The Future of Social Security: What You Need to Know

🔒Social Security is the biggest source of income for retirees and provides support to families in the event of a parent or spouse's death or disability.

💰Current workers contribute to Social Security through a payroll tax, with employers also contributing. The money is used to pay benefits to current beneficiaries.

🔍The aging population and the imbalance of workers to beneficiaries have created a long-term financing shortfall for Social Security.

💡Options for addressing the Social Security shortfall include raising the payroll tax, removing the salary cap, cutting benefits, and raising the retirement age.

👵👴Congress will need to make decisions on how to restructure the Social Security program to ensure its sustainability for future generations.

Will Social Security benefits run out completely?

—No, there will always be Social Security benefits in some form, but the structure of the benefits may change in the future.

Will I receive my Social Security benefits if I'm currently working?

—Yes, as long as you are making contributions to Social Security through the payroll tax, you will be eligible for benefits when you retire.

Will Social Security benefits be enough for retirement?

—Social Security benefits alone may not be sufficient for a comfortable retirement, and it is recommended to have additional savings and investments.

Can the Social Security program be sustained without changes?

—No, the aging population and the ratio of workers to beneficiaries make it necessary to make changes to ensure the program's long-term sustainability.

When should I start collecting Social Security benefits?

—You can start collecting Social Security benefits as early as age 62, but waiting until full retirement age or later will result in higher monthly benefits.

00:00Social Security is facing financial challenges due to the aging population but benefits will continue in some form.

02:59Options for addressing the Social Security shortfall include raising the payroll tax, removing the salary cap, cutting benefits, and raising the retirement age.

05:31Raising the retirement age is a potential option, but it would result in lower benefits for retirees.

06:57There will always be Social Security benefits in some form, but the structure of the benefits may change in the future.

07:54Social Security is a compact between generations to take care of each other in retirement, death, or disability.