Is Social Security a Pipe Dream for Millennials? Yes, Says Mr. Retirement

Americans dream about retirement. But, the days of having Social Security fund it is quickly fading. Retirement Daily's Robert Powell helps you prepare for retirement without relying on that government nest egg. Watch TheStreet's new video series 'Ask Bob' for more.
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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.