[redgolum]

I can understand your frustration. All your life you have been told that the money you paid into SS was going to be paid back to you. But in reality, it is gone.

The government blew it on who knows what a long time ago. There is and has never been any SS "lock box". In effect, your generation was lied to.

But what worries and angers some in the later generations is that when the Baby Boomers retire, there will only be 1-2 people paying into SS for each person taking out of it. So either SS goes under, or tax rates increase astronomically. No matter what happens, many in my generation have figured out we will not be able retire. At best we can expect to work till we die or have one of our kids take us in when we are unable to work. But the safety net promised by so many politicians is going to be gone, and I have a bad feeling of what will happen to the stock market once millions of people begin to cash out their 401(k)s.

[Myrddin]

But the safety net promised by so many politicians is going to be gone, and I have a bad feeling of what will happen to the stock market once millions of people begin to cash out their 401(k)s.

That behavior is mandated by the ERISA law. The draw down will start around 2016. ERISA was crafted when companies realized that unbounded responsibility for defined benefit pensions could not be sustained with extended lifetimes that draw retirement for periods that may exceed the number of years actually worked. Workers that have participated in ERISA based defined contribution programs have been driving up the stock market for the last 25 years. There is about 10 more years before the "bill" comes due. You need to find an alternative strategy to the stock market before 2015.

[Marie]

But what worries and angers some in the later generations is that when the Baby Boomers retire, there will only be 1-2 people paying into SS for each person taking out of it. So either SS goes under, or tax rates increase astronomically. No matter what happens, many in my generation have figured out we will not be able retire. At best we can expect to work till we die or have one of our kids take us in when we are unable to work. But the safety net promised by so many politicians is going to be gone, and I have a bad feeling of what will happen to the stock market once millions of people begin to cash out their 401(k)s.

Well said.