The annual report released today by the Social Security and Medicare trustees reported news that won’t be surprising to many Americans, especially younger ones: Social Security won’t be able to pay full benefits by 2034, a year earlier than expected due to the pandemic.
Social Security administrators will be forced to cut benefits by 2034 if Washington doesn’t address the program’s long-term funding shortfall, begging the question: why is Congress now considering piling on $4.6 trillion in new government spending at this terrible time of crisis?
According to the report:
Based on our best estimates, the 2021 reports show:
- The Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement and survivors benefits, will be able to pay scheduled benefits on a timely basis until 2033, one year earlier than reported last year. At that time, the fund’s reserves will become depleted and continuing tax income will be sufficient to pay 76 percent of scheduled benefits.
- The Disability Insurance (DI) Trust Fund, which pays disability benefits, will be able to pay scheduled benefits until 2057, 8 years earlier than in last year’s report. At that time, the fund’s reserves will become depleted and continuing tax income will be sufficient to pay 91 percent of scheduled benefits.
This is troubling and unfair to vulnerable seniors who will rely on Social Security during their retirement. It’s especially hard right now given rising inflation that eats into the savings of seniors living on fixed income.
Americans deserve better than leaders who continue to squander our futures.