Social Security

President Joe Biden inherited an underfunded, overextended Social Security program that was already crowded with aging baby boomers as dwindling funds dried ...

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A new report predicts the government will be able to pay out full Social Security benefits for longer due to the strong economic recovery.

When the funds are depleted, benefits will be cut. Congress could act to address these funding shortfalls before the programs are insolvent. At the same time, lower birth rates mean there will be a smaller supply of workers and thus less tax revenue to fund the programs. In the coming years, these programs face major challenges because more baby boomers will retire, drastically shifting the ratio of workers to beneficiaries. The agency's funds are now predicted to run out of money in 2035 — one year later than expected. They are expected to fully pay out for the next 75 years at least.

A stronger-than-expected economic recovery from the pandemic has pushed back the go-broke dates for Social Security and Medicare, but officials warn that ...

The 2022 report analyzes and summarizes the latest actuarial status of the trust funds that support Social Security's retirement and disability programs, as ...

That’s because there are two sources of funding for Social Security’s benefits: the Social Security trust funds and the FICA taxes paid by workers each year. In the 2022 trustees’ report, the actuaries project that the combined retirement, survivors, and disability trust funds will be exhausted in the year 2035, one year later than reported in their 2021 report. Every year, the trustees’ report estimates the future year in which the Social Security trust funds will be exhausted. Each year, the trustees’ Report describes changes in the program that could restore long-term actuarial balance to the system. They also show that the HI fund will be exhausted in the year 2028, two years later than reported in their 2021 report. It’s time for the annual ritual of understanding and interpreting the Social Security trustees’ report.

Social Security's trustees have released their 2022 report. If you're to be collecting Social Security in 2034 or after, here's what that will likely mean.

That’s a promise by the politicians who set Social Security’s funding and benefits on their current scheme. Under the intermediate assumptions, the projected hypothetical combined OASI and DI Trust Fund asset reserves become depleted and unable to pay scheduled benefits in full on a timely basis in 2035. Instead of going broke in 2033, Social Security’s Old Age and Survivors’ Insurance (OASI) trust fund will run out of money in 2034.

Social Security provides monthly benefits to millions of retired seniors. And some of those seniors depend on the program for the bulk of their income.

Meanwhile, the Social Security Trustees recently released their 2022 report, and it projects that the program's trust funds will run out of money in 2035. In the coming years, Social Security expects to owe more in benefits than it collects in revenue, due largely to an anticipated mass exodus of baby boomers from the workforce. Now this isn't to say that today's seniors can't do anything to shore up their finances in anticipation of future benefit cuts. If that worker were to put $300 a month into a retirement plan and invest it at an average annual 8% return (which is a bit below the stock market's average), their nest egg would be worth about $408,000. Social Security provides monthly benefits to millions of retired seniors. That means seniors who live mostly on Social Security are losing buying power even at a time when they're sitting on a higher raise.