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America’s youth faces an enormous economic disadvantage upon retirement due to the increasing depletion of Social Security. The leading factor causing this depletion is the increasing number of Baby Boomers going into retirement and withdrawing their Social Security funds. This means that more money is being withdrawn from Social Security than what is being deposited. When this is combined with the near-extinction of pensions, American youths face an uncertain economic future upon retirement. Mandatory savings accounts should and will force employed Americans to deposit some of their income each paycheck in order to secure their economic well-being upon retirement.
Every American employer should be required under national law to offer at least one retirement program to his or her full-time and regular employees. Such programs should not be offered to seasonal employees because they do not earn enough money to drastically impact their retirement via savings accounts. In addition, full-time and regular employees should be required to participate in their employer’s retirement program at the risk of losing their jobs upon refusal.
The majority of American citizens are not aware of the impending economic crisis they face or the vast benefits of saving for retirement. With proper education, they will be more likely to cooperate with employers and save their money via savings accounts. The public school curriculum in America should incorporate personal finance as a required course for graduation. In regards to the American citizens who are between graduation and retirement, employers should be obligated to educate their employees about personal finance and the benefits of saving.
After implementing these measures, there will be less need for Social Security. Therefore, the current Social Security crisis would be far less critical. Through the elimination of Social Security and the introduction of mandatory retirement savings, employees will never have to worry about economic crises such as the current dilemma with Baby Boomers and Social Security. The American government will still indirectly control the retirement of citizens through its enforcement of laws that will require employers and employees to focus on retirement.