Though almost all of us will use it, there are many misconceptions about Social Security.
The basics of the program are simple. We pay in now, and the funds are there for us in retirement. But when delving into the technical side, things can get a bit more confusing.
A lot of this is because of half-truths and misunderstandings. Some of these relate to the program’s financials and how they impact the future. But others involve the role we play in influencing how things shape up.
Is the Program Really Bankrupt? Not Quite Yet
While some people would say that the future of Social Security looks bleak, is it as bad as it seems?
It’s easy to look at the financial data and assume that retirement security is in doubt. The debt is growing, inflation is rising, and there are rumors a recession is coming.
But does this really mean that Social Security is bankrupt, or heading there?
The fact is, the program isn’t broke. It’s poised to pay out benefits in full throughout 2035. Even after that, the program will only need some minor adjustments in order to meet its obligations.
But this ties into the second misconception about Social Security — that these simple changes will be easy to make.
The Biggest Social Security Misconception
Social Security is something that should be managed for retirees — ideally, we shouldn’t have to fight for what is rightfully ours.
But as we know, policymakers don’t always do the right thing. They have to be reminded why it’s important, and the only way this happens is if we all work together.
One of the biggest Social Security misconceptions is that we’re helpless to make changes. Contrary to what some people believe, we don’t just have to sit back and watch the program sink as spectators.