The Social Security retirement trust fund will be exhausted in 2032, earlier than previously anticipated, the program’s trustees projected on Tuesday, meaning that senior citizens would face a cut in their benefits at that time unless Congress acts.The trustees’ report highlights the long-term problems facing entitlement programs on which tens of millions of people rely. Workers can claim Social Security retirement beginning at age 62. Benefits increase the longer workers wait to claim them, but they cap out at a retirement age of 70.
The trustees predicted that the Old Age and Survivors Insurance trust fund would only be enough to pay 78% of scheduled benefits in the fourth quarter of 2032.
The OASI trust fund, combined with the disability insurance trust fund, is projected to be able to pay out benefits until 2034, after which there will only be enough to pay out 83% of benefits, the trustees project.
“To protect the promise of Social Security, it is important for lawmakers and the Social Security Administration to work together to ensure the trust funds continue to provide financial stability now and for future generations,” Social Security Commissioner Frank Bisignano said.
The federal government’s finances are increasingly in question.
