Social Security Reserves to Be Depleted Earlier than Previously Expected
Social Security’s trust fund will be able to pay full retirement benefits until 2033, one year earlier than predicted in 2020’s report.
At that time, the reserves for the Old-Age and Survivors Insurance Trust Fund, which pays survivor and retirement benefits, will run out and tax revenues will be able to cover 76% of scheduled benefits, according to a summary of the trustees report, which was released on Tuesday.
Additionally, the Disability Insurance Trust Fund, which covers disability payments, is currently able to provide benefits until 2057 before reserves run out. That’s eight years earlier than predicted in the 2020 report. If that happens, tax income will be able to cover 91% of benefits, according to the summary.