Rappahannock millennials: Social Security will be there for you
Millennials can be forgiven for thinking they have a better chance of seeing a UFO or Bigfoot than receiving a Social Security check. The reason isn’t difficult to discern. So-called “entitlement reformers” have released a steady flow of disinformation aimed at convincing younger generations that the program is “unfair” to them and “going bankrupt.”
The truth is that Social Security is as much a millennials’ program as anyone else’s. Current trends indicate that millennials will rely on Social Security retirement benefits significantly more than their parents’ or grandparents’ generations. The average Social Security retirement benefit in Virginia today is about $17,000 per year — slightly above the poverty line. But according to a recent Urban Institute study, the average millennial will receive $1,000,000 in lifetime Social Security retirement benefits.
The data shows that millennial retirees — who could reach 2 million in number in Virginia by 2050 — will need that income. The National Institute on Retirement Security reports that twothirds of this age group haven’t saved any money for retirement. What’s more, millennials will live longer on average than today’s retirees, meaning they’ll have to spread out their financial resources over a greater number of years.
Social Security also provides disability, spousal and survivor’s benefits to workers of all age groups. The average worker with a spouse and two children would have to purchase more than $600,000 in life and disability insurance to replace the protections Social Security provides. In fact, some 1.2 million millennials already receive Social Security benefits.
Contrary to conservatives’ claims, the program is not facing bankruptcy or insolvency. Without congressional action, the Social Security trust fund will become exhausted in 2035, after which the program still could pay 80 percent of benefits. No
doubt, our elected representatives must act to keep the program financially healthy. But Americans of all ages should reject conservative proposals to cut benefits or privatize Social Security — and embrace solutions that will both strengthen and expand it.
Rep. John Larson (D-CT) and Democratic presidential candidate Sen. Bernie Sanders (I-VT) have introduced legislation that would put Social Security on a solid financial footing for the future. Both bills would adjust the Social Security payroll wage cap (currently set at $132,900) so that the wealthy would begin paying their fair share into the program. Larson’s bill provides a modest, but much-needed boost in benefits. It also has the potential to reduce the senior poverty rate in states like Virginia, which now hovers around 7 percent.
His Social Security 2100 Act also includes a 1.2 percent increase in employee payroll contributions spread out over 24 years. The average worker would contribute an extra 50 cents per week toward future Social Security benefits — the equivalent of one Starbucks coffee drink every two months. That’s a pretty good deal in exchange for the peace of mind of knowing Social Security will remain fully solvent through the end of the century, with more generous benefits and cost-ofliving adjustments. If you’re an average income earner, you will surely need both to pay your bills in old age.
Millennials, here’s a chance to harness the power of your generation to exert influence on the future course of Social Security. Instead of accepting the false narrative that Social Security is doomed, join your parents and grandparents in protecting Social Security as if your future financial well-being depends on it — because it does.
Max Richtman is president and CEO of the nonprofit National Committee to Preserve Social Security and Medicare. He has a home in Woodville.