Social Security benefits: What young people should know

( NewsNation ) — When Franklin Roosevelt signed the bill that created Social Security , he said the objective of the program was to provide “some safeguard” against “the hazards and vicissitudes of life.”

What he did not imagine was that, for millions today, Social Security has become a replacement for pensions, retirement savings, disability or life insurance.

But, with much more money going out than coming in, Social Security’s future viability has become something of a reverse legend for young workers. Many say they don’t believe the program will be around when they retire, or that its benefits won’t make much of a difference.

And those fears may be justified when looking at the program’s recent history:

• In 1983, Congress raised the full retirement age to 67
• Social Security expenses have been outpacing revenue for 14 years
• At the current depletion rate, the program’s reserves will be gone in 2033
• If that happens, benefits will have to be reduced by 21%
• Some Republicans want to raise the full retirement age to 69

“The largest component of the federal budget is on an unsustainable path. Without reform, the Social Security Trust Funds will soon be depleted and unable to pay full benefits,” said the Peter G. Peterson Foundation in an analysis of the latest report from the Social Security Trustees.

But the Social Security Administration (SSA) continually tries to remind people of all ages that it pays benefit to more than just retirees.

“Social Security protects young workers,” said a fact sheet released by the SSA in September. It notes that, while retired workers and dependents account for 79% of the money that SSA pays each month, the rest goes to disabled workers and the survivors (children and spouses) of workers who have died.

“About 90% of persons aged 21-64 … can count on monthly cash benefits if they suffer a severe and prolonged disability,” the fact sheet said. A separate SSA release warned that becoming disabled during one’s work life is not as remote as young people might believe.

“Studies show that a 20-year-old worker has a 3-in-10 chance of qualifying for disability benefits before reaching retirement age,” the SSA said.

It also states that nearly every worker under 50, should they die, has earned enough to cover their children to age 18 and spouses caring for kids under age 16.

“More than two million children and surviving spouses caring for children now receive survivor benefits from a deceased worker,” said the SSA.

For the latest news, weather, sports, and streaming video, head to NewsNation.