True or False: Social Security is Running Out of Money

This is kind of a trick question. The latest predictions show the Social Security trust fund’s reserves will be depleted by 2035. According to Yahoo! Finance, the problem is the number of people receiving Social Security is outpacing the number of people paying into the program. If nothing changes, the trust fund will only be able to pay 80 percent of its scheduled benefits.

To answer the question, it’s both true and false. Social Security is running out of money, but it will still be able to pay a portion of retirement benefits.

This isn’t the first time this has happened. According to the article, the Social Security Administration has faced projected financial shortages before. In 1983, Congress made changes that helped replenish its reserves. It looks like lawmakers will need to do that again.

The Seniors Trust is calling on Congress to enact the Social Security Expansion Act. Not only would this ensure its long-term solvency, but it would increase monthly benefits and establish a fairer cost-of-living adjustment (COLA).