As the years tick by steadily toward retirement, we all feel a little more comfortable knowing Social Security will be there for us. Or will it? People often speculate about Social Security running out one day.
Will those of us without pensions be able to survive solely on the money we have saved? What about those who haven’t saved enough? It’s scary to think of the Social Security safety net being gone. Here we’ll give a brief Q&A on how Social Security is set up and what experts say is really in store for its future.
1. How is Social Security set up?
Currently, you and your employer each pay 6.2% of your wages into Social Security (up to a taxable maximum of $128,700). If the government collects extra extra money than the amount it needs to pay out, that money goes into something called the Social Security trust fund.
Currently, Social Security is the main source of income for almost half of elderly married couples and 71% of elderly single individuals.