Ask Rusty – What Happens if Social Security Runs Out of Money to Pay Benefits?

Dear Rusty: What happens to seniors if the country runs out of funds to pay out monthly Social Security to beneficiaries? I am 78 yrs old and Social Security is my only income. Signed: Worried Senior

Dear Worried Senior: Please put your mind at ease – the government will never run out of money to pay Social Security benefits. That’s because if people are working and contributing to the program (e.g., always), Social Security will always have at least some money to pay benefits. What you are hearing about are recent media reports about Social Security having financial issues, expected to come to a head in just a few (six) years.

The primary risk for you (and everyone else) is this: if the reserves in the Social Security Trust Fund (currently about $2.5 trillion) run dry, it would result in a reduction to everyone’s monthly benefits. Right now, the Social Security Trustees are projecting a cut of about 22% starting in the fall of 2032. But that will only happen if Congress fails to act and reform the SS program before the SS reserves are fully depleted. And that is, in our opinion, not likely to happen unless Congress is completely and totally derelict in its obligations to American seniors and their dependents. Not a pleasant scenario, but neither is it one likely to occur.

Here at the AMAC Foundation, we are working vigorously to prevent the depletion of the Social Security Trust Fund, and our expectation is that Congress will, indeed, eventually take action to prevent any cuts to monthly benefits. It would be political suicide for Congress (and any President) to allow those Social Security benefit cuts to occur. That would greatly increase the poverty level in America. As we have often reported publicly, we have already proposed a commonsense plan to restore Social Security to long term solvency and are working in Congress and with the Social Security Administration to promote the needed reform. You can see more details of AMAC’s plan here: https://amac.us/social-security-guarantee

So, while we fully understand your personal anxiety, we feel confident in assuring you that you are very unlikely to experience any cuts to your monthly Social Security income. We are firmly committed to preventing that from happening and will continue to vigorously lobby Congress to make the SS changes needed before the SS Trust Fund is fully depleted.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, our services are free.

About AMAC

The 2.4 million member Association of Mature American Citizens [AMAC] www.amac.us is a vibrant, vital senior advocacy organization that takes its marching orders from its members. AMAC Action is a non-profit, non-partisan organization representing the membership in our nation’s capital and in local Congressional Districts throughout the country. And the AMAC Foundation (www.AmacFoundation.org) is the Association’s non-profit organization, dedicated to supporting and educating America’s Seniors. Together, we act and speak on the Association members’ behalf, protecting their interests and offering a practical insight on how to best solve the problems they face today. Live long and make a difference by joining us today at www.amac.us/join-amac.

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