In the last post, we talked about the benefits 20-somethings receive from Social Security. Many young adults worry that they will not see any benefits from the 4.2 percent of their paychecks that is withheld for Social Security. To address those concerns, the Social Security Administration hosted a webinar to help people under 30 understand the services Social Security provides to the younger generations.
Our last post discussed disability insurance and survivor’s insurance. Both programs provide financial assistance to individuals and their families who suffer from unexpected health problems. This post discusses some of the additional benefits of Social Security for individuals in Ohio, as well as the SSA’s projections for the future of the program.
In addition to paying for our own retirements, the Social Security payments we make are also used to support our parents and grandparents. Retiring citizens who receive Social Security checks are less likely to rely on their children or grandchildren for additional financial support.
One of the biggest benefits of Social Security is the retirement payout. The retirement payout is based on the monthly average of your highest 35 years in the workforce, and it continues for the rest of your life. Most young adults will likely spend about 20 years in retirement, and Social Security checks can help ensure they will have a constant stream of income the whole time.
When the 20-somethings asked about the future of the program, one SSA spokesperson said, “There will still be millions and millions and millions of people working and paying payroll taxes… Social Security will not be broke.” Rather than speculating about the future of the program, Generation Y can be grateful for the benefits Social Security currently provides.
Source: US News, “How Generation Y Benefits From Social Security,” Emily Brandon, 11 March 2011