– so says your uncle at every holiday gathering.
Let’s clear this up once and for all: Social Security is not going away. It’s not some mythical creature like Bigfoot or your coworker who actually uses their gym membership.
Yes, the trust fund is projected to run low in the 2030s. But even if Congress does absolutely nothing (and that’s kind of their specialty), payroll taxes will still cover about 75-80% of benefits. That’s not gone, that’s a haircut — annoying, sure, but not a vanishing act.
And let’s be real: cutting benefits for tens of millions of voters? That’s political suicide. There will be tweaks — probably higher taxes, maybe a later retirement age — but the program itself? It's got more staying power than your grandma’s fruitcake recipe.
Below is an excerpt from 1982 Annual Report from the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds(this is the official title of Social Security; note, your retirement checks from Social Security according to the government are "Old-Age" benefits. We at HPK take umbrage with this title as we see retirement as "next phase" and not "Old-Age"!!)
So, in April of 1982 the projection for Social Security was no benefits (without corrective legislation) just 15 months into the future beginning July 1983! There was significant corrective legislation in early 1983, and Social Security has been sending unreduced checks since then. Now, the runway for change is years, not just 15 months. I hesitate to profess great faith is legislators, but I'm confident they'll do everything to avoid the political suicide of mass cuts to benefits.
So stop stressing. Plan smart, save more, but don’t buy into the doomsday hype. Social Security isn’t disappearing — it’s just due for a tune-up.