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Will Social Security Go Bankrupt? - Motley Fool
Well, the short answer is no – Social Security cannot go bankrupt and not be able to pay benefits as long as there are American’s working and contributing to the program. However, that doesn’t mean that the program is on solid financial footing now. Problem is, Social Security now pays out more in benefits than it receives in revenue from working Americans, and the reserves in the Trust Funds are being used to make up the difference. According to Social Security’s Trustees, if that continues the Trust Funds will run dry in about 2035 and benefits for everyone will need to be cut by about 23%. That, of course, would be disastrous for most seniors, and is Congress is not likely to allow that to happen. Nevertheless, it’s always best to have a backup plan in place, as explained in this NASDAQ/Motley Fool article by Maurie Backman. Click here to read more.