, we must also take into account the future and their Social Security. Most millennials, if they keep doing the same as they are doing now, will have serious problems with money and Social Security when they apply for retirement. There are several reasons for this.

The main reason for this statement is that there will not be enough money in a few years to pay pensions. According to the trust fund, by 2035 there will not be enough money, so they will only be able to pay 80% of the benefits. This means that over the course of their time as a pensioner, millennials could lose more than $500,000 on average. Specifically, about $675,000 each.

Why won’t millennials have Social Security?

The answer is simpler than it sounds. If there is no money in Social Security funds, there can be no money for retirement benefits. With this information it is easier to understand the whole situation. For that very reason, around the year 2035, much of the sources will dry up, so it is possible that many millennials will lose a fortune during their retirement years.

One of the big reasons funds are expected to run out is because of inflation. Because of the increase in prices, the COLA has to adjust again, so current retirees get paid more, but that causes the money jar to run out sooner. And without too much income due to lack of jobs and people to contribute to you, Social Security runs completely dry.

Millennials could run into trouble with Social Security and could lose their paychecks

What can millennials do to have a good retirement?

There are several ways to arrive at a good retirement plan. The first of the options is to save independently. That is, you can save part of your salary every month to enjoy it in the future. In this way you will not pay any commissions to anyone and you will have your money at your disposal. Another way is to make a pension plan, no matter if IRA or 104(k), it all depends on what you are looking for at that moment.

Aside from that, another option is to try to be debt-free when you retire. If you have your house paid off, that would be perfect. After that, it’s a matter of organization once you ask for retirement. Try not to spend more money than you have and try to save as much as possible. If you do that, you will probably have a good retirement even though Social Security funds are dropping drastically.