Social Security’s retirement trust fund, which supports payments to senior citizens and survivors of deceased workers, is expected to be exhausted in late 2032, according to an annual report released by Social Security’s trustees. This is one quarter earlier than previously forecast.
Consequences of Inaction
If lawmakers don’t act to address Social Security’s shaky finances, tens of millions of retirees and other Americans could see smaller monthly Social Security checks in six years. At the time the trust fund is exhausted, payroll tax revenue and other income sources will be able to cover only 78% of benefits owed.
The combined Social Security retirement and disability trust funds are expected to be exhausted in 2034, the same as last year’s forecast. However, the issue of Social Security’s finances is likely to play a more prominent role in the 2028 presidential campaign if the projected insolvency date remains only a few years away.
Social Security’s finances have long been troubled, largely due to the nation’s aging population and increasing life expectancy. Although the program will not run out of money, as current workers are paying payroll taxes to support it, the trustees’ report highlights the need for lawmakers to take action to ensure the program’s long-term sustainability.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
