Millennials’ Retirement Savings Outlook Differs from Older Generations: Less Reliance on Social Security

Millennials are taking a proactive approach to retirement savings, with only 6% of those with 401(k) plans expecting Social Security to be their primary income source in retirement. This is in stark contrast to older generations, with 30% of Gen Xers who participate in a 401(k) planning to rely on Social Security for their main income in retirement.

Experts are noting a shift in mindset among younger workers, who are realizing the need to save more for retirement and may not be able to rely as heavily on Social Security as previous generations. With the program facing a funding shortfall that could impact benefits as early as 2034 in the form of a 20-25% cut to monthly payments, millennials are taking matters into their own hands.

Financial advisors are encouraging millennials to save more for retirement by working longer, reducing spending, and taking advantage of retirement accounts like 401(k)s and Roth IRAs. By being proactive and planning ahead, millennials are setting themselves up for a more secure financial future in retirement.

What do you think?  Is it possible to save enough to eliminate the need for Social Security benefits in retirement?