Social Security funds are held in a trust fund. The trust fund draws interest to assure that there are sufficient funds available to go to workers when they reach retirement age. There are problems with the system that needs improving, but the system will not go broke.
Are My Social Security Benefits Safe In This Economy?
There is some doubt about whether or not there still is a trust fund currently. There is also some question about whether taxes will need to be increased now to be able to pay retirement benefits to the baby boomers when they retire in a few years.
Is Social Security Only for Those Who Are Retired?
A percentage of every worker’s salary is placed in a fund. The fund collects interest. The money is set aside and given back to the worker when they reach retirement age. Are My Social Security Benefits Safe In This Economy? The money is also being held in a trust fund and accumulating interest to provide sufficient funds for retirement.
When Social Security Was Created was it Meant to be the Only Source of Retirement?
Social Security benefits were created to add to retirement benefits of workers when they retired. The funds were never meant to be the only source of their retirement funds. Are My Social Security Benefits Safe In This Economy? Currently, the benefits are safe, but the retirement age might be raised to 75 years, and the benefits cut back.
What Is Causing The Problem With Social Security?
When Social Security was established people died younger. Most did not live long enough to collect social security benefits. This has all changed. People are living longer and retiring sooner. Are My Social Security Benefits Safe In This Economy? Less workers and more retirees signifies that there is more being paid out of the Social Security retirement fund, than being added. Changes will need to made within the next few years when the Baby Boomers start collecting retirement benefits or social security will go broke. Those already collecting benefits will not be affected.