As Social Security turned 83 last week, many millennials are convinced they won’t collect a cent.
Indeed, “80 percent of millennial workers say they’re worried Social Security won’t be there for them,” according to a recent study by the Transamerica Center for Retirement Studies.
That means millennials — those born around the turn of the century — “face unique concerns for saving for retirement,” said Mark Henry, an investment adviser.
While most respondents in the Transamerica Center study expressed concern about Social Security, the yearly poll also found something odd.
“Most workers are counting on Social Security as a meaningful source of income in retirement,” according to the study.
But at current funding levels, the system’s trust fund will deplete its reserves and will only pay part of its old age and disability fund obligations beginning in 20 years, according to recent Social Security figures.
Current funding “shows that Social Security is fully funded until 2034, and after that it is about three-quarters financed,” the Social Security trustees wrote.
Also, the Social Security disability insurance trust fund “is projected to become depleted sooner.”
A problem for millennials, unlike previous generations, advisers say, is that any cuts to Social Security would hurt them more than previous generations. That’s because they tend to save less and will likely live longer, advisers say.
“I look at the projected Social Security payment estimates for my clients and I assume about 15 percent less in drawing up retirement plans,” said Charles Hughes, a financial planner.
Assuming the worst, millennials should “start saving on a regular basis as soon as you can. It doesn’t have to be a lot at first, but do it every pay period. Be a tortoise. The tortoise is the one that wins,” Henry said.