What Would Happen to the Money You Paid Into Social Security If It Ended?

Will Social Security come to an end? Chatter about this long-standing question gained more attention as the Department of Government Efficiency (DOGE) was created with a mandate to significantly reduce government spending.

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These fears appear to be overblown — while Social Security is facing funding difficulties, it’s unlikely to be eliminated entirely — but in a hypothetical situation, what would happen if Social Security ended? More specifically, would you receive your contributions back, or would you not see any of the money you put into the program?

Experts detail what could happen if Social Security closed its doors for good.

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The Social Security Administration Doesn’t Have Your Money

If the Social Security program closed for good, it’s highly unlikely that you would receive the money that you put into the system.

Shawn DuBravac, Ph.D., CEO and president at Avrio Institute, explained, “Social Security is not a personal savings account; it is a pay-as-you-go system. The money contributed today goes to current beneficiaries. Future benefits will depend on how the program is wound down.”

In other words, the money current workers are paying into the system via taxes is being paid out to current retirees, not being held for the future. When those current workers retire, their Social Security benefits will be paid — at least in part — by the workers of that time.

“In most scenarios, contributions would not be returned dollar-for-dollar,” DuBravac said. “Congress [would] need to pass legislation outlining any transitional benefits, but full reimbursement is highly unlikely.”

While the government can adjust Social Security payouts if the program winds down, people who are not yet eligible for Social Security would likely end up holding the bag.

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Who Benefits the Most From Social Security?

Social Security’s premise is that you receive steady payouts after you retire. You only receive those payouts if you put money into the system. While anyone who uses Social Security to fund their retirement will benefit, there are clear winners.

DuBravac explained that the return on investment (ROI) depends on your contributions, lifespan and whether you’re married, divorced or single.

“Lower-income earners tend to get a higher ROI due to Social Security’s progressive benefit formula,” he explained. “Social Security is designed to help the most vulnerable retirees who have limited savings, are disabled or are the surviving spouse of a worker.

“For higher-income Americans, the ROI would be lower, but Social Security still provides a stable, inflation-adjusted income stream,” he added.

Note that that doesn’t mean lower-income workers will get bigger Social Security checks; they just get more back per dollar put in, because there is a minimum benefit.

The lower-income beneficiaries would be hurt the most if the Social Security program came to a close. Since the program is progressive in nature, ending it would benefit high-income Americans the most.

Ideas for Preserving Social Security

Even without DOGE, the Social Security program’s solvency has been in question. The Social Security Trustees Report projected that the Social Security Trust Fund will become insolvent by 2033, based on data from 2024. That means the government may have to reduce benefits in the future if it doesn’t change course.

“There are many bipartisan ideas that have been floated to preserve Social Security, but also to evolve the program,” DuBravac said. “Raising the retirement age, modifying cost-of-living adjustments, introducing means testing and lifting the payroll tax cap are all ideas that have been discussed. Small changes can significantly extend Social Security’s solvency.”

However, the right solution involves quite a balancing act. DuBravac also explained that any further declines in fertility rates could make it even more difficult to reach an effective balance.

“A solution should aim to protect retirees and retirement without placing an excessive burden on future workers,” he said.

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