Social Security Won’t Give You Security | 5 Minute Video
If you’re counting on Social Security to finance your retirement, you’re in for a big surprise. Money expert Chris Hogan explains why.
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Script:
If you’re counting on Social Security to finance your retirement, you’re in for a big surprise—and not the good kind.
Let me give you two reasons why.
One: Social Security is going broke.
And, two: Even if it weren’t going broke, it couldn’t possibly cover the cost of a decent retirement.
Let’s look at these two reasons in a little more detail, and then I’ll propose a solution.
Social Security is going broke.
When this government program was set up in 1935, the average life expectancy was 60. But you couldn’t collect your first check until you reached 65. In other words, most people didn’t live long enough to receive Social Security. And most of those who did, didn’t collect it for very long. Today, the average lifespan is 79. So now, most people do live long enough to receive Social Security—for 10, or 20, or even 30 years.
Here’s another important piece of information: When the program started, the ratio between worker and retiree was 159 to 1. That means for every one person drawing benefits, 159 were paying in. Today the ratio is 2.8 to 1. Get that? We’ve gone from 159 workers supporting every retired person to fewer than three workers supporting every retiree. And it’s going down.
You don’t need an advanced math degree to figure this one out: Social Security is spending more than it’s bringing in. Far more. Its own Board of Trustees has said that it will be bankrupt within twenty years.
That doesn’t mean it won’t exist. It means that either the government will pay you less than it promised, or it will have to raise taxes to make up the shortfall. Most likely, both.
Sounds about right for an entitlement program, doesn’t it? Starts out small, but just keeps growing and growing until it collapses under its own weight.
But let’s indulge in a fantasy and say that Social Security is perfectly designed, perfectly balanced, and efficiently run. And that you would get every dollar you were promised.
You’d still have a major problem if that’s all that you’re relying on.
To illustrate, in 2017 the average monthly Social Security check was a little over $1,400. That’s under $17,000 a year—barely above the poverty line for a two-person household. Do you really want to live at the poverty line in retirement? Why in the world would you plan for that?
But sadly, many people are. According to a recent study, 53 percent of un-retired baby boomers have no retirement savings. That means they’re planning to rely on Social Security for their retirement income.
That’s them.
Don’t let it be you.
For the complete script, visit https://www.prageru.com/videos/social-security-wont-give-you-security
source
This guy could sell a flashlight 🔦 to the sun ☀️ lmao
That $1Million when you’re seventy will be worth so much less though because of inflation.
Probably won’t even be the value of a house.
Reason why I hate government. They easily could of made updates to social security to make sure it worked for future generations.
A lvt would fix this.
Wise words indeed and something that needs to be taught to children. Also, what a voice! He should be narrating everything!
I’ll be working til the day I die.
I have relied on Social Security disability for 16 years so far no hiccups
This doesn't delve on the political thievery that greatly helped cause this mess nor the easier ways to help fix this.
#1. Stop the gov from stealing from it. LBJ started taking funds from it to fund Vietnam. It's never stopped.
2. Why stop taking ss from checks at 96k? It's insane that those who can pay, don't. It's rigged.
3. Anyone with a designated net worth over xx number of dollars should be phased out or reduced based on how much their net worth or retirement income is. No reason billionaires or multimillionaire should collect the full amount they don't even need in the least.
We are all being played here. Don't let them guilt you, it's them, not you.
Btw, I did the math using a python script, and in the video he didn't account for inflation or how the 500$ from when you were 30 would be able to buy much more than the 500$ when you were 70 (basically backwards inflation.) (assuming a constant 5 percent annual interest rate,) after 40 years, and subtracting the 20,000$ you put in over time, you would have only made a little more than 150,00 dollars in profit. I used the mat module, and if someone wants the source code, (it is a pretty simple eqation though) (if they think I made a mistake in the code) ask in replies and I'll give it to you 🙂
This is a case of only telling a small part of the story. Yes, what he is saying is accurate, to a limited extent. Yes, Social Security IS going broke. However it isn't because of the people receiving benefits from it. It is because Congress SQUANDERED the money YOU and your employer put into it. Yeah, your employer matched dollar for dollar everything you paid into Social Security. Yup, and Congress squandered every penny of it!
When this speaker called Social Security an entitlement he LIED! Well, partially anyway. Welfare is a good example of an entitlement. The recipients of Welfare never paid a dime towards their benefits. This is not true for Social Security. YOU paid into it. Your parents paid into it. Like your grand and great Grandparents paid into it as well. In fact, the system used to be voluntary. There was no requirement for anyone to join the system till the mid seventies. After that it was required and people were forced to get the number. But that's a rabbit trail I'm not going to follow. The point I am getting to here is that Social Security Recipients are drawing money out of the system they themselves put into it. It isn't the fault of Social Security recipients that they have been defrauded by the U.S. Government for seventy-five years! That they have been robbed by Congress since the inception of the system.
How can we solve the debt/spending as it is related to social security?
Social Security benefits only replace some of your earnings when you retire, develop a qualifying disability, or die. We base your benefit payment on how much you earned during your working career. Higher lifetime earnings result in higher benefits. If there were some years when you didn’t work, or had low earnings, your benefit amount may be lower than if you worked steadily
It was always a ponzi scheme: the original age of 65 was selected knowing roughly half would never collect a dime. And… its not willable.
And still you haven't considered the impact of inflation. In countries with high inflation rate, people have to save their money in forms that preserve the value of their properties. Like investing on gold, foreign currencies, real estate and crypto currency or stocks (if possible).
If people paid off their debts Banks and credit card companies would go out of business.
Some good advice there unfortunately I didn't take it and now live as an expat outside of the USA. My social security lets me live a middle-class lifestyle rather than living in poverty. When I was in the car business the company I worked with was part of a retirement plan with the National automotive dealers association. When the car business got bad a lot of my friends lost 50 to 100,000 dollars. The original owner of the dealership was one of those returning vets for world war II the great generation. It wasn't original but as he always said " If you fail to plan you plan to fail"
I can’t wait to retire so I can move to a country where my money will go far
And get a good retirement plan like the one that was provided for me from the national Auto dealers association that went bankrupt when there was a downturn in the automobile sales and wiped out a lot of money for a lot of friends of mine luckily I was stupid and used it as a vacation fund and went out and had a good time. We could also raise the retirement age to 75 I'm sure that's exactly what all industry wants these days is to have a bunch of senior citizens in their office. Wants to hire the young and inexperienced who will work for about half the price a senior would. We can also raise the cap on the eligible income.
The financial term is roll over .
Anyway the money that was borrowed by other government agencies needs to be paid back in full, then raise the age requirements taxes that is fair and equal for both the poor and wealthy. Then once solvent again lower the taxes and age requirements back down again were it's sustainable.
At this time this is supposed to be the most trustworthy intelligent people to inhabitant the world yet there's no evidence of this.
Wow, a decent unbiased non-political propaganda video from PragerU? I don’t believe it.
Stop calling it entitlement. ITs a DEBT thatt must be paid back to the people who put into it for 30 plus years. So Uncle Sam, Just give me my money back. And get out of my life. I dont need you.
privatize it .
I hope things have worked out for Chris Hogan!!
The biggest mistake some people make is not taking advantage of their employers 401k. I personally know several people who are offered a 401k with matching contribution through their employers and they do not participate. One person I know says she is a single mom and can't afford to contribute. That is the dumbest decision one could ever make. I also knew a person who worked at a factory that matched up to 6% in their 401k and he didn't participate. If he contributed 6% plus matching 6% over 30-40 years that would add up to several hundred thousand dollars in the market. Only a fool would pass up a deal like that. My wife and I have $650,000 in 401k and growing because we took advantage of our 401k's.
The 159:1 ratio is misleading. That was true when the very first SS recipient drew her first check, so the statistic is skewed. But the declining ratio point is well taken.
4:19 That implies that they charge no fee for the whole period.
When I’m that age I’ll be too old to enjoy the money anyway!!!
If you send a "check" now, for all that we put into the program, we won't feel cheated
Dave Ramsey has great financial strategy like that, very sound one I've been applying.
Who has $500 to invest? Social security is a pension for the elderly funded by the young and I like that.
Social Security isn't social and isn't secure and also it's the best way to go bankrupt and poor. Stay far away from it. It only benefits politicians, and only in the short to mid term. It's just scam. I'm from Spain, I can tell. We're almost permanently bankrupt because things like these… Thank you.
That'swhy abolish all government programs including Social ones and have only state (and local) law, state (and local) police and state (and local) military. Or only have local governments with your own laws without a Central government in the state.
Too many boomers.