As Social Security turns 90, a New York Times article attempted to debunk six myths about the program. However, a fiscal watchdog reveals that five of those “myths” are in fact accurate, and only one claim truly qualifies as a myth. Here’s a clear, fact-based breakdown of what’s really true—and what’s not.
1. Myth: Social Security Is “Running Out of Money”
- Reality: The trust fund is projected to be depleted by 2033, setting the stage for a 24% across-the-board benefit cut unless Congress acts.
- Calling this a myth ignores the very real impending insolvency facing retirees.
2. Myth: Aging Boomers Aren’t a Problem
- Reality: The retiree population has surged, rising to cover nearly 18% of Americans, up from much lower levels decades ago. This shift is a major driver of rising Social Security costs.
- While the aging trend was anticipated, ignoring it for over 4 decades doesn’t invalidate its impact.
3. Myth: Social Security Isn’t Contributing to the Deficit
- Reality: Although funded primarily by payroll taxes, the program has run deficits of $1.4 trillion since 2010, with a $250 billion gap this year alone, adding noticeably to the federal deficit.
4. Myth: The Trust Fund Is More Than Just I.O.U.s
- Reality: Trust fund bonds are not backed by real assets or traded publicly—they serve as promises from the government, akin to I.O.U.s. They represent an obligation, not tangible holdings.
5. Myth: Cutting Benefits Now Isn’t Helpful
- Reality: While immediate cuts aren’t the only solution, acting sooner allows for smaller adjustments and better planning. Delaying reforms only raises the necessary scale of future reductions.
6. One Myth That Is Actually a Myth
The lone myth in the NYT list? “Waste, fraud, and abuse abound.” In fact, Social Security has a less than 1% improper payment rate, one of the lowest error rates across federal programs.
Summary: Myths vs. Realities
| Alleged Myth | Reality |
|---|---|
| Trust fund isn’t running out | Scheduled to deplete by 2033; benefits could be cut by roughly 24% |
| Aging boomers aren’t the issue | Population aging is a key structural driver of rising costs |
| Social Security doesn’t add to the deficit | Has generated $1.4 trillion in cash shortfalls since 2010; adds ~$250B this year |
| Trust fund isn’t just I.O.U.s | Trust fund bonds are promises—not backed by assets—making them functionally like I.O.U.s |
| Cutting benefits now isn’t beneficial | Early action allows more manageable adjustments; delay makes solutions more painful |
| Fraud is rampant in Social Security | Fraud is very low—under 1% improper payments—making this claim the only genuine myth |
The New York Times tried to clear the air on Social Security myths—but five of the six “myths” are actually grounded in truth.
From the looming insolvency and aging demographic pressures to budget deficits and trust fund mechanics, Social Security faces real and pressing challenges.
The only claim that truly fails is the one about widespread fraud. With such clarity, the path forward demands honest conversation, timely intervention, and responsible reform to preserve retirement security for future generations.
FAQs
If five of the six “myths” are true, what does that mean for retirees?
It means the looming insolvency, age-driven costs, and deficit impact are real and require urgent policy reforms to protect future benefits.
Why is the claim about fraud a myth?
Because Social Security has an exceptionally low error rate—less than 1%—making fraud overwhelming almost entirely inaccurate.
Why do early reforms matter?
Because early adjustments—whether through minor benefit tweaks or revenue changes—are significantly smaller and less disruptive when phased in over time.
