Last updated on June 28th, 2020 at 06:42 pm

This question “will social security go away” is mentioned often in blog articles to hook readers. You spend time going through the blog and find in the end that the writer has no hard facts nor are they an authority on the topic.

Social Security is part of the fabric of American Life

To be clear, Social Security is part of the fabric of American life. I am not an elected official nor have I read the entire text of all Social Security laws. Unless our government collapses, people will receive Social Security.

So, how do I know that Social Security will not go away? Ok, I do not know this for a fact but I will conclude this from the following:

  • COVID caused the government to find trillions of dollars, much more than is needed to fund Social Security for years.
  • Social Security will be paid for, voters will demand it
  • The largest voting “bloc” are people on Social Security who will demand it.
  • The number of people employed by the government and private industry who rely on Social Security revenue will demand it.
  • Social Security is part of our overall economy. Not funding it would be similar to disbanding the military.

Do you understand what I am saying? The idea that Social Security will not be around is ridiculous. Frankly, those who write this nonsense rarely tell you Social Security will go away, they just hint it. They read that the fund will be exhausted by X year.

Social Security Trust Fund

Most of us know how the Social Security trust fund works. The government borrows the money to fund current operations. The trust fund is a construct only Current revenues fund the Social Security payments. These current revenues include contributions by people who are still working. The chart above indicates where benefits are going.

The writers who tell you Social Security is not going away but the benefit will be reduced are equally not truthful. None of them know this either. Only Congress can make changes to the amount paid out. It is not likely current recipients will receive a reduction in their benefit.

The retirement age may be extended again

The retirement age may be extended for those who have not filed to collect a benefit. Congress raised the income tax rate from zero on Social Security benefits to it’s current rate at 85%. They could raise that to 100% at some point and that could affect those receiving a benefit.

The operative terms here are “could” and “may” as opposed to “will”. There is no need to panic when you read some of these articles about potential actions regarding Social Security.

Congress will probably make some changes to Social Security because people are living longer. That makes sense. What does not make sense is for Congress to tamper with the existing benefit tables for people who are already retired. Remember those votes.

Back to COVID, if elected officials can fund the Kennedy Center during a crisis with printed money, they can find a way to keep Social Security solvent into the future. And they will.

The secret about immigration

Another little secret that bureaucrats and elected officials fail to communicate is about how immigration affects Social Security. The birth rate in the U.S. is healthy now. Its above replacement rate. Other countries have serious problems such as Italy where the birth rate is less than two for two.

If the site of the population below those receiving benefits is too low, the burden on keeping the system going at its present rate becomes at some point unsustainable. That is without adjustments.

The U.S. population is stable in large part to immigration. This is one reason why so many in power look the other way at illegal immigration. The argument is that our rate of legal immigration is so strong that we do not need illegals. Regardless of your opinion, we do need legal immigration to keep our Social Security system healthy.

Another thing about Social Security that has caused the fund to shrink. Changes to the original intention of the fund to help people in retirement has morphed to adding all types of recipients.

Many are on Social Security who were not in the original plan

Dependents, disability, and other recipients were not originally in the plan. The plan was calculated on a life expectancy. The designers knew that people with kids would pass along but that meant there was more for those on the program. With the addition of dependents, children receive benefits until they are 18, that was not in the original plan.

People who are disabled before retirement can claim social security disability and live many more years before they pass away. These are facts only, you may or may not agree with these changes but it helps to understand how we got here.

You decide for yourself about whether Social Security will be around. You are as qualified as most bloggers to make that determination. If you see legislation come up that will adversely affect Social Security, you know what to do about that.

Read other articles on Social Security on this site. One popular question is “when should I take Social Security”. We discuss that and other similar topics on this site. Many sites offer strategies about when to take Social Security, you need not pay anyone to learn what you can do. Ultimately you must decide what works best for you and your spouse.

Please read others articles on this site and leave comments. This article is my personal opinion and things change so check back as I update my posts.

Thanks to Flickr.com for art.