More on the Social Security “Bankruptcy Myth”
Yes. Social Security is in trouble. But no, contrary to what 78% of the respondents to the 2017 Nationwide Retirement Institute survey believe, it will not go bankrupt. Current projections are that the Social Security Trust Fund will, in less than four years, begin to be used to make up the difference between inflow and outflow, and that this Trust Fund balance will hit zero by 2034. But that still does not lead to bankruptcy. What it does mean, though, is not pretty…outflow will be required to meet inflow, with the result that benefits will be reduced by about 23% across the board.
That’s if nothing is done to circumvent the problem. There are several proposals on the Congressional table right now, including the Association of Mature American Citizens‘ “Social Security Guarantee Act of 2017.” But action must be taken on these measures in order to resolve the long-term dilemma.
The Motley Fool’s Selena Maranjian, in a post on host.madison.com, provides additional background on the state of Social Security. Read her post here…