Is Social Security Bankrupt?

Social Security, originally known as “old-age insurance protection,” was designed to be a supplemental income for those who hadn’t saved enough for retirement. Over time, it has evolved into a primary income source for many retirees. It was never intended to be a sole provider of financial stability in retirement, but that’s where it stands today.

Social Security gets its funding by taxing the working population and even taxing its own payouts. But here’s the critical issue: as the population ages and more people begin to retire, there will be a time when Social Security needs to pay out more than it takes in. This could make Social Security effectively “bankrupt.”

But what does “bankrupt” really mean in the context of Social Security, and what could unfold? Is this something you need to plan for in your own financial future?

In today’s episode, the McFies discuss the possible outcomes when Social Security reaches this point, the implications for future retirees, and how to prepare for the possibility that it may not be enough to rely on. Gain a better understanding of how Social Security works, its sustainability, and what you can do to ensure your retirement is secure—no matter what happens with the system.

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Resources:

Internal Real Rates of Return for Social Security

3 Things You Can Do to Becoming Wealthier – 57-page Guide