It’s long been thought that Social Security trust funds would be good through 2035.
But is this too generous of an estimate? Recent reports say this is off by a couple of years. If these projections are to be believed, the year of insolvency is now 2033.
If this is true, then we have only a decade before benefits may be reduced unless drastic action is taken. What brought on this shift, and is there a way to set it right before it’s too late?
What’s Caused This Worrying Change to the Program?
There are many reasons why Social Security trust funds are currently draining at a rapid rate.
Never before have there been so many retirees or soon-to-be retirees compared to active members of the workforce.
Even though seniors have been shorted and not given the fair Cost-of-Living Adjustments (COLAs) they deserve, the program is still lagging behind. An increase in payroll taxes could make up for this, but even that could fail to completely plug the proverbial leak in this important program.
It should be noted that this isn’t the first time this has happened. Back in 1977, the program had its first recognized financial collapse. President Carter and Congress used a combination of tax increases and benefit reductions to manage the issue. While they claimed this was a long-term solution, by the next decade the program was struggling again.
Could history repeat itself? Maybe — but we must ensure that those who’ve already paid in are treated fairly.
Will You Help Us Protect Social Security Trust Funds?
Social Security is something seniors rely on. Especially with many seniors holding onto debt, and with inflation sticking around, it’s important that benefits are paid out and adjusted fairly.
Our Social Security Lock-Box Petition aims to secure the funds retirees have earned. If you support our cause, sign our petition and bookmark this page.