Social Security: Why It Matters for Young People, Not Just Retirees – The New York Times

Paul Annash noticed that he was owed $335 in Social Security benefits each month in payroll taxes, and he wants that dollar back.

“If there was a way to opt out of Social Security, I would do it,” said Unnash, a 27-year-old technical writer from Milwaukee. “I don't have much faith in it. I know there's probably something to be gained from it, but people are living longer and now we have huge baby boomers retiring.”

An active saver who saves 20 percent of his paycheck into a retirement account, he would like to use his Social Security payroll taxes to invest in the stock market or pay off student loans.

Unnash's views on Social Security are not uncommon among young Americans. Research shows that the majority of young people are more pessimistic about the program than older youth. Gallup poll, For example, research shows that only 37 percent of Americans between the ages of 30 and 49 expect to receive Social Security benefits when they retire. This compares to 66 percent for people aged 50 and older.

Social Security is not on its way to disappearing, but young people's concerns are understandable.

Last year, the program's Retirement and Disability Trust Fund had $2.79 trillion in reserves. Expenses have exceeded non-interest income since 2010The main reason for this is that the declining birth rate reduces the proportion of workers who pay into the program and increases the number of people receiving benefits. As a result, the trust fund's reserves are projected to be depleted in 2035. At that point, the program will be able to pay only 83% of promised benefits to current and future beneficiaries, according to the latest projections. Social Security Trustee. This is equivalent to a flat 17% reduction in benefits.