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- [Bob Powell] Those who save may end up paying for those who didn't later in life and that's why everyone has to, you know, we're not going to have defined benefit plans to bail you out, you may not have Social Security. It's going to be up to you.

- [Tony Owusu] There's a risk that Social Security might not be around by the time we're ready to retire. Do you factor that in and how do you save?

- [Bob Powell] Yeah, it's a good question and it's a big worry. My children say to me you know, 'Let me get this straight. I'm working so that when you retire you're going to get Social Security but when I retire, there won't be enough people to give me money?' I'm like 'Yeah, that's how that system works.'

- It sounds like a Ponzi scheme.

- Yeah, well, yeah a little bit. I mean some of the things that happened, when Social Security was first started we had 10 workers for every one retiree, right? So the system was designed to be solvent back then.

- [Kevin Curran ] And the life expectancy was--

- And life expectancy was a little bit lower. Today we're in an environment where there are only two workers for every one retiree and that number's falling, the fertility rate in the United States is falling, we're not allowing immigrants into this country, so now we have this world where it's going to become insolvent where in the next 10, 12 years, we'll be paying out more than we collect and it will be on the order of 80 cents on the dollar of expected benefits. So for me, I have to plan for that. For you in your 20's I would plan on it not even being there, right? I would plan on you having to fund all of your retirement through your savings and your 401K. I'm sorry, but I didn't design the system.

- You're not really at fault.

- I'm not at fault but I'm here to tell you don't depend on it and don't factor it into your retirement.

- I blame FDR.

- Yeah, well FDR, I don't blame FDR, I blame the current political state. Because in the 1980s, the Greenspan Commission went and solved some of the problems that existed back then and here we are however many years later and no one has the courage to tackle Social Security. No one wants someone to say "I'm going to reduce your benefits" or "I'm going to raise your taxes".

- It's a sure way to not get re-elected.

- Right, right.

- Because you can't put the toothpaste back in the tube once you give people benefits.

- Yeah that's right, toast can't become bread.

- [Kevin Curran] Exactly.

- So the problem is someone has to have the courage before it becomes too late to tackle this issue and I give credit to, actually it was Reagan who was in office back in the 80s when they created the Greenspan Commission and they said "We're going to raise the full retirement age." But it happened over the course of decades. It was a slow motion solution that worked for as long as it did. But now we need another slow motion solution and we need some courage in Washington to do it.

Retirement - Yeah!

Americans love to dream about how they will spend their golden years!  Maybe it will be on a beach, on a mountain top or in some remote location. Ah, yes. we love to imagine how we will live our best years. But, that daydreaming quickly turns into a nightmare when the subject shifts to just how you'll fund your retirement yet. Or, better yet, if Social Security will be just a fading idea. 

The reality is, no one know how long Social Security will be around.  And for millennials that means imagining your retirement without this government funded parachute! That, of course, is easier said than done.

Social Security History

When Social Security was first started there was 10 workers for every one retiree, the system was designed to be solvent back then, and life expectancy was a little bit lower. Today, we're in an environment where there are only two workers for every one retiree and that number's falling. The fertility rate in the United States is falling, and we're not allowing immigrants into this country. Now we have this world where it's going to become insolvent, where in the next 10 to 12 years, we'll be paying out more than we collect and it will be on the order of 80 cents on the dollar of expected benefits.

Retirement Daily's Robert Powell says if your in your 20's, then you should plan on Social Security not even being there. He says 'Plan on having to fund all of your retirement through your savings and your 401K".

For more advice, check out our new video series "Ask Bob' above, bookmark Retirement Daily's Playlist or sign up for Retirement Daily and be sure to follow Bob Powell, on Twitter @RJPIII.