The Old Age and Survivors Insurance Trust Fund, which provides benefits to 49 million beneficiaries, will be unable to pay benefits as scheduled by 2035.
The trust fund is on course for insolvency next year. This deadline is a focus of policymakers and a source of concern for beneficiaries and their families.
If the next president serves two terms without addressing Social Security, the Disability Insurance Trust Fund would be exhausted by the time he or she leaves office.
Policymakers must address the problems facing Disability Insurance in a responsible manner that accounts for the challenges facing Social Security as a whole.
Failure to secure the finances of Social Security would place the greatest burden on individuals who can least afford it.
The report emphasizes that before the end of 2016, just 18 months from now, the DI Trust Fund will be unable to pay beneficiaries the full amount due them.
As Baby Boomers move out of the labor force and into retirement, the ratio of workers to beneficiaries will drop to roughly 2:1 by 2034.
The need for action is an opportunity to ensure not only that benefits are preserved for current beneficiaries but also to modernize elements of Social Security.
This morning, the trustees of Social Security released their annual report, which includes an assessment of the program’s financial health. The Social Security actuaries estimate that under current law, the Old-Age and Survivor’s Insurance (OASI) Trust Fund will be depleted in 2034 (one year earlier than projected last year), while the Disability Insurance (DI) Trust Fund will be depleted in late 2016, unchanged from last year.