Worried about retirement? You bet young entrepreneurs are. With Social Security scheduled to go bust in the midst of the baby boomers' retirement years, young adults are planning to go gray without help from government cushions.
In addition to starting their own nest eggs, many twentysomething entrepreneurs want the government to encourage savings through expansion of investment vehicles like a Roth IRA or 401(k). Many also argue for privatizing Social Security and creating personal retirement accounts.
Deroy Murdock, founder of media and marketing consulting firm Loud & Clear Communications in New York City, is an ardent supporter of privatization. "Between 1926 and 1996, the stock market offered 7.6 percent in real average annual returns-nearly 10 times better than what Social Security pays," says Murdock, 35. "Add to that the fact that personal retirement accounts can't be taken away or reduced by politicians."
According to Richard Thau, president of political advocacy group Third Millennium, most young people favor the creation of personal retirement plans. "Young adults are fed up with Washington mismanaging their money. They know they can do it better," says Thau, whose organization seeks to represent young adults' economic interests in Washington. One survey Third Millennium conducted showed that more young adults believe in UFOs than believe they'll ever see a dollar of Social Security.