Why pessimism on Social Security could come back to bite millennials

Mark Miller:

“If you add up all these factors, you have a constellation of things that will make it very difficult for young people down the road,” he said. “That’s why Social Security is crucially important for both this generation and younger people. Joining forces between older folks in the boomer generation and the millennial generation offers a tremendous strategic opportunity to bolster the long-term stability of Social Security.”

Politicians routinely claim that Social Security is going bankrupt and that its shortfalls drive the national deficit – neither is true. I often hear so-called experts from the financial services industry advise people to count on receiving only part of their future benefits. Good luck with that – just try running the numbers with only half of your projected Social Security benefits, and you will watch your plan collapse right there on your computer screen.

Much of the media coverage of the annual report of the Social Security trustees also is atrocious. Just this past April, the report’s release set off the predictable wave of erroneous headlines and broadcast reports stating that Social Security is “running out of money,” describing its “depleted funds” and advising people on how to prepare for a future retirement without their expected benefits.