(AmericanProsperity.com) – By 2021, Social Security will exceed total income for the first time in 40 years. According to a report by the Social Security Board of Trustees, it’s expected that in a worst-case scenario, reserves will be depleted by 2035. The estimates do not account for the massive hit to the economy due to COVID-19, as tax revenues will be significantly impacted for 2020.
Fiscal warning cloud. Cost of Social Security will exceed program's income in 2021, board of trustees warns https://t.co/9WyK86Ahyn
— John Solomon (@jsolomonReports) April 22, 2020
If things keep going the way they are, in 2035, for every $1 in benefits paid, the fund will receive 79 cents in tax revenues. With the reserves depleted at that time, the Social Security fund will only be able to pay out 76% of scheduled benefits unless Congress shores up the program.
The news wasn’t all bad, however. The projections for the trust fund that supports Social Security Disability Payments saw its expected depletion date extended by 13 years. This is the second year in a row it has seen a dramatic increase.
In the trustee’s report, the board implored Congress to address the financial challenges soon. By doing so, it will allow Congress to consider more options to solve the problem. In addition, if difficult decisions have to be made, it will also give the public “adequate time to prepare.”
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