"FUD was on full display in a recent FIRE Reddit post . The original poster mentioned that a financial advisor came into the office and said that anyone who is under 35 is in a grey area. The advisor claimed that Social Security won't be around as we know it. The Redditor proceeded to question if it's still worth it to contribute to a 401(k) plan after hearing that Social Security may be gone by the time young people reach retirement age."
"The financial advisor's concern for Social Security is warranted. Fertility rates have remained below replacement level ever since the Great Recession, and for some countries, the trend has been taking place for decades. It's a fancy way of saying that people aren't having enough children to replace retirees who leave the workforce. Fertility rates have continued to decline, resulting in a small number of young workers having to financially support a growing class of retirees ."
Fear, uncertainty, and doubt around money and investing can lead to poor decisions. A financial advisor's claim that Social Security may not exist for those under 35 prompted questions about continuing 401(k) contributions. Fertility rates have fallen below replacement levels since the Great Recession, reducing the number of young workers available to support retirees and placing financial pressure on Social Security. The government is unlikely to eliminate Social Security, but maintaining it could increase inflation and reduce future purchasing power for young workers. Retirement investing decisions should focus on long-term saving, contributing to 401(k)s, and accumulating other assets, including brokerage accounts for extra savings.
Read at 24/7 Wall St.
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