25 and younger: What will you do in 2040 when Social Security runs out?

Question

We are all putting into a system that we will ultimately get nothing out of in return. We are paying for the elderly now but no one will be paying for us. We will be on our own. I know most ideas all have their pros and cons... but does anyone have a legitimate idea that could work to the benefit of my generation?


(As for me, I am already going to start my 401K early and not worry about depending on the government but I wanted to see what other ideas people have).

Answer 1

It would be best to start a retirement account with tax benefits(401K, IRA, etc) and contribute to it your entire working life. By the way these accounts are being encouraged to all workers everywhere, it seems inevitable that popular opinion will elminate Social Security before we can collect.

Next question: What do we do about Medicaid and health insurance during retirement? Many of us will lose health benefits when we leave our jobs, and out-of-pocket expenses are going to be tough to afford at that age.

Nothing wrong with Social Security in my opinion... except the way our government has abused the funds. It will still work for us if it is run the correct way. (BTW, The age eligible to collect needs to be raised periodically to adjust for people living longer. Don't argue about it.)

BTW, I will be 61 in 2040, still too early to collect SS under the current age guidelines! ;-)

Answer 2

Here's what is going to have to happen in order to keep Social Security going. Lift the cap on Social Security "contributions" (currently only about the first $100,000 of individual wage earners' salaries are taxed.) Increase the FRA (full retirement age) to perhaps 72. Decrease the amount available to early retirees to give them a greater incentive to work longer. Permit an investment of perhaps half your contributions to a balanced national mutual fund, with people who choose not to invest in this getting a lower return for Social Security payouts. If the Government does not give less out than has been promised, it will bankrupt the government.

Answer 3

The only way there will be no money for you when you need it from the Social Security System is for the current government to do away with it. Thus telling those young people who would be working to support YOUR Social Security they will not be paying into it any more. Consider this: the one reason why the Republicans have pushed so hard to eliminate SS is not for the benefit of the employee, but for the employer. The Republicans are more interested in eliminating the corporate contribution to SS, than the welfare of future seniors. When a Repbulican suggests something that sounds like a benefit for the individual, just follow the money and you will see there is a much bigger advantage for the corporation(s).

Answer 4

As a result of the Aussie federal budget last night the retirement age has been lifted from 65 to 67 to be fazed in over the next few years. This is to help pay back all the money given out in the stimulus packages. Not everyone received the payments but we now have an estimated debt of $9000 per person adult & child to be paid back. Please correct me if I'm wrong on that one. As for how to support the disabled those that can work should look at doing so. So they can say they support themselves. There will be a lot of disabled people who already have a job or are looking. What needs to happen is for the employers to give them a far go & not say "I'm not hiring anyone who is disabled" There are differing degrees of disablement & bosses should take that into consideration. I have an intellectually impaired daughter that will be able to work so I will be encouraging her to find work when the time comes. She will be able to say with pride that she makes her own money. I will still be there to support her whatever happens & if that means I have to work 2 jobs to do it then I will.

Answer 5

I'm saving up money on my own, basically doing what the system tries to do for me because most Americans can't / don't save money for retirement.

I'm doing the 401K thing now. It's great if you can have this up and running when you're 25, you can put away less of your paycheck and get a nice return.

Answer 6

I am in the 401k boat as well. The only thing about that that worries me is one day some politician will look and figure out that there are billions and billions of dollars in 401k's and try to figure out a way to get at that money.

Answer 7

I also hope to not have to rely on the government.

I like the idea of placing a small portion of our SS account into a private account, in order to allow for more capital growth, and to help keep the government's hands out of the proverbial cookie jar. Of course this idea was shot down previously by Democrats. Whatever it takes to keep as many reliant on the government as possible, I guess.

Answer 8

the s.o.s. is a trust fund not a tax it was set up to be untouchable but guess what LBJ and his gang found a way to steal it and they haven't stopped yet and that's the problem. At this time the feds own the SOS trust over 2 trillion and it will never be re payed. Are any running for president talking about this , hell no

Answer 9

Spreading false rumors about Social Security being in trouble has been a favorite conservative tactic to undermine confidence in it for years. Look at it this way, if they can afford $1.5 trillion for an unnecessary war I don`t think you will have to worry because of what will happen to politicians when tens of millions demand their entitilements. In 1983 the conservatives forced recipients to pay income taxes on their benefits and they have been otherwise constantly chipping away at it with reduced inflation adjustments and higher retirement age requirements. Their recent attempt to turn the money over to Wall Street with "private accounts" was thankfully defeated. Social Security will be there for you if you fight the conservatives who are trying to destroy it.

Answer 10

If kids would take care of parents as the parents took care of and raised them there would be no need for Social Security for a large percentage of Americans.