Social Security now expected to run short on funds in 2035

Report Issue

Please complete the required fields.

Your Name

Email

Reason (required)
This post contains broken linksPost has incorrect informationPost has spamCopyright IssueOther

Description

Submit

The trust funds the Social Security Administration relies on to pay benefits are now projected to run out in 2035, one year later than previously projected, according to the annual trustees’ report released on Monday.

At the projected depletion date, 83% of benefits will be payable if Congress does not act sooner to prevent that shortfall.

The Social Security trustees credited the slightly improved outlook to more people contributing to the program amid a strong economy, low unemployment and higher job and wage growth. Last year, the trustees projected the program’s funds would last through 2034, when 80% of benefits would be payable.

“This year’s report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035,” Social Security Commissioner Martin O’Malley said in a statement.

O’Malley, who was sworn in to lead the agency in December, also urged Congress to extend the trust fund’s solvency “as it did in the past on a bipartisan basis.”

“Eliminating the shortfall will bring peace of mind to Social Security’s 70 million-plus beneficiaries, the 180 million workers and their families who contribute to Social Security, and the entire nation,” O’Malley said.