- Full Social Security benefits are expected to run out in 2035, according to program administrators.
- This is one year later than expected, at which point 83% of the benefits will be available.
- Still, retirees who rely on Social Security are concerned about the program’s uncertain fate.
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Full coverage of these benefits may not last long, as more Americans rely solely on Social Security for fear of not being prepared for retirement.
The latest Social Security and Medicare Board of Directors report found that the program will only be able to pay full benefits for about the next 11 years. This is slower than the latest predictions.
William Arnone, CEO of the nonpartisan National Academy of Social Insurance, told BI that “there is some breathing room, but not enough to change the conclusion that Congress must act.” Told.
According to the report, the Old Age and Survivors Insurance Trust Fund is one of the major funds. constitute social security benefits — Full benefits will be available until 2033. Combined with the Disability Insurance Fund, his benefits would begin to “deplete” in 2035 unless Congress acts.
This does not mean that Social Security benefits will be completely depleted by 2035. Instead, the Trustees have increased by 83% since that year. benefits will be available.
“This year’s report is good news for the millions of Americans who rely on Social Security, including about 50% of seniors for whom Social Security is the difference between poverty and a life of dignity. “All benefit reduction events are ignored and postponed from 2034 to 2035,” Social Security Secretary Martin O’Malley said in a statement.
The report credits the longer time due to the strong economy.
“Thanks to strong economic policies that have resulted in impressive wage increases, historic job creation, and stable and low unemployment rates, more people are contributing to Social Security. “Guarantee can and will continue to pay benefits,” he said.
Still, Social Security’s uncertain fate worries many Americans, especially those nearing retirement, who worry that changes to the program could put their financial security at risk. For example, one 63-year-old man previously told BI that “everyone my age is a little worried right now” given the impending retirement crisis that Social Security cannot solve.
“It’s simple math,” she said. “You’re talking about retirement, but you need at least about $4,000 a month to cover living expenses. Social Security alone won’t cover that.”
There is a growing need to strengthen federal benefits. According to the Census Bureau’s Population Survey, just over half of Americans age 65 and older have an annual income of less than $30,000. Meanwhile, just under 80% of the income a typical retiree actually receives comes from Social Security.
The latest estimates for Social Security come as the U.S. economy prepares for a new wave of “peak boomer” retirees.Lifetime Income Alliance Retirement Income Research Institute found More than 30 million baby boomers will begin reaching retirement age of 65 this year. This is the largest group of retiring baby boomers ever, and the analysis suggests that many will eventually have to rely on Social Security benefits to survive.
Meanwhile, lawmakers on both sides of the aisle vowed to protect Social Security.Some Democratic politicians accused Republican lawmakers are putting the program at risk through proposals to raise the age at which Americans can receive federal benefits, but Republican leaders have been adamant that they are not pursuing any proposals to cut the program. ing.
Republican Rep. Kevin Hahn, chairman of the Republican Study Committee, said in his committee’s 2025 budget proposal: “Could not be more clear: Retirement benefits for seniors at or near retirement. “We have no intention of adjusting or delaying it.”
Feeling financially unprepared for retirement or worried that your Social Security will run out? Contact these reporters at: jkaplan@businessinsider.com and asheffey@businessinsider.com.