Is Social Security REALLY Running Out of Money?

Almost anyone you talk to about Social Security has something to say about the fact that the system is going broke. This seems to be common knowledge among the peoples of America. Within a few years it is estimated that Social Security will be paying out more than it is taking in.

Not only are the citizens worried about the lack of Social Security in the future, but even the Social Security system board of trustees releases yearly projections about the impending exhaustion of Social Security funds. Sure, the numbers change each year, but the major consensus is that they will run out of money this century.

In 2000 they said Social Security would be exhausted by 2032. In 2002 they claimed it would be out of money by 2037. Now they are saying we have until 2041. The Congressional Budget Office says we’ll be okay until 2052.

These projections seem to make sense, but there are still certain things being overlooked: the growth rate of the economy and low projection numbers.

Although the economy has grown on an average of 3.4 percent from 1960 to 2005, the projection reports are calculating their low cost and intermediate projections at rates at 2.3 and 2.9 percent. Both of these projections are well below the actual growth rate of the country.

When these numbers are taken into inconsideration, the low cost projection shows that the Social Security system never runs out of money.

Could this be true?








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