what happens when the babyboomers retire?

Question

I mean social security, the babyboomer generation are retiring now and they are all collecting. Will there be money left for us when we retire?

Answer 1

We're all screwed!

Answer 2

First of all, there is no money in Social Security. Not now, not ever. Social Security is a pay-as-you-go system. This month, retirees receive money that came in from workers and employers last month. So the question is not "will there be money left for us when we retire?" (there won't be, because there isn't any, and there never was), but "how big and productive will the workforce be when we retire?" or "how many workers will there be per retiree when we retire?"

The problem is not so much in the sheer number of baby boomers, it's in their ever-increasing life expectancy. If everyone retires at 65 and life expectancy increases from 75 to 85, the cost of Social Security doubles, because the average retiree draws pension for 20 years instead of 10.

So what are some of the possible solutions? Social Security benefits could be reduced (not necessarily across the board; means-testing could be used). Retirees could be encouraged to return to the workforce (or never leave it in the first place). Immigration could be liberalized to expand the workforce. General tax revenues could be used to pay for Social Security (which would mean either increase in taxes or decrease in spending on other government programs; personally, I hope that the defense will finally get the long-overdue ax).

Answer 3

no there wont be any money left. My best advice is to not worry about it. Retiring will never be an issue because there will never be enough money to retire because of inflation.

Things are so expensive and they will continue to rise. The pressure of technology advancement will never allow us to sit back and take it easy, we will always be in need of the next newest toy in order to survive. Look at computers, when I was kid a computer was a luxury. Now it is a must have and it will only get worse.

For now I suggest get smart with your money, work hard, and don't splurge. Learn investing and never rely on SS. If there is SS when you get to that age look at it as a bonus not as a way of life.

An just for the record my Dad gets barley enough SS to pay his rent. Me and my husband have to help support them. So the SS retirement is not what it is cracked up to be anyway-

Answer 4

Like they said start saving up money into an independent bank account and keep it for retirement incase social security goes bad. The thing about illegal imigrents taking social security isn't true a lager percentage of aliens pay taxes and socal security then american citizens. Besides I would be more concerned about the people that claim welfare and cheat the system

Answer 5

Absolutely not.

I am probably going to work until the day I die because I don't make enough to put anything away for retirement and I don't have any company pensions owed to me, like 70% of other Canadians.

Public policy experts are doing nothing about this ... believe me. Remember that old adage about old folks eating out of cat food cans? That's going to be us ... unless we organize and force the government to wake up, as well as force more employers to offer options to their employees that can be portable. This is a serious problem that the government doesn't care about ... why? Because they all have THEIR fat pensions taken care or promised to them when they retire, so why worry about the "little guy"?

Answer 6

Get a Roth IRA. Invest in mutual funds and add as much as you can to your 401K. Also, real estate is a good investment. Do your research and invest as much as possible. Never pay full price for anything that depreciates in value, like autos , electronics, boats, etc... Buy a house as soon as you can and rid yourself of all but one credit card for emergencies and Internet purchases. Social security if still there when we retire will not be enough to live on anyway; it is not now.

Answer 7

Babyboomers can't afford to retire. Many of them still have children that they are supporting, most of them have elderly parents that they have to care for and few of them have a retirement plans that can support them in todays economy. Don't worry, most of them will die of stress before they spend all your money.

Answer 8

We baby-boomers atre asking that very question. We were told long ago the money we put into the system is to be used by those who have retired, and the eneration that follows will do the same for us....Well, I'm Waiting!!!

Answer 9

That's exactly why you need to be able to set YOUR money up in an account just for you and nobody else. Abolish social sucurity. Besides, the government will give even more of it to illegal aliens who have not paid a dime into the system. We all need to protest until we get our way!

Answer 10

Start saving in a retirement account.

Answer 11

You'll be working too hard paying for our retirement to be worried about living so long. When you get RIP engraved on your stone at 64 you'll know you deserve it!