The common claim that Social Security will run out of money in a decade is misleading. But, without action, payments could outpace payroll tax revenue.
WASHINGTON — For years people have claimed that Social Security is on its last legs. So far, lawmakers have acted to prevent that from happening. But, that doesn't mean the rumors stop circulating.
Will Social Security run out in 12 years?
No, Social Security will not go broke in 12 years. But, payroll taxes only cover about 75% of the amount of money going out to recipients. The trust funds that cover the difference could run out if Congress decides not to act to prevent it. People would still receive payments but, they wouldn't be the full …