Social Security Trust Fund Could Be Depleted by 2032
The Social Security trust fund could be depleted by 2032.
Social Security has been instrumental in ensuring that millions of seniors do not live in poverty. However, the program is facing a looming crisis, and a recent report from the Congressional Budget Office indicates that its day of reckoning may arrive sooner than anticipated.
The Old Age and Survivors Insurance trust fund, also known as the Social Security Trust fund, is expected to run out of money by 2032, according to the Budget and Economic Outlook for 2023 through 2033.
READ ALSO: Second SSI Payment Increase Up to $100: Claim Yours Now!
The Social Security trust fund depletion is earlier than previously estimated, and the added payments due to a Cost of Living Adjustment in 2023 only exacerbate concerns about Social Security’s future solvency.
Although Social Security will not run out of money completely, retirees may experience a significant cut in benefits. The incoming tax revenue will cover about three-quarters of the promised funds to retirees, putting a strain on those already receiving inadequate benefits. Retirees and workers need to plan accordingly, such as increasing retirement savings or budgeting for potential costs.
Congress has yet to agree on a solution to prevent significant cuts to benefits, despite various proposals, such as an increase in the retirement age, changes to how COLAs are calculated, or increased taxes to fund Social Security, MSN reported. The lack of consensus and the nearing day of reckoning raises the possibility that a solution may not be found in time.
While the Social Security trust fund may not completely run out of money, the uncertainty surrounding the program’s future demands that individuals plan for the possibility of reduced benefits. Maximizing Social Security benefits by utilizing little-known “Social Security secrets” could be a valuable strategy in ensuring retirement income. With careful planning and preparation, individuals can navigate the challenges posed by Social Security’s uncertain future.
