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Is Social Security Going Bankrupt?
What can you do to take care of your retirement?
For years, I’ve been reading about how Social Security is a Ponzi scheme and that it’s running out of money. Alarmists are telling people that there will be nothing in the coffers for them when they retire. If they don’t accumulate a gigantic portfolio they risk living on cat food in their twilight years.
Before jumping off a cliff — take a deep breath. DO NOT PANIC. Repeat — DO NOT PANIC.
Recently, I read on the government’s own site, that benefits are expected to be fully payable until 2037. After that point, if no changes are made, then payroll taxes will still be able to cover… drumroll… 76% of predicted benefits.
Is this a pleasant scenario? No. But it’s a lot better than thinking there will be NOTHING for retirees.
While unpleasant, it’s not a total disaster.
At least, not for all retirees. The reality is that many high income earners would manage just fine with no social security benefits while those at the lower end of the scale would be destitute if their monthly payout was cut.
Changes have been proposed that would help, such as capping benefits for high wage earners.
