There have been recent uncertainties about whether or not Social Security will be around for you to collect in your retirement years. There’s plenty of controversy surrounding the Social Security system, and certain trends are worrisome. To understand the concern, consider how Social Security works.

When you’re employed, you pay into the Social Security system in the form of taxes withheld from your paycheck. Through these payments you earn Social Security credits. Your employer also pays into the fund, and together your contributions are used to pay today’s Social Security recipients. When you retire, some of the money you draw upon will be contributed by tomorrow’s workers.

The amount of your Social Security benefit will depend on your earnings averaged over most of your working career and on the age you begin receiving the benefit. The earlier you decide to retire, the smaller your monthly check will be. But did you know that Social Security is likely to provide you with less than 40% of the amount you earn at the time you retire?

Now back to the key question. Will you ever see your payout from Social Security? Consider this: Census figures indicate that in the near future, when the huge population of baby boomers begins to reach retirement age, the number of retirees will grow much more quickly than will the number of workers supporting them. So money will be flowing out of the system faster than it flows in. There is concern that Social Security could run out of money as early as 2029.

Now back to the key question. Will you ever see your payout from Social Security? Consider this: Census figures indicate that in the near future, when the huge population of baby boomers begins to reach retirement age, the number of retirees will grow much more quickly than will the number of workers supporting them. So money will be flowing out of the system faster than it flows in. There is concern that Social Security could run out of money as early as 2029.

Whether or not Social Security continues to provide benefits for retirees remains to be seen. However, whatever happens with Social Security, your future financial well-being is in your own hands. Used effectively, your company’s retirement plan is still the best opportunity you have to provide adequate funds for your retirement years.