It is increasingly common to hear that Social Security "is going to end" or that there simply won't be any money when it's time for us to retire. This fear doesn't come from nowhere, but it doesn't reflect the whole truth either. If you also have doubts about whether Social Security is really bankrupt, here's what's happening and what we can expect.

First, let's clarify something key to dispel any myths or inaccurate information circulating online: the system isn't disappearing, but it is facing a significant financial problem. Currently, the program pays out more money than it receives, which has been depleting its reserves accumulated over decades.

Those reserves, which totaled $2.7 trillion by 2024, could run out around 2032 if no changes are made. With each passing year, the margin has shrunk: between 2020 and 2021, it was predicted that those funds would be depleted between 2035 and 2036.

This is where the confusion begins. Many people interpret this as the complete end of the program, but that's not the case. Even if that fund were to run out of money, Social Security would still receive income each year through payroll taxes. According to estimates from the American Association of Retired Persons (AARP), in that scenario, about 81% of current benefits could be paid. There's a big difference between receiving 81% and receiving nothing. However, many workers don't see it that way. A study by the University of California, Los Angeles (UCLA) and Cornell University revealed that nearly two-thirds of Americans believe the payments will disappear completely. According to researcher Suzanne Shu, a professor at Cornell University, workers are saying things like, "Social Security is bankrupt; it's not going to exist." That idea, according to the study, is closely tied to how the issue is communicated in the media and public discourse. "It doesn't help that politicians and other people are saying that Social Security is bankrupt," Shu noted.The UCLA study isn't the only one reflecting alarming results among respondents. A 2025 Bankrate poll found that 77% of Americans fear they won't receive their full benefits. Another report from the Transamerica Center for Retirement Studies showed that 71% of those not yet retired believe the system won't be available to them. To better understand the issue, U.S. workers and future beneficiaries should remember how the system works. Social Security operates under a model known as "pay-as-you-go"; this means that current workers fund the benefits of current retirees through their contributions. The money we will receive is not an individual account saved for us, but part of a continuous system. As long as there are workers contributing, there will be income to pay benefits. The problem is that the population is aging, and there are fewer workers for every retiree; This puts pressure on the system's finances and explains why reserves are declining.

The study also found that the way information is presented changes perceptions. When people see graphs illustrating only the drop in reserves, 64% believe that benefits will disappear. But when it's explained that money continues to come in each year, that percentage drops.

Even so, fear is already influencing crucial decisions, such as when to claim your Social Security payments. Many people are choosing to claim their benefits early, thinking it's better to receive something now than risk losing everything.

Claiming Social Security at age 62 reduces the lifetime monthly amount. In contrast, waiting can significantly increase payments, peaking at age 70. And while this last point may be very attractive enough to make you wait, the reality is that the timing of claiming depends on each beneficiary's situation.