Generation between Millennials and Gen Z fear that Social Security would not be a reliable source of retirement income for them.
Survey Revealed That Generation Between Millennials and Gen Z Doubts Receipt of Earned Social Security Benefits
Approximately 50% of Generation Z adults and those from the generation between millennials and Gen Z are doubtful about receiving earned Social Security benefits, according to a Nationwide Retirement Institute survey. Among those aged 18 to 26, 45% anticipate no benefits. Concern is also seen in 39% of millennials, while only 25% of Gen X and 10% of baby boomers share this view.
Older Americans, notably those aged 50 and above, including individuals from the generation between millennials and Gen Z, have grown increasingly worried about Social Security depletion, with 75% expressing concerns—a 9% rise over a decade.
Social Security’s future has gained attention in political debates due to the $32 trillion national debt. As a substantial spending program, it’s a significant expense. The anticipated insolvency within a decade has led to discussions about its sustainability.
Survey results indicated limited backing for alterations in funding within the cohort spanning from millennials to Gen Z. Roughly a quarter (25%) favored elevated payroll taxes, whereas 49% advocated heightened taxation for wealthier individuals. Moreover, 41% endorsed augmented employer taxes, and 40% leaned toward reduced taxation. Simultaneously, 24% aimed for a lower age of eligibility.
Resistance toward adjustments in eligibility criteria persisted among the same generational group. Only 19% supported an increase in the full retirement age, while 9% endorsed gradual benefits reduction, primarily affecting the younger segment within this demographic. A mere 6% embraced universal benefits reduction.
Gen Z, millennials, and Gen X, who fall within the generation between millennials and Gen Z, demonstrated a greater inclination to strategize additional retirement income beyond Social Security. They were also willing to delay retirement if benefits faced a 25% reduction.
Financial Peace of Mind: Strategies For Generation Between Millennials and Gen Z To Consider
Commence investment in self-directed individual retirement accounts (IRAs), like traditional IRAs, Roth IRAs, or individual brokerage accounts, early in life. This early start enables significant growth, making these accounts a primary retirement savings source.
Diversify income streams to mitigate risk. Avoid relying solely on a single income source.
Craft a personalized pension by exploring financial options that offer steady income akin to pensions or Social Security. Examples include single premium immediate annuities or deferred annuities.
Consequently, a significant number of generation between millennials and Gen Z holds the genuine belief that Social Security benefits might not be available for their retirement funding. Nonetheless, these individuals must realize that the absence of Social Security access shouldn’t prompt a shift in their financial ambitions.
Instead, this situation demands heightened concentration and an early initiation of planning to determine the appropriate financial tools required to achieve their financial objectives.