Social Security isn’t going away
Despite what you may hear from media pundits who like to dramatize, the Social Security program isn’t going away. Yes, the program does have financial issues which could impact benefits in the future and which need the attention of Congress, but Social Security will be paying benefits as long as there are Americans working. The problem arises because starting this year benefits paid out will be more than incoming revenue, meaning that Trust Fund reserves will be used to make up the difference. There’s enough money in the Trust Funds now to carry us until 2034 when the reserves will be depleted and benefits cut by about 21% – 25%, but this is a worst case scenario. There’s no doubt that Congress needs to take action to find ways to cut costs, increase revenue, or a mixture of both. But, according to this article appearing at Virginia’s WTKR News 3, the biggest risk to younger workers – today’s so-called millennial’s – is not from Social Security going away but rather that they don’t save enough and earn enough on their investments to offset any potential cuts in Social Security benefits. Click here to read more.