Tens of millions of retirees and other Americans could see smaller monthly Social Security checks in six years if lawmakers don’t act to shore up the program’s finances, according to an annual report released Tuesday by Social Security’s trustees.
Social Security’s retirement trust fund – which helps support payments to senior citizens and survivors of deceased workers – is expected to be exhausted in late 2032, which is one quarter earlier than previously forecast, according to the trustees. At that time, payroll tax revenue and other income sources will be able to cover only 78% of benefits owed.
That means the next president could be faced with having to address Social Security’s shaky finances, which has long been considered a third rail in American politics. The issue could play a more prominent role in the 2028 presidential campaign if the projected expected insolvency date remains only a few years away.
The combined Social Security’s retirement and disability trust funds – are expected to be exhausted in 2034, the same as last year’s forecast, according to the trustees. At that time, payroll tax revenue and other income sources will be able to cover only 83% of benefits owed.
Merging the two trust funds would require an act of Congress, but the combined projection is often used to show the overall status of the program.
