People who work hard and pay into Social Security throughout their careers usually expect to get benefits when they retire. A new poll from the Nationwide Retirement Institute, on the other hand, shows that 72% of people are afraid that Social Security will run out of money before they die.
Not only that, but 23% of those who answered think they won’t get any of the Social Security payments they’ve earned. Over 1,800 adults aged 18 and up were asked to fill out the poll. It shows that Millennials and Gen Xers are the most worried about the stability of Social Security’s funding. This worry is mostly caused by not knowing what will happen with the program in the future.
Understanding the Future of Social Security
There is some truth to the gloom. Social Security’s trust fund, which is used to pay out retirement payments, is expected to run out by 2033. This means that only 79% of payments will be paid at that time. Many Americans aren’t sure if the benefits they were promised are real because of this looming problem.
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Even though the fight about the future of Social Security is still going on, it is still an important issue for everyone to think about, especially those who are getting close to retirement. Keep up with this problem and take part in discussions about it to learn more about how it might affect your financial future.
As the election for president in November gets closer, people are paying close attention to how the candidates feel about the future of Social Security.
Even though some people are worried, experts say that worries about Social Security benefits going away totally are mostly unfounded.
In an interview with CNBC.com, David Blanchett, managing director and head of retirement research at PGIM DC Solutions, said, “I think the odds of it going away completely are really, really low.”
Potential Changes to Social Security Benefits
There is a chance that benefits could be reorganized, but people who make more money would probably get less money to replace their income. That being said, Blanchett stresses that Americans shouldn’t worry about Social Security going away completely.
Expert Opinions on Social Security’s Longevity
A certified financial planner named Joe Elsasser, who is also the head of the Social Security claiming software company Covisum, agreed with what was said. He recently told CNBC.com that Social Security payments may go down in the future, but it is very unlikely that they will go away completely.
- Public Pension System: A safety net that will continue for nearly all Americans.
- Restructuring: High earners might see reduced benefits, but not a complete loss.
- Expert Assurance: Both Blanchett and Elsasser agree that Social Security is here to stay.