Running Out Of Money! What You MUST Know (Social Security)

Donald Trump’s payroll tax cuts could spell the end of Social Security

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The average social security paycheck was around $1,470 as of 2019. But did you know if we were to get rid of social security today, 48% or nearly 1 out of every 2 people over the age of 65 would be considered living below poverty?

If you’ve been keeping up with the Cares Act, you might remember that President Donald Trump said this “We’re not doing anything without a payroll tax cut”.

This means he wants to include payroll tax cuts for our corporations in Phase 4 in order to incentivize businesses to hire us to come back to work which makes sense, the more money businesses can keep, the more likely they’ll use it to pay and hire back their employees.

However, guess which program gets the majority of it’s money from Payroll taxes? Social Security. This means there’s a problem because as of the calculations of today, social security is set to run out around 15 years from now but there’s a few things that we need to pay attention to that are about to speed that up.

Social Security was originally invented out of a need after the Great Depression of 1929 when millions of people were left with no income, no savings, and no job – not unlike what we’re seeing today. The program was created to help out retirees and disabled people in order to supplement some of their income. This program was supposed to be a TEMPORARY relief that was never meant to replace ALL of people’s incomes forever, but only part of it temporarily. Eventually social security became a permanent controversy of the US.

Today, you and I pay into this program REGARDLESS of whether or not we choose to. If you’re employed and have a job, you pay 6.2% of your income and your employer then matches that 6.2% for a grand total of 12.4% per year in taxes which is why it literally PAYS to have a job. If you’re self employed bum like I am, I get to pay the 12.4% all by myself, because there’s no one to match my contribution. Luckily, this 12.4% has a limit of $137,700 for the year as of 2020.

The way this program is funded is that all of the social security money goes into one giant pile of money like in a high stakes poker game where everyone chips in. That money is then distributed back to us at retirement age in proportion to the average of 35 of our highest earning working years.

And for each dollar we pay in social security taxes, about 85 cents of it goes toward retirees, and the other 15 cents goes towards people with disabilities.

President Donald Trump and his administration have wanted permanent tax cuts to payroll as part of the CARES Act for Phase 4. That means companies could get to keep that 6.2% that they pay for employing us. But, because of the illness, many people aren’t working therefore the social security program is getting less money.

To make matters worse, in 2019, the program paid one trillion 47 billion dollars out as benefits, but it only received 944.5 billion, so the program is paying out more money than it is collecting.

Either we eliminate some of the benefit that we pay to seniors and disabled people, or we raise the payroll taxes meaning everybody pays more in taxes which, or the most popular solution is we raise the retirement age because people are living longer.

Even if social security runs out of money, remember, it still has enough to pay around 79% of the money that we’re owed in retirement, all the way until 2090. So even though the media tries to scare you and say that we’ve run out of money, we will technically still be paid, just not as much.

If you choose to start withdrawing at the age of 62, you will lock in your rate for life – and receive only 70% of the amount you are owed because you chose to withdraw earlier – but contrary to what people think, that income does NOT go up as you get older – it’s locked in once you start collecting. If you can wait till 70 though, you’ll get 132% of social security. (to check your benefits)

*Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.


What do you think?


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  1. Technically the government owes the Social Security fund an estimated $2.9 trillion, money that has been used and not repaid to the fund. The money is legally held in a special type of bond that by law cannot be used for any other purpose other than to put the money back into the fund. But the government, thrifty group that they are, didn’t cash the bonds in, they simply borrowed the money and promise to pat it back.

  2. Hey Andrei, i do understand a lot of your viewers are American and maybe Americans do distrust their government. That's not the case where i live here in New Zealand. Here we have a universal retirement income which is very generous and not means tested. Also everyone gets the full amount from age 65 even if you are still working full time.

  3. As someone who is older than you and most of the people in the comment section, and far closer to retirement, I'll just say that Social Security isn't something I'm counting on and never have. I've been self employed my entire life and though I've paid out to SS, I've never planned my financial future expecting it to be around or to pay me what I paid into it. If it is and it does, bonus.

  4. What about the numbers on the back to pay me CASH! YES CASH. When we are born there is money put on our card, about 5hundred thousand Each. Yes. And if you knew how, you coulda bought a home…. Explain why they put the brakes on this

  5. This is good info, but should more time on taking SS at 62 instead of 67. Why? If you take benefits at 62 at my rate of 1,800 a month. I will make 21,600 a year times five years (67 year old) equals to 108,000. It will take an average of 11 years to catch up to my rate at 62 if I take at 67 old. Take benefits now because your right the government is going to increase the age to receive.

  6. Use your brain everyone lies the believe what they say but there wrong believe nobody I never thought about the colors of the cards it was odd this guy would take the king and put it on the top didn't make sense till the question we would not believe what we don't know and the little we know is wrong and the fee that can see and hear we are outcast segregation through truth your world is deception beyond belief

  7. When the government started stealing money from the SS pot, and moved
    funding to the general fund, they lost the right to say that SS is going bankrupt.
    Under the original system the average worker could cash out SS at about 200K
    we he retired. Since the lawmakers, instead of raising taxes and face loosing an
    election, stole money from the SS Fund to pay current bills each and every year,
    that money is not there, it was stolen. The government is obligated to pay SS first
    from the general fund, since they moved it out of its own fund.
    SS will never go broke. Don't believe it for a minute. The government would
    never give up the right to charge you SS on each and every payroll check.
    It is a rouse to keep you happy when you are not getting what increase you
    deserve, and then spend what they did not give you on something else.
    Basically, this is more theft, and is a dishonor to the criminal lawmakers.

  8. What they need to do is quit overpaying some people who can get a new car every year or less. Then you have those sports players and other people making millions and billions, make them take less and just bite the bullet so you can get that money into the hands of people who most need it

  9. HTF are you 58???! That alone is better "magic" than the card trick!
    I jumped onto my SS at 62 for several reasons, number 1 of which was the odds that I was going to live much beyond 70, and even if I had, normal deflation would have most likely eaten up most of the market value by then, so it would pan-out to about the same as I'm getting now. I just went with a semi-gut feeling bc the math is too complicated for most of us.

    Anyhow, nice vid! I had to stop it when you made your eyes bulge out, twice. LMFAO !!

    In fact, still chuckling…….. Best laugh I've had all week !

    Edit: 😂🤣 <—— Me right now.

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