"When you think about Social Security, it won't be as surprising to learn there is a gap in myths versus realities. Some of these differences are generational, as it's clear that baby boomers, the generation most dependent on Social Security, are often unclear on what exactly this program is, how it works, and how it will benefit them. Most concerning is the apparent misconception about the program's sustainability."
"It is important to start any conversation about Social Security around the misconception benefits will disappear in the next few years. First and foremost, Social Security is one of the biggest aspects of our federal budget, so there is funding, but there are concerns that funding could see a shortfall in the next decade. The OASI trust fund is projected to deplete in 2033 under the 2025 Trustees' "intermediate" assumptions. After depletion, ongoing payroll taxes would still cover roughly 77-80% of scheduled benefits absent reform."
Many baby boomers hold misconceptions about Social Security, including fears that benefits will disappear and confusion about benefit start ages. Social Security represents a large part of the federal budget, so funding exists but faces potential shortfalls. The OASI trust fund is projected to deplete in 2033 under the 2025 Trustees' intermediate assumptions. After depletion, payroll taxes alone would likely cover about 77–80% of scheduled benefits absent reforms. Congress must enact reforms or adjustments to restore full funding. The timeline projects OASI depletion in 2033 and there is a notable benefit difference for delaying benefits until age 70.
Read at 24/7 Wall St.
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