1300 I Street, NW, Suite 825, Washington, DC 20005 1300 I Street, NW, Suite 825, Washington, DC 20005THE COST OF PAYING Social Security benefits in 2020 will exceed the amount of income the program collects for the first time since 1982.
The 2019 annual report from the program’s trustees, published Monday, states that the shortage would force the program to dip into its $2.9 trillion trust fund in order to cover benefits. However, the trust fund would only cover benefits through 2034 before being depleted itself.
“The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them,” the report said. “Implementing changes sooner rather than later would allow more generations to share in the needed revenue increases or reductions in scheduled benefits.”
Of Social Security’s two funds, one for retirees and one for people claiming disability, the retirement funds are expected to be paid fully through 2034 and disability funds through 2052. However, past those dates, “legislative action will be needed to prevent reserve depletion.”
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