The future of the Social Security Administration (SSA) has been a much-debated topic for as long as I can remember. Even as a child, I remember my grandparents talking about whether the agency would have enough money to pay for their retirement and what it would look like when it was time for their children (and their grandchildren) to retire.
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.
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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.
And while AARP agrees that the money is shrinking due to the number of Baby Boomers who have been dipping into the account as they retire, the publication says that, much like the great line from Mark Twain, stories of the administration's death are largely exaggerated.
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.
Related: Social Security Delays Major Update for the Second Time, Which Could Dramatically Impact New Cases
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.
As for how much your Social Security benefits will be when you retire, well, that's a tricky question to answer. That's because there are many factors to consider, including the year you were born (retirement age has changed over the years, and depending on when you were born, you may be able to collect as early as 62 or have to wait until you are older). Additionally, your lifetime income is also taken into consideration when determining how much you are entitled to based on how much you paid into the Social Security pot.
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.
Related: You Won't Be Getting Your April Social Security Check Today—Here's When It Actually Arrives
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.
Hence then, the article about apparently the future of social security isn t all doom and gloom was published today ( ) and is available on Parade ( Saudi Arabia ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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