Let’s Put the Social Security Bankruptcy Rumors to Bed

Chances are you’ve heard rumors that Social Security is going bankrupt. That’s not true — but the program is in dire financial shape. According to an article by The Motley Fool, Social Security currently pays out more money in benefits than it collects through payroll taxes. This is creating a funding shortfall.

To cover that difference Social Security has been dipping into its trust fund, and if nothing changes it could reach a deficit in about 10 years. At that time, Social Security would only be able to pay out about 80 percent of promised benefits. So, it is correct to say that Social Security is facing a serious funding issue, but it is not going bankrupt. At issue now is what lawmakers will do to secure its solvency.

The Seniors Trust is committed to improving the financial well-being of America’s retirees through passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and this bill will ensure the long-term solvency of the Social Security program.