Wake Up Call to Gen X on Social Security!

Kristin Maschka, author of This Is Not How I Thought It Would Be: Remodeling Motherhood to Get the Lives We Want Today, calls in her blog at Huffington Post for Gen X to lose their skepticism and cynicism about Social Security.  She points out the facts that while the system faces a shortfall (in about 20 years), this is one "very fixable problem".

It is disheartening to hear Boomers declare their intention to sign up to start benefits at age 62, "...before they run out of money."  For most Boomers this is costly mistake, resulting in a decrease in lifetime benefits that can easily exceed $100,000 and much more for a married couple.  Even more disheartening, post-Boomers commonly state their belief that "Those benefits won't be there for me at all."

In fact the benefits will be there, in all likelihood in full as scheduled, since the required fixes are relatively mild and pain free.  I applaud any effort by thought leaders like Kristin to get out the word!

Social Security will be there for young workers!

Mark Miller's excellent article today on Reuter's chronicles the widespread pessimism common among younger workers about Social Security:

Some 76 percent of young Americans don't think Social Security will be able to pay them a benefit when they retire (Gallup); 86 percent would like to divert the taxes they pay to Social Security into private accounts (Pew Research Center); 48 percent of Americans under 40 think the system is in crisis and about to go bankrupt (Lake Research Partners).

I hear this from younger workers (under 40) all the time:  "Social Security?  That's not going to be there for me..."  Not surprising given that so many of their parents have the notion that they need to start their benefits right away at age 62, "...before they run out of money."  Just as two wrongs don't make a right, two incorrect perceptions don't make a truth.

Fortunately, Mr. Miller steers us to a thoughtful report, A Young Person's Guide to Social Security, by  Kathryn Anne Edwards, Alexander Hertel-Fernandez, and Anna Turner.  This thorough document carefully explains the Social Security program, addressing both its strengths and weaknesses.  They review the many fixes that can reasonably be implemented to stabilize the system - including for those who are just now entering the workforce.

Whether a Baby Boomer or a twenty-something, the smart financial bet is that Social Security will be there for you when you start your benefits, so you should plan accordingly.