I received this from an Investment Firm detailing the realities of the world we live in. I assumed that social security was a retirement benefit, (albeit a small one). If it was never intended to be that, then it was a tax.

Retirement Outlook for the 20-Somethings

In the 1930’s Franklin D. Roosevelt set up Social Security as part of the New Deal.  Most people are unaware that age 65 was picked as the retirement age because life expectancy in the 1930s was just under 60. In other words, most people would be dead before they were eligible for benefits. As a result, Social Security would not cost much to fund.

Then Social Security morphed from Social Security to Social Retirement. How did this happen? The answer is simple: someone forgot to increase the eligibility age.   As life expectancy increased, the eligibility age should have increased too. Applying the 1930 rules, the true retirement age today is shockingly age 89.

Here are the stats from the governments own tables:  

Year	Number of Recipients	Dollars Spent
1937	52,236	$1,278,000
1940	222,448	$13,896,000
1950	3,477,243	$961,000,000
1960	14,844,589	$11,245,000,000
1970	26,228,626	$31,863,000,000
1980	35,584,955	$120,511,000,000
1990	39,862,125	$247,796,000,000
2000	45,414,794	$407,644,000,000
2008	50,898,244	$615,344,000,000

In the 1930s, giving money to a handful of older survivors was a great idea; today, it is most likely going to break us, unless something is done.

The remedy is quite simple: gradually increase the retirement age to where it truly belongs -in the late 80s.  

The older generations had little reason to doubt the strength of Social Security. They graduated from college with little or no debt, joined a company with a great pension plan, and saved for a rainy day.

For the 20-Somethings it is different. Most likely, this will be your reality:

• You are probably on your own!   Nobody is going to take care of you! Retirement is your problem, not somebody else’s!
• Social security will probably always be around, in some form, but you will need to be older to get it.
• Employer funded pensions might be a thing of the past.
• Here is what you might want to do:
• Get into a good and rewarding profession that pays well.
• Practice frugality – you don’t need all that stuff.
• Save! It is fun to have money – it’s tough to be broke.
• Take full advantage of the many tax deferred ways to save: IRAs, Roth IRAs, 401ks, Annuities, Cash Value Life Insurance, etc.
• Don’t try to get rich quickly. “Hail Mary” passes usually fall short. People get rich slowly. Small investments over long periods of time make all the difference.
• Remember: money has to do with freedom – without it you are in bondage