-Source-USAToday-
Millions of Social Security recipients and other retirees will get a 2 percent increase in benefits next year. It's the largest increase since 2012, but comes to only $25 a month for the average beneficiary. (Oct. 13) AP
Once again, there's dire news about Social Security. Its trustees claim in their 2018 report that they must tap the program's sacred "Trust Funds" to cover this year’s benefits. And they warn that the funds will be depleted by 2034, forcing steep benefit cuts, unless Congress fixes things. Scary.
And wrong. Most Social Security fears rest on myths. Here are four of the biggest – and the reasons why they're overblown.
Myth No. 1: If the funds run out, today’s workers will never get what they put in.
Reality: As I wrote last December, the Social Security "trusts" aren't in the “lockbox” of "Saturday Night Live" fame. It is a pay-as-you-go program. Your contributions pay current retirees. And when you retire, workers pay your benefits. The funds are merely random accumulated surpluses from years when revenues happened to exceed benefits. This was never about retirees recouping contributions. Read more
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