SSI/SSDI Benefits for everyone could be reduced by almost 25% when funds run out
Social Security has had a surplus set aside for emergencies like the Great Recession, and it is the current hot topic with more people depending on Social Security since the Great Depression. Everyone is wondering the same thing: when will it run out?
After the debates about SSA’s funds have been going on for almost a decade now with rumors spreading around, the trustees have released the answer. In a recent meeting to project the next 20 years’ funds, the trustees released a report with the numbers: the SSA overall surplus fund will dry out in 2034.
This means that for retirees, the surplus will dry out in 2034.
For the disabled, the funds will be reduced earlier: 2023.
What this means for you is when you retire or start collecting disability after 2023, you won’t get the full amount from SSA. Instead, you’ll get only 79%.
For example, if you were originally going to get $2000 per month from SSA, after 2023 you’ll get only $1580 per month. Social Security will not disappear, only the benefits will be reduced.
This projection of 2034 is an improvement over the previous years’ projections due to the Affordable Care Act (Obamacare.) Obamacare reduced the government’s spending on expensive prescription medication. By doing this, there is enough money leftover to stretch out SSA’s budget for a little longer.
Social Security has always depended on the working people’s income taxes to fund the program; any time there is an increase in income tax, more funding goes to Social Security. Any time the income taxes are cut, there is less funding for SSA.
Official SSA Trustees Report