Top 3 unfair policies
The most unfair economic policy according to Galloway is Social Security. “Every year we transfer one and a half trillion dollars — the greatest economic transfer in history happens every year from young people to the wealthiest generation in history senior citizens and it's called Social Security,” he told Roll.
According to the Social Security Administration, 69 million Americans are on course to receive Social Security benefits in 2025. Total benefits for the year are estimated at roughly $1.6 trillion. However, it should be noted that beneficiaries have also spent entire careers spread across decades paying into the program before they retired.
For those still working and paying into the program, its sustainability is deeply concerning. 73% of non-retired adults said they won’t receive enough benefits if the Social Security fund is depleted by 2033 as projected by the SSA, according to a Bankrate survey.
Despite these concerns, the program remains popular as 87% of Americans said the government should resolve the Social Security funding issue regardless of the impact on the national deficit, according to the National Institute on Retirement Security.
Besides Social Security, Galloway believes tax policies that favor assets over earned income are unfair. And, he says, this includes the mortgage tax deduction and capital gains taxes.
“Who makes their money selling stocks and selling assets? Guys my age,” says the 60-year-old. “Who makes their money with sweat? The guys in this room, the younger guys. Who owns homes? Older people. Who rents? Younger people.”
A 2024 study from Redfin confirmed that empty-nest baby boomers owned 28% of the large homes across the country, while millennials with kids owned just 14%. Meanwhile, the share of U.S. equities owned by those over the age of 55 has surged to 80%, according to Rosenberg Research & Associates.
Changes to economic policies could address some of this disparity, but in the interim there are several ways younger Americans can plug the gap independently.
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Learn MoreClosing the gap
So what’s a millennial to do? Accumulating assets could be the best way to beat the generational divide. For those who have the luxury of seeking parental support, that’s one way to get a foot on the property ladder. (And allow you to enjoy mortgage tax deductions.)
Zillow’s chief economist Skylar Olsen told CNBC that roughly 40% of first-time homebuyers sourced some of their purchase funds from “the bank of mom and dad.”
You could also consider boosting your savings rate and focusing on tax-sheltered accounts such as the 401(k). The median 401(k) balance for someone in their 20s is just $34,225, according to Empower. If you can save more than your peers, leverage employer matching plans if you can, and invest in stocks, you could improve your chances of enjoying some of the same tax benefits seniors do.
“I do think we have to put more money into the pockets of young people who have seen a transfer of wealth,” Galloway says.
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