Combined Social Security Trust Fund only 13 years away from insolvency, trustees report
Created by FDR's New Deal, the Old-Age and Survivors Insurance (OASI) Trust Fund — the nation's largest social welfare program — will deplete its reserves by 2033, while the Social Security Disability Insurance (SSDI) trust fund will become insolvent by 2057. These two funds combined are expected to exhaust their reserves by 2034, when individuals currently age 54 will reach their full retirement age. Once the Social Security Trust Fund becomes insolvent, all beneficiaries would see their benefits cut by 22%, unless Congress implemented policy changes before then.
"Social Security cannot guarantee full benefits to current retirees under current law," warns fiscal policy watchdog group the Committee for a Responsible Federal Budget.
As of Aug. 31, 2020, the OASDI program provided payments to roughly 65 million people, having substantially expanded beyond providing retirement benefits to those who paid into the system as it was first designed to do. In 2020, 49 million retired workers and dependents of retired workers received Social Security benefits, in addition to 6 million survivors of deceased workers, and 10 million disabled workers.
Based on 2020 data, the trustees warned that Social Security's total cost "is projected to be higher than its total income in 2021 and all later years," running cash deficits of $2.4 trillion over the next decade.
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