Q & A
Ask Rusty – What Happens if Social Security Runs Out of Money to Pay Benefits? - AMAC Foundation
Dear Rusty: What happens to seniors if the country runs out of funds to pay out monthly Social Security to beneficiaries? I am 78 yrs old and Social Security is my only income. Signed: Worried Senior
Dear Worried Senior: Please put your mind at ease - the government will never run out of money to pay Social Security benefits. That’s because if people are working and contributing to the program (e.g., always), Social Security will always have at least some money to pay benefits. What you are hearing about are recent media reports about Social Security having financial issues, expected to come to a head in just a few (six) years.
The primary risk for you (and everyone else) is this: if the reserves in the Social Security Trust Fund (currently about $2.5 trillion) run dry, it would result in a reduction to everyone’s monthly benefits. Right now, the Social Security Trustees are projecting a cut of about 22% starting in the fall of 2032. But that will only happen if Congress fails to act and reform the SS program before the SS reserves are fully depleted. And that is, in our opinion, not likely to happen unless Congress is completely and totally derelict in its obligations to American seniors and their dependents. Not a pleasant scenario, but neither is it one likely to occur.
Here at the AMAC Foundation, we are working vigorously to prevent the depletion of the Social Security Trust Fund, and our expectation is that Congress will, indeed, eventually take action to prevent any cuts to monthly benefits. It would be political suicide for Congress (and any President) to allow those Social Security benefit cuts to occur. That would greatly increase the poverty level in America. As we have often reported publicly, we have already proposed a commonsense plan to restore Social Security to long-term solvency and are working in Congress and with the Social Security Administration to promote the needed reform. You can see more details of AMAC’s plan here: https://amac.us/social-security-guarantee
So, while we fully understand your personal anxiety, we feel confident in assuring you that you are very unlikely to experience any cuts to your monthly Social Security income. We are firmly committed to preventing that from happening and will continue to vigorously lobby Congress to make the SS changes needed before the SS Trust Fund is fully depleted.
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