Social security head honchos have sent a terrifying warning about the exact date the US is set to run out of cash.
Talk of the economy is certainly hot right now considering President Donald Trump’s approval ratings on the matter have declined after many pointed to it as being a strong point from the Republican president’s first term.
A new poll released by Quinnipiac University earlier this month found Trump ranked lowly on how he is managing the economy, on top of just 38 percent approving of the president’s stance on trade.
So, money is at the forefront of everyone’s minds, and a recent report detailed by Social Security bosses is only going to add to concerns.
The report found that Social Security is on track to deplete its trust funds by 2034, which worryingly is one year sooner than a previous forecast.
Social Security bosses have sent a terrifying money warning (Getty Stock Photo)
The Social Security Board of Trustees’ annual report, which was released on Wednesday (June 18), put down the forecast due to rapidly increasing costs from the Social Security Fairness Act, which has increased benefits for millions of retirees.
On top of that, it’s believed OASI, or Old-Age and Survivors Insurance, will run out in 2033, alongside the trust funds that will follow a year later.
It’s a stark contrast from last year’s report that said the program would need to cut benefits starting in 2035, though that decision seems to have been accelerated.
Such a move is set to impact Social Security’s 70 million beneficiaries.
Frank Bisignano, who is the commissioner of Social Security, said in a statement: “Congress, along with the Social Security Administration and others committed to eliminating waste, fraud and abuse, must work together to protect and strengthen the trust funds for the millions of Americans who rely on it — now and in the future — for a secure retirement or in the event of a disability.”
Frank Bisignano has urged Congress to act now (Maansi Srivastava for the Washington Post)
While there is a chance trust funds are depleted in the coming years, CBS News reports that funds wont just immediately disappear.
Instead, the report states that those involved with Social Security would see a cut between 19 to 23 percent to their benefits.
Nonetheless, there is hope from beneficiaries that it never reaches that stage as calls for Congress to step in and make changes to how the program is funded is louder than ever.
AARP CEO Myechia Minter-Jordan said: “Congress must act to protect and strengthen the Social Security that Americans have earned and paid into throughout their working lives.
“More than 69 million Americans rely on Social Security today and as America’s population ages, the stability of this vital program only becomes more important.”
