Doesn’t matter if they’re young or old, more people plan on relying on Social Security for a greater portion of their income in retirement.
Once again reinforcing the need for 401k-style savings, Gallup finds this increase in projected reliance on Social Security is seen among both younger (aged 18 to 29) and older (aged 50 to 64) non-retired Americans. Views of those aged 30 to 49 remain essentially unchanged over the past 16 years, the period of the organization’s analysis.
However, younger Americans have consistently been less likely than older Americans to say they will rely on the popular government program when they retire.
“This may reflect what young people read, see and hear about the long-term future of Social Security,” according to the polling organization. “Experts estimate the Social Security trust fund will run out by the mid-2030s, meaning that, without payroll tax increases or economic growth exceeding expectations, benefits would need to be cut.”
Those currently younger than 30 will first reach age 62, the earliest possible year to get benefits under current law, in 2049.
Gallup notes that exactly what benefits will be able to be provided to them at that point is uncertain, which means there is some logic in young people’s lower inclinations to say the program will be a major source of their retirement income.
“Previous Gallup research has shown that almost two-thirds of those younger than 50 doubt they will receive a Social Security benefit when they retire.
“Although 18- to 29-year-olds remain less likely than older Americans to say Social Security will be a major source of their retirement income, their projected reliance on Social Security has edged up during the past 16 years.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
