“What if We Don’t Shore Up Social Security?,” by Bernice Napach, ThinkAdvisor
“What population groups will suffer the most if the federal government does not address the shortfall in the Social Security Trust Fund for retirees? Not surprisingly, the youngest population cohort would suffer the biggest deficits because its members would be collecting smaller payouts for longer, according to a new report from the Employee Benefit Research Institute (EBRI). The oldest age group would suffer the least. … Individuals ages 35 to 39 will have to save an additional $58,000 in their retirement funds by the time they reach 65 to make up for the pro rata cuts in Social Security benefits, according to EBRI’s baseline scenario. Their retirement savings deficit would be 17% larger than more recent EBRI projections. Both retirement shortfalls are based on present values, in 2019 dollars, at age 65.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
First we make the young people pay for our generous Social Security benefits. Then we make them pay for their own benefits that they won’t receive because we ran Social Security dry. What a mess!