A101 Team According to a recent study, around half of baby boomers have no retirement plans other than Social Security. That’s a problem.
Money expert Chris Hogan explains why:
Social Security is going broke. When this government program was set up in 1935, the average life expectancy was 60. But you couldn’t collect your first check until you reached 65. In other words, most people didn’t live long enough to receive Social Security. And most of those who did, didn’t collect it for very long.
Today, the average lifespan is 79. So now most people do live long enough to receive social sec for 10, or 20 , or even 30 years.
Here’s another important piece of information: When the program started, the ratio between worker and retiree was 159:1. That means for every one person drawing benefits, 159 were paying in.
Today, the ratio is 2.8 to 1.
