“Social Security cannot go bankrupt. Ever. If bankruptcy means that the program will run out of money, it is not possible,” said Martha Shedden, president of the National Association of Registered Social Security Analysts, based in Melville, New York, in an email. “Retirees are being paid partially right now using a surplus of trust funds that have been built up since the 1983 amendments,” she said, adding that the surplus is what the Social Security Administration says will run out in the next decade or so. “However, the program is a pay-as-you-go system with workers paying in what is needed for retirees to be paid their benefits,” Shedden said. “There will still always be workers paying into the system, but there are not enough workers per retiree, meaning that the payments will not be enough to fund 100% of retiree benefits as the laws and rules are now written.”
Published by Pamela Kweller, RSSA®
Pamela Kweller is the Content & Community Manager at RSSA. She is also certified as a Registered Social Security Analyst®. The mission of RSSA is to help Americans get the maximum Social Security income they have earned, enabling them to enjoy their lives more fully. Contact Pamela: pkweller@rssa.com View more posts