When we think about Social Security in the United States, the image that comes to mind is of retirees relying on the benefit to supplement their income.
However, this system is not just a concern for those nearing retirement. In fact, it also directly impacts young workers, even if many don’t realize it.
Young People’s Distrust and the Reality
Paul Unnasch, a 27-year-old technical writer, represents the feelings of many young Americans. He sees part of his salary deducted for Social Security and wonders if he will actually receive that money in the future.
A Gallup poll shows that only 37% of Americans aged 30 to 49 believe they will benefit from Social Security when they retire, while 66% of older adults have that hope.
The truth is, this distrust exists for a reason. The Social Security trust fund holds trillions of dollars in reserves, but expenditures have exceeded revenues since 2010.
With an aging population and fewer workers contributing, projections indicate that the funds will be depleted by 2035, reducing benefits to only 83% of the promised amount.
More Than Just Retirement: Lifelong Protection
Despite concerns about the future, many young people don’t realize that Social Security already benefits them today. About 25% of recipients are not retirees. The program includes payments for people with disabilities, families of deceased workers, and children who depend on these resources to survive.
For example, if a young worker passes away and leaves a spouse with two children, Social Security benefits are equivalent to a life insurance policy worth nearly a million dollars.
This makes a huge difference in the lives of these families and shows that the system goes far beyond retirement.
The Gap Between Expectations and Reality
Young workers tend to overestimate their ability to save and underestimate the importance of Social Security.
While many expect to rely primarily on individual retirement accounts, such as 401(k) plans, the reality is different: the majority of retirees in the U.S. depend on Social Security as their primary source of income.
This happens because many workers, even those who save, do not accumulate enough to ensure a comfortable retirement. Social Security provides a lifelong income stream, protected from inflation and independent of market fluctuations.
In times of economic crisis, such as in 2022, these benefits serve as a crucial safety net.
What Can Be Done?
The stability of Social Security is a controversial topic! Some proposals include increasing taxes on the wealthy or raising the retirement age to balance the system’s finances.
Regardless of the solution chosen, it is crucial for young people to follow this discussion and understand the impact it will have on their future.
Social Security is not just a benefit for the elderly; it is an economic protection system that can affect anyone at any time.
The sooner younger generations understand its importance, the greater their ability to influence the future of the program and ensure it continues to support future generations.
