Larry, what is gonna happen if social security runs out in 2034 and I am still alive, needing it? Should I withdraw it all and invest it? Sarah

Hi Sarah. Social Security isn't going to simply stop paying benefits at some future time. Social Security will always be receiving income from current workers in the form of Social Security taxes, barring some massive overhaul of the program initiated by Congress. Therefore, Social Security will always be collecting taxes from current workers with which they can pay Social Security recipients. The problem is that current Social Security tax collections are lower than the amount being paid out in benefits.

Currently, Social Security has enough money in their trust fund to pay the difference between the shortage of Social Security tax collections vs. the amount of benefits that need to be paid. Based on current projections, though, the trust fund will be depleted at some future point in time. However, even if Congress allows that to happen, which they won't, a percentage of the benefits owed could still be paid from the taxes being collected. Therefore, there's no reason to panic.

Even if you wanted to, though, you couldn't withdraw your Social Security funds and invest them. Neither withdrawing your Social Security contributions nor asking for a lump sum payment in lieu of monthly benefits is permitted under Social Security law.

Best, Jerry