Opponents often claim that Social Security is going broke and will soon be bankrupt. However, that isn’t true.
A recent government report is being used by opponents of Social Security and government spending as ammunition to charge that if something is not done, then Social Security will go broke in 2022. The claim is not true, according to Forbes in “Fake News: Why Social Security Isn’t Going Broke.”
Social Security currently takes in more money every year than it pays out in benefits. That has created a surplus in the Social Security Trust Fund. What will happen in 2022 is that, due to demographic changes, Social Security will start paying out more than it takes in. However, since there is a surplus, current benefits will not have to change. The surplus can be spent down. It will not run out until 2034. When that happens, Social Security will not disappear. Instead benefits will be cut slightly, as the program will only be able to pay out as much money as it takes in.
Reference: Forbes (June 18, 2018) “Fake News: Why Social Security Isn’t Going Broke.”