Is Social Security going bankrupt? No. While the Trust Funds are expected to become depleted in 2034, there will always be money going into the program via payroll taxes. Stories and headlines suggesting Social Security is going bankrupt are misleading.
What will happen once the Trust Funds run dry? The Social Security program will continue to funded by the taxes paid by current workers in order to pay the current beneficiaries. Social Security is a “pay as you go” program.
Will benefits be paid in full once the Trust Funds become depleted? Unfortunately, in the unlikely event of congress taking no action, it is estimated that once the Trust Funds run out, only 80 percent of benefits will be payable.
Is congress going to do something about this? Social Security is a very important and major source of income for many, many Americans. And while the program is not going bankrupt, it definitely needs more resources and financial support. Congress must take action and make changes to establish a strong future for the Social Security program, ensuring it can continue to support all of its future beneficiaries.