Poll shows young voters skeptical of Social Security

Young Americans would rather entrust their money to the Tooth Fairy than the federal government.

In a recent poll, 66 percent of voters ages 18 to 29 said they believed their Social Security money is safer “under their pillow” than with the federal government. The poll, which was conducted by the nonprofit, nonpartisan Generation Opportunity organization dedicated to educating and engaging young Americans, also indicated that 66 percent are “deeply concerned” about U.S. financial debt, and 76 percent believe government spending ought to be reduced.

“A lot of people in the younger generation realize Social Security is a pay-as-you-go system, and there aren’t actually any resources set aside for paying those bills in the future,” said Connel Fullenkamp, director of undergraduate studies and professor of economics.

The two major factors contributing to Social Security instability are increases in obligations relative to contribution and gradually declining labor force participation rates among the working-age population, Charles Becker, associate chair and research professor in the economics department, wrote in an email Tuesday.

Becker described Social Security as a Ponzi scheme, but said the system will continue to exist as long as there are contributors.

“Young people have swallowed the myth that Social Security would not be around for them for a long time,” Becker said. “At least in the U.S. context, this fear is unfounded.”

Fullenkamp raised concerns about the sustainability of Social Security benefits for future generations. Although there were once three members of the workforce for every retired American, the number is now shrinking to fewer than two workers per retiree, he said.

“One of the big problems we’ve had with the current generation is that they think Social Security is this magical generous thing that’s going to fund their retirement,” he said. “Social Security is really completely inadequate to fund what anybody would consider a normal retirement.”

Others, like freshman Michael Kaelin—though anxious about the economy—find some humor in the Social Security talks and the current credibility of the federal government.

“Trusting the government to take care of my Social Security money would be like having Michael Jackson baby-sit my kids,” he said.

Students who are closer to entering the professional world, like senior John Mekjian, are taking the issue more seriously.

“I don’t know how secure my job is going to be, so I’m going to work really hard, but I’m also going to save a lot,” he said.

Fullenkamp noted that students ought to begin saving immediately after entering the workforce and utilizing tax advantage programs that could benefit from their bank accounts early on. Although the current state of the economy has Americans worried about the security of their money, he does not view keeping money under the pillow as a viable saving strategy.

“Your own money is also a dangerous thing,” he said. “Not only is there the chance to lose it, but idle cash is the devil’s workshop, and people end up looking at cash as just another resource they can use to take a vacation or do any number of things where they lose the money.”