And while the end of that conversation usually included a bit of back-and-forth about exactly how much money the agency had left, there was always one prevailing sentiment: Social Security is going broke. However, some now say that Social Security may be in better shape than we thought. And, it doesn't just sound like the agency will be able to squeak by for a few more years, either. Some even say it has a long future ahead of it... even if that future does look different from what past retirees have had.
April's issue of the Journal of Experimental Psychology: General includes a study that finds that around two-thirds of Americans believe the SSA will stop sending Social Security payments in 2034, when the agency is expected to experience a shortfall due to paying out more than it receives in tax revenue.
Instead, AARP says the SSA will be able to continue making payments, since the administration will continue collecting money from the paychecks of working Americans as it has always done. But those receiving Social Security benefits may see their checks shrink by 81 percent, a figure AARP says the SSA will likely be able to cover with its new cash flow.
How Much Will Your Social Security Payment Be
While I think we can all agree that receiving a smaller portion of Social Security benefits, when you pay the same amount into the pot as everyone else does, may feel like a scam, but without some sort of congressional intervention, this is the future many of us are looking at.
According to the SSA, the administration will use the highest 35 years of indexed earnings (a fancy way of saying the income is adjusted for inflation to keep up with current trends) when determining what you're entitled to each month. The website has a spreadsheet to help you figure out this number. From there, you can enter it into just about any benefit calculator, and you will find out what your payout should be when you retire.
Of course, if you're going to start collecting after 2034, you might want to do another quick calculation to see what 81 percent of that figure will be, since that may be closer to the true number you'll be taking home each month. That said, Social Security is a hot topic for politicians, and every year someone comes up with an idea to "save" It. Hopefully, one of them actually comes to fruition before the agency is set to experience a shortfall, otherwise a lot of retirees are going to experience their own shortfall when they receive that monthly payment.
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