The Surprising Truth About the Future of Social Security
Many of us have heard the myth: Social Security is rapidly running out of money, and there's a fair chance it won't exist when millennials retire -- or even as soon as 2035. Here, we'll review why that isn't the case and why there is at least some reason for optimism surrounding the future of the Social Security benefit program.
Social Security -- in the context of retirement planning -- typically refers to the monthly benefit that seniors receive upon calling it quits. When you file your claim for retirement benefits, you receive a monthly check for the rest of your life, adjusted annually for inflation. (On the subject, retirees collecting benefits in 2023 can expect an 8.7% increase in benefits, the largest rise since the early 1980s.)
In reality, the Social Security Administration, or SSA, administers two programs: the Old Age and Survivors Insurance program, and the Disability Insurance (DI) program (collectively called the OASDI programs). When retirees say they're collecting Social Security, they mean to say they're receiving retirement insurance benefits from the Old-Age and Survivors program.
Source Fool.com
