Full question: I’m 34 and finally starting to take retirement planning seriously. With all the talk about Social Security turning 90 this month and all the headlines about it “running out of money”, I’m wondering what to expect. Will Social Security still be there when I retire? Should I plan like I won’t get anything at all?

Hi there,

You are very smart to be considering your financial future early in your working years and to be asking these questions about Social Security! I am confident that the Social Security program will still be there for you when you retire.

The program pays benefits on a “pay-as-you-go” system, meaning the payroll tax contributions made by today’s workers are paying the benefits for current retirees. The current number of workers to retirees is not enough to cover full benefits. However, there has been a surplus in the trust funds for many years that has provided for full payment of benefits. This surplus will be depleted in 2034 therefore, if Congress does not act to make changes to the program, full benefits would not be payable at that time. It is predicted that only about 80% of anticipated benefits would be payable.

Plan for your future by staying informed on the status of changes to Social Security. By the time you retire, you will have a very clear understanding of what financial resources to expect from Social Security.

All the best,
Martha

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