Can Millennials Deliver on Social Security Promises Made in 1965?

"We are on the brink of inter-generational strife. We have the political shortsightedness of decades past to thank for that."

                                        - John Phelan, economist at Center of the American Experiment

A lot has been said about the differences between the boomer generation and millennials. Whether it is systemic changes in the economic landscape or work ethic and cultural preferences – or some combination of both – there are definite differences that challenge the underlying assumptions of today’s retirement structure.  

Social security was always an elaborate, mandated Ponzi scheme – relying on the inputs of many workers to support a few retirees at a time. At first, 100 workers supported 3 retirees. Because of falling birth rates and longer life expectancy over the years, today 100 workers support about 25 workers and it is only going up.  

Pension funds are in even bigger trouble.

Millennials are the most educated yet least employed generation. They are delaying family, job hopping, and living with parents more than previous generations and yet, we are relying on them to do the opposite of these things to maintain the financials of retirement systems.

They are also saddled with crippling amounts of debt that prevent them from saving for their own retirements.

Your retirement security may not be tied up in promises made in 1965 that millennials are supposed to keep, nonetheless, many people’s are, and the dynamic this is creating economically is going to be very destabilizing. It will almost inevitably result in higher taxes – meaning you will have less in your paycheck to invest in YOUR savings. It could devalue the dollar if it results in more money printing.

All the more reasons you need precious metals as an anchor to your retirement plans. Don’t rely 100% on the dollar when there are so many factors working against it in the future. Have something solid in your portfolio.

There are many uncertainties ahead in the next decade and the need for gold is ever more acute.  Call Lear Capital and discuss your precious metals strategies today.