How Social Security Benefits Are Unintentionally Affected by One Common Millennial Lifestyle Choice – Community News
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How Social Security Benefits Are Unintentionally Affected by One Common Millennial Lifestyle Choice

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The birth rate in the US has fallen in recent years – particularly among millennials – leaving many to question whether this will have broader implications for Social Security benefits.

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The estimated replacement fertility rate is 2.1 live births per woman; however, the birth rate fell to 1.64 in 2020, as previously reported by GOBankingRates, making it the lowest birth rate since 1979. Analysts at the Brookings Institution predict that the birth rate will remain below the replacement rate in the long run.

Parents not only get them at a later age, but also have fewer children. The age of motherhood has been rising in the US and other countries in recent decades. In the US, the median age for women is around 30 years old.

A Pew Research Center survey found that a growing number of childless American adults say they are unlikely to ever have children. About 44% of non-parents ages 18 to 49 say they are unlikely to have children, up from 37% who said the same in a 2018 survey.

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The Social Security Administration pays a lot of attention to birth rates. The Social Security program is largely a pay-as-you-go system. Today’s workers pay for the benefits of today’s retirees. A lower birth rate means fewer workers will contribute to the program in the coming years.

“If there are fewer workers in the future, that could certainly affect the amount of money going into the social security system, which would also affect benefits,” Anqi Chen, assistant director of savings research at the Center for Social Security, told The Daily Mail. Retirement Research, at CNBC.

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About the author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but now lives in Ohio, where she attended Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.