3 Social Security Facts That Every Millennial Should Know
To put it mildly, there's quite a bit of misinformation about Social Security on social media and in the news, and it's important for Americans to be able to separate fact from fiction when it comes to the nation's largest retirement plan. With that in mind, here are three things about Social Security that all millennials should understand while they're still decades away from retirement age.
You may have heard on social media or in the news that Social Security is "broke." There are several variations of this myth going around, including one that claims Congress raided Social Security's reserves and all that is left is a bunch of IOUs.
To be fair, the latter is true -- in the sense that Social Security's money isn't just a bunch of cash kept in a warehouse. Like any responsible retirement planner would do, Social Security's money is invested. It is kept in interest-bearing Treasury securities to generate income to help fund the program. In fact, in a perfect world, Social Security would be self-sustaining between incoming payroll taxes and the interest earned on its reserves.
Source Fool.com
