| The future of Social Security remains uncertain, forcing people to wonder: Will the benefits program actually go broke?
Most Americans are indeed worried that Social Security will run out of money in their lifetimes. In fact, 47% of millennials said they believe "they will not get a dime of the Social Security benefits they have earned."
This is all according to a recent survey from financial services company Nationwide.
Fears that the benefits program's prospects have only gotten worse amid the Covid-19 pandemic were highest among Gen Xers (83%) and millennials (77%). Meanwhile, baby boomers clocked in with a 61% fear factor.
Many Americans — 59% — say they are more pessimistic now about the program running out of funding following the onset of the pandemic. Meanwhile, 19% say Covid-19 has prompted them to reconsider their plans for claiming benefits, with 11% planning to delay filing and 9% planning to claim earlier.
With all that said, worries that the program will run dry and benefit checks will stop are simply unfounded, according to financial experts.
Social Security pays out nearly $93 billion a month to some 65 million retirees, people with disabilities and their family members. Given Social Security's importance to American families, the many concerns about the continued health of the program are understandable, experts say.
However, as long as workers and employers pay payroll taxes, Social Security will not run out of money. It's a pay-as-you-go system. To that point, revenue coming in from FICA and and the Self-Employed Contributions Act taxes largely cover the benefits going out.
Social Security does face funding challenges.
The trust funds on which Social Security relies to pay benefits have been running low. The last official projection by the Social Security Administration indicated that without changes in how Social Security is financed, the surplus is projected to run out in 2035.
Even then, Social Security won't be broke. It will still collect tax revenue and pay benefits. But it will only have enough to pay 79% of scheduled benefits, according to the latest estimate.
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