Common Myths About Social Security
Tampa, FL (Law Firm Newswire) August 24, 2021 – Social Security is a safety net for millions of Americans. While everyone who works will eventually qualify for Social Security benefits upon their retirement, the Social Security Administration also provides important benefits to those who experience disability long before retirement.
However, the Social Security system is commonly misunderstood, and everything about the Social Security Administration and the benefits it oversees is quite complex. Adding to the confusion are many widely believed myths that, while inaccurate, tend to frame people’s perception of Social Security benefits. Below are just a few.
Social Security benefits will not be available for younger generations.
While there is always the possibility of an unforeseen event or political change that could do away with Social Security benefits, the pool of money used to provide benefits will run out will not likely dry up. The Social Security Administration pays benefits out of a fund that is consistently replenished by Social Security taxes. Thus, as long as Americans are working, deposits will be made into the Social Security fund.
For many, the concern is that society’s needs will become greater, taxing the current reserves. While this has happened over recent decades, Congress has always come through to fund Social Security. According to one recent report, even if Congress took no action to provide additional funding for Social Security programs (which, again, is not likely), the existing fund has enough in it to cover 100 percent of the monthly benefits for at least ten years. After that, the Social Security Administration could pay 75 cents on the dollar into the foreseeable future.
Social Security is unsustainable at its current rate.
Many people skeptical of social security claim that the current workforce will be unable to support the tens of thousands of retiring employees in the coming decade. However, this concern is largely unfounded. Those who cite this concern point back to a time when the wages of 16 workers supported every social security beneficiary. Today, that number has dropped to around three, due mainly to the increasing number of people receiving Social Security benefits.
The reality is that the 16 to 1 ratio was only in existence for a few years after implementing benefits in 1955 before dropping dramatically to less than 9 to 1. By 1975, the ratio of recipients to workers was 3.2 to 1, just about what it is today. Thus, the mere fact that the number of workers is decreasing in relation to the number of recipients does not mean that benefits will dry up.
COVID-19 is going to deplete all the government’s resources.
The COVID-19 pandemic certainly took the country by storm, claiming hundreds of thousands of lives and costing the country billions of dollars (or more). However, the federal government has these resources and access to more. While the Social Security Administration has asked for more funding in light of the pandemic, this is expected during a once-in-a-generation event. Which is exactly what the pandemic was.
Florida Social Security and disability attorney, David W. Magann, explains, “The bottom line is that Social Security isn’t going anywhere, not in the short-term, at least. And more than likely, it will be around not only for our children but also our grandchildren. Quite simply, the federal government can’t let Social Security fail, and lawmakers know this. When push comes to shove, politicians on both sides will do what they need to to ensure the long-term viability of Social Security benefits.”
Attorney David Magann is a Florida, social security disability attorney with years of hands-on experience helping individuals and families navigate the complexities of the Social Security benefits process. Attorney Magann is a compassionate advocate who diligently advances his clients’ interests at every opportunity, providing practical advice on various related legal issues, including estate planning and Veterans’ benefits. Attorney Magann has offices conveniently located in Brandon and Tampa and can be reached at http://www.floridasocialsecurity.com/Learn more at http://www.floridasocialsecurity.com/ David W. Magann, P.A. Main Office: 156 West Robertson Street Brandon, FL 33511 Call: (813) 657-9175 Tampa Office: 18715 N Dale Mabry Hwy Lutz, FL 33548