Key takeout
Social Security Benefit Award recipients will be able to see small checks within 10 years.
Funds to provide financial cushions to Social Security Benefits (OASI) and Disability Insurance (DI) Trusts (DI) Trusts (DI) are projected to run out of reserves from 2034, according to an annual report released Wednesday. At that point, the total funds are sufficient to pay 81% of the planned benefits, the report said.
Trust funds are currently running out as the Social Security Administration pays more profits than it receives in payroll tax revenue. Last year, around 68 million people received benefits from Social Security.
Trustees’ forecasts showed that funds were being discharged faster than estimated last year. Implementing the Social Security Equity Act earlier this year increased benefits to more than 2.8 million former public sector workers who were previously out of Social Security.
Many Americans are increasingly worried that they cannot rely on receiving full Social Security benefits upon retirement. Congress will need to raise taxes to reduce beneficiaries’ payments or to fill up reserves.
Congress has not addressed the recent shortage of budget debate. However, Social Security Commissioner Frank Vignano said in a statement that the trust’s financial position remains “a top priority” for President Donald Trump’s administration.
