Originally called “old-age insurance protection”, Social Security was supposed to be a supplemental form of income for those who had not saved enough. Today Social Security has become the primary source of income for many retirees.
Social Security gets the money it pays out by taxing people who are still working and also by taxing its own payouts! But there will come a time when Social Security has to pay out more than what they bring in. Social Security will then be “bankrupt.” What exactly does this mean and what will probably happen at this time?