Will Millennials Receive Social Security Benefits?
Many are concerned retirement funds won't be available
If you're worried about the future of Social Security, you're not alone: Eighty percent of Millennials are concerned that Social Security funds will not be available to them when they retire, according to the 18th Annual Transamerica Retirement Survey, published in 2017.
Although the Social Security Board of Trustees has reported that Social Security trust fund reserves will likely run out by 2034, it doesn’t mean that the program will come to an end. “Young people frequently ask: ‘Will Social Security be there for me?’" wrote Carolyn Colvin, former acting commissioner of Social Security, on the Social Security Administration’s blog in 2016. "I take this question very seriously, and I am sure Social Security will be there in the future.”
Even if the reserves run out, people and employers will still be paying the required Social Security payroll taxes. However, that money might only cover around 75 percent of expected future benefits, according to the Social Security Board of Trustees. That means if nothing changes, the amount of benefits paid out will likely be smaller, and a larger portion of Millennials' retirement funds will need to come from sources beyond Social Security.
How Much Social Security Money Will I Receive?
If you're a Millennial, it would be difficult at this point to determine exactly what Social Security benefits would be available to you and at what age you'd be able to access them.
The amount of Social Security benefits you can receive is determined by a number of factors, and any future changes to related laws would impact that. The age at which people begin to draw on Social Security has already changed, as have the amounts that are paid out each month. As such, it's safe to assume that you should not rely on Social Security entirely for your postretirement income.
If you want to retire comfortably, then work on creating a resilient retirement plan. Determine what and how you need to save now so that you can retire no matter what happens with Social Security.