Social Security faces legitimate funding challenges, but it won’t completely run out of cash for monthly benefit payments.
No, Social Security is not going to go bankrupt. But the program faces legitimate funding challenges that will most likely lead to lower monthly benefit payments in the future. Claims that Social Security will go bankrupt are false. The program won’t completely run out of cash for monthly benefits, even if its trust funds are depleted, since it always receives income from taxes. , which is deducted from every paycheck you receive.
Social Security’s income is deposited into two financial accounts called trust funds – the Old-Age Survivors Insurance Trust Fund and the Disability Insurance Trust Fund. Those trust funds are used to pay out Social Security benefits. When Social Security collects less revenue than it needs to pay benefits, the program must cash in trust fund reserves to help cover the cost of monthly payments., Social Security’s total cost exceeded its total income. At that point, the program began drawing down trust fund reserves to help pay for benefits, according to the CBPP. that Congress would “need to make changes to the scheduled benefits and revenue sources” for Social Security in the future.
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