WHAT'S AHEAD FOR SOCIAL SECURITY

Bipartisan collaboration on a mix of reforms will likely be needed to keep the system solvent and benefits intact.

- BY RICHARD EISENBERG

In a recent Transamerica survey, “Social Security Turns 90,” 71% of workers were concerned that Social Security won’t be there when they are ready to retire. Does that concern you? Yes, it worries me that the looming depletion of the Social Security Trust Fund [in 2033, for the retirement fund, based on recent estimates] may lead to suboptimal decision-making. People may think I better start claiming as soon as I’m able to, which for most is age 62. That could mean a steeply reduced benefit for the rest of their life.

The widespread fear that Social Security won’t be able to pay any benefits is not grounded in truth. Depletion means that, if that time comes, the system will be able to pay only 77% of guaranteed benefits. As long as money is coming into the system through payroll taxes, which provide the majority of funding, there will be money available to pay some benefits.