9 Commonly Believed Myths about Social Security

2) There will not be enough money in Social Security when you retire

This myth, stems back to the previous one mentioned, and the response is the same. As long as we have taxpayers, we will have a social security program, or the like.

In fact, Nancy Altman, a historian of the social security program, states in her book The Battle for Social Security: From FDR’s Vision to Bush’s Gamble, that “As long as the federal government has, under the Constitution, ‘Power to Lay and collect Taxes’ and the authority to issue and sell Treasury bonds, it and its programs will not go bankrupt.”

It is true to say that if a fix is not in place for the Old-Age and Survivors Insurance (OASI) retirement trust fund which would likely be exhausted in 2035, or the Disability Insurance Trust Fund, which will likely be exhausted by the end of this year then you could see social security benefits cut by 20%.

However, two important things to remember. Exhaustion does not mean there is no money to pay out, as current revenue would still cover benefits. And politicians are highly unlikely to not have a fix in place before the exhaustion period, as that could kill a political career.