2025-05-02 11:21:43

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Social Security benefits play a crucial role in the lives of American retirees. The monthly payments, especially, are important to individuals with little to no savings. People have raised an alarm about the Social Security funds eventually running out. Which raises the question: Will millennials and Gen Z even receive Social Security benefits by the time they retire? The accrual system works in such a way that current workers are paying their taxes that fund the social security checks for the current retirees. Leon Turkin, who is the owner of Turkin Mortgage, gave his two cents on the sustainability of the program. “The program is having some hard times financially, but it is not going to be wiped out,” he noted. Turkin explains how if the funds for the program were to run out, the benefits would be paid by payroll taxes. The financial advisor also noted that if the funds were on track to run out, the government would have to intervene by taking measures. One way would be to raise the retirement age or “adjust tax rules to extend the program’s longevity.” The Social Security trust fund is predicted to run out by the year 2035. It has become crucial for the government to start making reforms to ensure the sustainability of the program. Reports reveal that millennials can possibly expect a 17% reduction in their benefits if the sustainability of the programs continues to be threatened. CEO of ContractorNerd, Charlie Hughes, shared how it isn’t wise for the younger generations to “assume” that they will be receiving their Social Security benefits. “Millennials and Gen Z can’t assume they’ll receive the same benefits as today’s retirees,” Hughes pointed out, as reported by Nasdaq. In 2011 the Social Security Trust Fund had approximately $2.67 trillion. Bernie Sanders said that by 2023 it would have around $4.2 trillion. It peaked in 2020 at $2.9 trillion and has been running a deficit ever since. The fund is now projected to run out by 2035. If that… pic.twitter.com/K5ohVqbNqt — MAZE (@mazemoore) March 2, 2025 He advised the younger generations to plan an alternate source of income that would come in handy during their retirement. The CEO went on to point out how times were changing and the policies might not be as “favorable” as in the past. It might be wise for millennials and Gen Z workers to explore early investment options as a precautionary measure. A current beneficiary receives a monthly payment of approximately $2,000 from the Social Security Administration. With the current high cost of living and inflation in most of the city, retirees cannot rely on monthly payments alone. Leon Turkin advises individuals to have another source to rely on during their old age. US social security trust fund runs out in 9 years. pic.twitter.com/kCXmjLjeVH — Pythia Capital, No Brainer (@PythiaR) April 15, 2025 “To secure a good standard of living, you need a second pillar of savings,” Turkin notes. personal investments, pensions, retirement accounts like a 401(k) or IRA are a few options an individual can invest in. Turkin points out that a person who is solely relying on Social Security benefits to get them through their later years of life might face “financial hardship.” Charlie Hughes seems to be on the same page when it comes to long-term planning. “Pairing Social Security with savings and investments is crucial for securing your financial future,” the CEO of ContractorNerd shares. He also advises future beneficiaries to save consistently while keeping up with the policy changes.