(ConservativeFreePress.com) – Social Security recipients might see a 20 percent cut on their benefits as soon as 2034, according to the annual trustees’ report published by the Treasury.
The trustees have claimed that the Social Security Trust fund is going to begin seeing its money run out by 2034. This is one year earlier than the initial projections. This revision comes at a time when near-term economic growth is also expected to slow down, with both gross domestic product and labor productivity having been revised down by about three percent since the initial time period projection.
Social Security includes two separate programs, one used by retirees, and one that provides disability benefits. The Old Age and Survivors Insurance and Disability Insurance (OASI) trust fund specifically is expected to run out in 2033, with 77 percent of benefits payable at that time.
This revised depletion date came after the Social Security trust funds marked a $22 billion decline in 2022. The program costs are also expected to be higher than the annual income in 2023, which is also projected to be the case throughout the 75-year projection period, according to a statement by the Social Security Administration (SSA).
Acting Commissioner of Social Security, Kilolo Kijakazi claimed that Trustees continue to recommend that Congress take action to address the shortcomings of the program and put out necessary changes.
Copyright 2023, ConservativeFreePress.com
