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  • Getting Ready to Retire
  • Social Security
  • Getting Ready to Retire
  • Social Security
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ANSWER: False.

Social Security may eventually fall short of the money it needs to deliver full benefits, but it's not likely to go broke altogether.

Here's the deal: Social Security is mostly funded by payroll taxes and taxes on Social Security benefits. In recent years, those revenues have not been enough to cover full benefits, so the system has used interest on its reserves to close the gap. The reserves are projected to run out in 2034, at which point tax revenue will generate enough to cover only 79 cents for every dollar of scheduled benefits.

Chances are strong that Congress will come up with a way to fix the system before that happens, but, even in a worst-case scenario, you would still receive more than three-fourths of your benefit.

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