Open Access
Candito, David Frank
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Samuel Burton Bonsall IV, Thesis Supervisor
  • Orie Edwin Barron, Honors Advisor
  • Social Security
  • Millennials
  • Retirement Options
If you asked millennials what is one of the biggest concerns they have upon graduation, I would bet not many of them would say Social Security shortfall. There are several reasons for this phenomenon. The first and most obvious reason is that millennials do not know what the issue is, or that there even is an issue. We need to start asking how should millennials save for retirement and make up the difference when the benefits from Social Security are cut back in 20 years? Social Security is a program that so many in our country utilize and rely on that eventually will not be here one day if we do not plan accordingly. The Social Security shortfall is the potential inability of the system to sustain itself because the number of people receiving benefits is soon going to exceed the number of people paying into Social Security. It is ultimately up to millennials to provide a solution to the shortfall or find alternatives to their retirement savings plans. For many millennials saving for retirement is not something they are thinking about upon their college graduation; however, they should be. Too many college graduates start saving too late because they don’t know the difference between an IRA and the IRS. This paper discusses many types of retirement plans including 401Ks, IRAs, ROTH IRAs and more. It will also demonstrate how to properly invest the money you have within these plans through an asset allocation model to ensure you are getting the highest return on your investment for the appropriate amount of risk. This will demonstrate how investing early and in a diversified way can not only cover the difference in your retirement nest egg and Social Security benefits but well exceed them. Following the reading of this paper all millennials should have a better understanding, or at least a basic knowledge of what their financial future looks like.