GEN Z: The issue of Social Security
Chloe Berg
According to a new survey, roughly 1 in 4 younger Americans believe Social Security won’t be available when they retire. According to Northwestern Mutual’s 2020 Planning & Progress Study, about 23% of Gen Z and 26% of Millennials believe there’s little chance they’ll be able to rely on Social Security to fund their retirement. Those numbers are compared to the 7% of non-retired Baby Boomers who similarly believe it is not at all likely Social Security will be there when they retire.
Since many retirees are living longer, there are more funds being taken out than going in. Starting this year, experts predict that Social Security will need to start going into reserve funds that it’s accumulated over the years to cover benefit payments.
How Long $1 Million in Savings Will Last in Every State
By Alexandria Bova of GOBankingRates |
Americans’ lack of savings has caused financial experts to paint a dismal picture when it comes to retirement. Analysts at Blacktower Financial Management Group calculated that you would need to save approximately $386,100 over your lifetime to retire at 67. That means the youngest millennials who currently are 24 already should have stashed away $8,775. And the oldest millennials, now 39, should have saved $140,400 for retirement by now. For those who haven’t aggressively put money away for the future, that number could be tough to swallow.
Pinpointing the exact amount that you need to save to retire comfortably is a difficult task and reaching that goal is even harder. According to the 2019 Planning and Progress Study by Northwestern Mutual, more than 22% of Americans have less than $5,000 saved for retirement, and nearly 50% plan on working past retirement age. Every