Social security payments provide a cushion of financial security for most retirees. For those retirees who are well funded, the monthly check could pay for family vacations. For others, it may provide what they need for housing and food. In whatever way you use the money, you’ll want to educate yourself on the program’s truths and myths.
No, contrary to rumor, social security isn’t running out of money because it’s revenue from payroll tax funds which is going out. However, financing the fund faces challenges, and it will need to take steps by 2035, similar to what it did in 1983 when the program faced a shortfall.
When to take social security is different from what it was in the past. In 1935, when social security began, 65 was the age of eligibility. That is no longer a hard and fast rule, and you can start taking a reduced amount of your benefit at the age of 62.
Is there a cost of living increase guaranteed each year? Do you pay taxes on social security? Does the government raid the social security coffers to pay for other programs?