Social Security checks may not go out NOVEMBER or after.
ETA for those who don't believe it:
CHICAGO (Reuters) - President Barack Obama warned last week that Social Security benefits might not go out "on time" if Congress does not raise the debt ceiling.
Should seniors and disabled American really be worried about their benefits if the U.S. government runs out of borrowing capacity later this month?
The answer is yes - but only if the Obama administration insists on making Social Security a pawn in the debt ceiling battle. And that's a move it has no business making.
Social Security is a stand-alone program with its own dedicated revenue stream: Workers and employers pay a combined 12.4 percent of employees' payroll. It was designed to be a "pay as you go" program, with taxes on today's workers funding current payouts to retired and disabled workers and their dependents. Those funds can't be used for anything other than benefits.
Social Security currently has a surplus of $2.7 trillion. This year it is on track to take in $38.8 billion more in revenue than it will pay out, according to the forecast of the program's trustees. These funds sit in something called the Social Security Trust Fund (SSTF).
While SSTF funds can be used only for Social Security, the fund operates in a way that could leave it vulnerable in the event of a government default.