In just 10 years, Social Security recipients could face a significant reduction in their monthly benefits as funds for the program are predicted to run out.
Currently, approximately 70 million Americans rely on Social Security for their income. The average monthly benefit has recently been boosted by $140 to $1,827 due to a cost-of-living adjustment increase of 8.7 percent, which is a result of high inflation in the past year.
However, those who are already struggling to make ends meet could be in for an even tougher blow in the near future. The Congressional Budget Office is projecting that the Social Security Administration (SSA) will no longer be able to pay full benefits by 2033. This is due to a gap between the outlays and revenue received through the Old Age and Survivors Insurance Trust Fund, which supports retired workers. The fund is projected to run out by 2033, based on the current regulations. The same thing also applies to the Disability Insurance Trust Fund, which is projected to run out in 2048.
If the trend continues, it would result in Social Security benefits shrinking by 23 percent by 2034 and rising to 35 percent by 2096. The only way to prevent this from happening is for Congress to take action. However, it is unclear if this will happen now or in the near future, as the Senate and House of Representatives are controlled by two different parties.
READ ALSO: Social Security Update: Automatic Payments Between $1,827 to $4,555 Will Start To Hit Your Account
Despite this uncertain future, one thing is for sure: Social Security recipients will continue to receive their full benefits for at least another 10 years. Recipients with birthdays falling between the 21st and 31st will receive their money deposited on Wednesday, January 25th. The full schedule for the next month is available for those who want to know when they will receive their benefits.
It’s important for people to be aware of the potential changes that could occur to Social Security in the future and to plan accordingly. There are ways to get SSDI benefits quicker and to make the most of the benefits you have while they are available. It’s also important to keep an eye on the upcoming schedule and any rule changes that could impact millions of Americans under the $1.7 trillion package.
READ ALSO: Social Security 2023: How Do Recent Changes Affect Recipients?
