By ERNEST RICHARDS
Social Security Funded Until 2034
The Social Security Board of Trustees released its annual report
on the current and projected financial status of the Old-Age, Survivors,
and Disability Insurance (OASDI) Trust Funds.
If Congress does not act, the Social Security Trust Fund will become depleted in 2034. At that time, only 77 percent of benefits promised to retirees are expected to be payable. The trust fund for the disabled is projected to be depleted by 2032, but at that point will be able to pay 96 percent of scheduled benefits.
At these future dates, Social Security will still be able to receive monies from payroll taxes, but it won’t be enough to cover all the program costs – as the trust fund balances decline, the amount of interest generated by investments will
drop as well.
The reasons are very complicated but the two biggest factors include the
fact that people are living longer and the massive baby boomer generation
Some of the ideas discussed to solve the problem include extending
the retirement age, boosting the rate on payroll taxes, reducing benefits
for wealthier retirees and lifting the current income cap on Social Security
Most agree the sooner Congress acts, the less painful any cuts or additional taxes will be.