Are Millennials Ready for Social Security Reform?

social security reform (2)Government is very good at crowding out private sector activities.  When government borrows, it can cause interest rates to rise and crowd out more productive private sector borrowing.  When government expands welfare programs to help the hungry and homeless, the effect is the crowding out of individual giving to more efficient private-sector programs.  And decades ago, economist Martin Feldstein argued that the anticipation of Social Security benefits crowds out private saving.

Thus, it is no  surprise then that millennials are getting an early start on retirement saving, according to USA Today.  The reasons?  First, they have watched their baby boomer parents struggle to prepare for retirement.  Indeed, many of the boomer parents who are heavily mortgaged are finding themselves working longer than they originally planned.  Second, this age group is not relying heavily on the solvency of Social Security.  In fact, less than half of those surveyed plan on relying on public programs for retirement income.

For the majority of lawmakers in Congress who are politically  indebted to the AARP, they should listen to this younger generation.  If ever there is a time for Social Security reform, it is now.  Why not start the transition of allowing young workers to invest some of their payroll taxes into personal accounts? It is no longer a “fringe” idea, and it gives me hope that the younger generation realistically understand the limits of government entitlements.

Comments (23)

Trackback URL | Comments RSS Feed

  1. Gabriel Odom says:

    I know that I’ll never see the money I’m putting in to social security. Then again, I never plan to retire – I’ll just work until I’m dead. That way, I’ll never be a burden on my family, and any money I save up can be for my kids and grandkids.

  2. H. James Prince says:

    I’ll never forgive those old people who squandered Social Security. This Time Magazine cover is right on the money:

  3. Jack says:

    I’m opting out of social security. And AARP is an evil group of lobbyists.

  4. Tom says:

    Gabriel: That is a nice plan, but you have no idea whether you’ll be able to mentally and/or physically be able to continue working after a certain age. Not everything always goes according to plan in life and in that case, what do you think you would do? Use up your saved retirement money? What if it’s not enough? What if you can’t afford a nursing home, will you get separate insurance for all that? Just wondering because there are instances when individuals have to rely on some sort of collective good.

  5. Sam says:

    Social security won’t be around for whenever I retire. I also don’t think I’ll be able to rely on private retirement savings. So, I think it’ll be interesting to see what happens whenever this generation of young professionals begin to retire.

  6. Jordan says:

    I’m afraid that the younger generation are getting more and more liberal. The fiscal conservatives are ones who have actually had to deal with these problems. If you look at a political/economic scale.. the poor and the very rich are liberal.

  7. Yo Yo Ma says:

    This is such an interesting post, actually I have already started saving, in part, you never know what the future economy will look like. And think about this, I am just 22!

  8. Gabriel Odom says:

    If you keep working, you stay physically and mentally active. Even if I’m disabled in an accident, I will find some way to stay productive. This is an attitude to never succomb. My great-grandmother is now 97 years old, and she cares for herself entirely. She is still productive, and has her mind. She isn’t a burden on anyone. My grandfather is 76, and recently ran a marathon. It’s all a matter of staying healthy and having the right attitude.

  9. Dazzler says:

    I know there have been recent studies out stating that millennials are saving more despite the fact that they have so much student debt, also they are postponing making any big financial commitment like buy cars and homes. They are just renting and crowd sharing more frequently than before.

  10. Sandeep Kumar Patel Desai III says:

    I am all for this trend, I would like to compare my generation to that of the generation who grew up during the great depression. Also after reading the USA today article, I need to start saving and investing more! Now that I am young, this would a good chance. What do you think Pam, want to help me out?

  11. Kyle says:

    Interesting. Parkinson’s and Alzheimer’s must just be the result of sloth.

    You’ve just completely deconstructed the need for any form of social insurance. Guess I should dump all of my Wellpoint stock now before this catches on.

  12. Lloyd says:

    Many Baby Boomers will admit that they have really messed things up for future generations. That makes me think that we ALL need to not only retire later, but work harder and longer just to make up for all the damage that has been done by the Baby Boomers. If I am as productive as my great grandfather was at 94, then that may mean that I will do alright.

  13. Joe The Economist says:

    The article you cite seems to ignore the fact that there is a trillion dollars of student debt and the Pew Research that says poverty in households headed by someone 35 and younger is at historic highs – but the have a 401K…

  14. Refugia says:

    Testosterone is converted to dihydrotestosterone (DHT) which slows down or stops hair growth and produces weaker, shorter
    hair. Also sign up for my pet blog and let me know if you have
    questions or concerns regarding your pets.

    The magnitude, the effect rate, and the duration of the hair loss depend on the phase when the interference occurred.

    my website – skin care products nyc

  15. Klara says:

    Although HCG is only produced by females, HCG is an effective way to drop excess excess weight for the two genders.
    Failure to Diagnose an Ectopic Pregnancy – Is This Medical Negligence.

    The HCG diet uses h – CG drops, combined with a very low
    calorie diet for weight loss.

    Here is my web page; health And wellness

  16. Frederick says:

    Pretty! This was an extremely wonderful post. Thank you for providing this information.

    Feel free to surf to my weblog – Hellen

  17. Louie says:

    It is not a senior editor or a human resource manager but
    people that decide what to read and what to watch.
    When your site is linked by another reputed business, it helps the search engines find you.
    Stick with the one that seems to have the greatest response.

    My homepage social media marketing director

  18. Christena says:

    Any type of gold chain, ring, or earrings, can give someone a relaxed style,
    and also look very trendy for this season. Marketing
    professional with more than 10 years of experience
    in different products & services, widely networked by
    which successfully launched and introduced some of the leading
    brands in India, Consumer durables, Fashion online Products For More Details :.

    The list of celebrity fashion mishaps is seemingly endless.

    Here is my web blog … American Eagle Bandage Dress Review

  19. Angeles says:

    ” He had been admitted to the ER due to a heart attack.    Once you are on the calorie restricted diet and when the body demands energy, the HCG hormone will ensure that that energy is released from the stored fats and not from your lean muscle mass. A typical HCG program involves combining a low calorie diet and HCG usage.

    my website … natural weight loss

  20. Florian says:

    Your home plumbing system is always something to take seriously.
    Group bookings by corporate and colleges make the job easier.

    Does it provide the kind of security you are comfortable with.
    Stick it to the toilet driving the auger mind and turning clock smart attempting to boxing techinque the stop through as well as snag the particular obstruction regarding retrieval.
    Rooter, they offer unparalleled plumber Richmondand plumber Burlington throughout the country, 24 hours a day.
    To perform plumbing work, it is essential to have the
    right tools to work. However, what is not always clear is what actually constitutes misrepresentation. First, tighten the nuts by hand,
    and then with a basin wrench. If you own a business and rent your office space, do you need renter insurance for businesses.

    Material usage is controlled through a sophisticated automated purchasing process that ensures aggressive cost management.

    Here is my web-site … bathroom designs Pompano beach

  21. Thelma says:

    We offer a whole range of SEO Services in Singapore.
    The best examples of the changing marketing environment right now probably
    can be found in the movie industry, with such films
    as “Snakes on a Plane” and “Cloverfield” being marketed exclusively through
    the Internet and relying to a great degree on social networking websites spreading the word.
    There are many different features like your own profile, blogging
    updates, Street Talk, the ability to comment and like Street Articles Facebook page, Street Articles Google +
    page, Street Articles Twitter Page, and the ability to interact with the owners (not to a great extent, they are quite busy).

    Feel free to surf to my web page :: mobile marketing

  22. Aaron says:

    Face lift involves procedures to smooth out wrinkles and
    lines by surgically tightening the skin of the face.

    Normally students can finish their nursing degree through this program within three years, in which the first year will be devoted to entry-level
    nursing course work. It is normal to have slight bruising and swelling for about ten days.

    my blog post … plastic surgery virginia beach (Aaron)

  23. Jacquelyn says:

    There is Playboy, Cosmopolitan and such others which people can buy and read about their stars.
    ‘ Besides being in financial need, recipients must also be passing
    all their classes and be recommended by their guidance counselors.
    everybody would definitely be a lean person, you can take it easy.

    Here is my web page boutique cheap dress websites

Leave a Reply

If you want a picture to show with your comment, go get a Gravatar.