Social Security's Financial Situation Revealed: The Silver Lining You Need to Know

Benefits will not go away completely

In the coming years, Social Security is expected to owe more in benefits than it collects in payroll tax revenue. But that doesn't mean benefits are disappearing. The latest estimate from the Social Security Trustees is 17%, which means current and future retirees can still anticipate being able to collect the majority of the benefits they're in line for.

Benefit cuts may not even happen

The other piece of this puzzle is that while Social Security cuts are a possibility, given the program's financial circumstances, they're definitely not a given. This isn't the first time in Social Security's history that benefit cuts have been on the table due to a financial shortcoming. At this point, the Social Security Trustees are projecting that benefit cuts may become necessary in 2035, the year during which the program's combined trust funds are expected to run dry.

Know the facts, but prepare regardless

The idea of paying into Social Security year after year only to not receive any benefits in return is beyond upsetting. And you can also take some comfort in the fact that lawmakers have never allowed Social Security cuts to happen in the history of the program. Still, it's a good idea to prepare for a reduced Social Security benefit throughout your retirement -- just in case.