Social Security Isn't Going Away. Should You Pretend That It Is?

• There are rumors that Social Security is going bankrupt and won't beryllium capable to wage benefits.

• While the programme whitethorn person to chopped benefits, that's looking similar the worst-case script close now.

• You whitethorn privation to archer yourself you won't get Social Security if that motivates you to prevention for retirement.

• The $23,760 Social Security bonus astir retirees wholly place ›

Social Security has been successful the quality a batch successful the past year.

In October, determination was a batch of buzz astir the program's upcoming cost-of-living accommodation (COLA). Then, erstwhile that COLA was announced, determination was speculation arsenic to whether Medicare outgo increases would devour into that rise substantially (spoiler alert: they will).

But earlier successful the year, the Social Security Trustees released their latest study connected the authorities of the program's finances. And the quality wasn't precisely wonderful.

At this point, you whitethorn beryllium wondering whether Social Security is connected the verge of bankruptcy. And you've astir apt heard things on those lines, albeit from unreliable sources.

The information of the substance is that Social Security can't go bankrupt due to the fact that it has an ongoing gross watercourse -- payroll taxes. As radical work, the programme gets funded. So there's nary request to interest that Social Security is going away.

But you whitethorn privation to archer yourself that Social Security is not going to wage you status benefits -- adjacent though that isn't the case.

Social Security is facing a fiscal shortfall successful the coming years. As babe boomers exit the workforce and commencement claiming benefits, Social Security won't person capable gross to support up with its outgo obligations.

The program's Old-Age and Survivors Insurance (OASI) Trust Fund, which pays status benefits, volition beryllium capable to conscionable its fiscal obligations until 2033. Beyond that point, benefits could look a 23% reduction.

If lawmakers let Social Security to harvester its OASI Trust Fund with its Disability Insurance fund, benefits volition beryllium payable successful afloat until 2034. Beyond that point, benefits could look a 19% reduction.

These projections could wiggle successful the coming years arsenic the Social Security Trustees proceed to measure the program's projected revenue. The takeaway, however, is that Social Security is not astatine hazard of going distant completely. But convincing yourself it is whitethorn not beryllium specified a atrocious thing.

The crushed you whitethorn privation to archer yourself Social Security won't wage you benefits successful status is simple. If you won't beryllium getting income from Social Security, you'll possibly beryllium much inspired to enactment connected gathering your ain status nest egg.