Social Security is a crucial program in America that has kept millions of seniors out of poverty. However, many individuals mistakenly believe a concerning myth about Social Security that could impact their financial choices negatively.

Here’s an overview of this prevalent misconception, along with accurate information about the future of this essential retirement income source.

Image source: Getty Images.

The Myth: Social Security Benefits Will Disappear

A study from the TransAmerica Center for Retirement Studies reveals that 38% of current workers are worried that Social Security benefits will vanish when they need them. That’s nearly four out of ten people holding onto this incorrect belief.

While there is a small kernel of truth in this belief, it is misleading. Social Security does possess a trust fund that is predicted to run out around 2035. This situation is concerning, but it does not mean that benefits will cease altogether.

In reality, Social Security continually receives revenue from current workers. Even with the trust fund depleted, the flow of funds will persist.

Current projections suggest that, in 2035, Social Security will still manage to pay approximately 83% of scheduled benefits, despite the trust fund running dry. Over the years, this percentage may decrease, potentially resulting in about 73% of the promised amount being paid to seniors.

While these figures indicate that retirees could face reduced payouts, it should be noted that the program is unlikely to cease paying benefits entirely, contrary to widespread fear.

Will Social Security Benefits Experience Cuts?

If you’re worried about Social Security not meeting its promises, there’s good reason for relief. Most individuals will still receive a majority of their expected benefits, even in challenging scenarios.

Moreover, it is improbable that lawmakers will implement cuts that would stem from the trust fund depletion. Elected officials are aware that reducing Social Security benefits is politically risky, as this program is vital for many and older Americans constitute a significant voting bloc.

It is expected that Congress would take necessary measures to prevent substantial reductions to benefits, even if it involves reallocating funds from other government sectors to meet obligations.

There’s a strong likelihood that today’s workers will receive all or most of the benefits they anticipate. Should there be any reforms leading to cuts, they will likely be rolled out gradually, much like the amendments made to Social Security in 1983 that are still being phased in until 2025.

Avoid making poor choices, such as claiming benefits too early out of fear of future unavailability. Rest assured, Social Security is here to stay, supporting your journey toward financial security in retirement.

The Overlooked $22,924 Social Security Bonus

If you’re like many Americans, you may be behind on retirement savings. However, certain lesser-known “Social Security secrets” might help you enhance your retirement income. For instance, there’s one simple trick that could potentially add up to $22,924 more each year! By learning how to optimize your Social Security benefits, you can retire feeling confident and secure. Click here for more information on these strategies.

Discover the “Social Security secrets” »

The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.