Published by Coco Taylor
Unfortunately, it is not always easy to distinguish fact from fiction. Even as a dog, I often struggle to uncover the truth. For example, when my favorite human, Rob Taylor, told me that it was raining “cats and dogs” and we could not go for a walk, I initially believed him. Moreover, I agreed with his conclusion.
Obviously it would be very dangerous to go on a walk when 60 pound animals are falling from the sky. However, when I went to the windows to check for my new friends, all I saw was rain. It was then that I concluded that Rob was either a terrible liar or incredibly blind. As I have seen Rob drive, I can assure you that it is the latter (and Debbie agrees).
Other lies are not so easy to disprove. For instance, sometimes Debbie tells me that she will give me 2 treats if I behave, but then she only gives me 1 treat that has been broken in half. While she believes that this qualifies as 2 treats, I wholeheartedly disagree. As a result of this trauma, I am especially sensitive to falsehoods, and I want to disprove as many myths as I can. This week, we will debunk 3 Social Security myths.
- Social Security Will Go Broke
Although Social Security faces funding challenges, these issues will likely not result in bankruptcy. The problem is that in recent years, more money has gone out in benefits than has come in from payroll taxes. Therefore, the latest projection estimates that without interference by Congress, the Social Security trust fund will run out of money in 2034. However, even if Congress does nothing, Social Security will still be able to pay out approximately 79% of promised benefits until 2090. Moreover, Congress still has some time to find a fix (and avoid angering millions of voters), so it remains to be seen whether a 21% reduction in benefits will even happen.
- Members of Congress Don’t Pay
As of 1984, government workers (including the president, members of Congress, and federal employees) were included in the Social Security system and paid into it. The confusion on this stems from the Civil Service Retirement System, which covered those government workers before Social Security existed.
- Undocumented Immigrants Collect Social Security
One of the biggest myths regarding Social Security is that undocumented immigrants can collect Social Security. This is factually incorrect. Undocumented immigrants are not allowed to claim Social Security benefits. However, these workers and their employers still pay payroll taxes that benefit the Social Security system. In fact, Stephen Goss, the chief actuary of the Social Security Administration, estimates that undocumented immigrants paid approximately $13 billion into the Social Security trust fund in 2010, and only got about $1 billion in benefits. As a result, in 2010 alone, Social Security received approximately $12 billion from undocumented workers and their employers.
In conclusion, there are many scary Social Security myths that you do not need to worry about because they are factually inaccurate! If you have any questions regarding Social Security myths (or just general myths) feel free to contact the Taylor Financial Group team.
Till next time,