While it has been a controversial program since it was created, Social Security helps millions of Americans. That all could be changing, though, and sooner than expected.
Countless retired Americans depend on SS to meet their needs. They were told it would be there for them when they finished working.
After all, they were taxed for decades to keep it going.
But now, some bad news is coming down the pike. Social Security benefits could run out much sooner.
And the government is blaming the 2020 crisis.
Social security funds that many Americans rely on for their retirement benefits will be depleted sooner than expected as a result of the pandemic…
The OASI Trust Fund will be able to make regular payments until 2033, one year earlier than was projected last year. After that, it will transition to only being able to pay 76% of scheduled benefits.
The DI Fund will be funded until 2057, eight years earlier than estimated last year. At that point, it will only be able to pay 91% of scheduled benefits.
The Treasury Department announced that Social Security will be depleted sooner than they anticipate.
The OASI Trust Fund will only be able to pay out 76% of benefits after 2033, just twelve years from now.
The DI fund will last a little bit longer, but it will be cutting benefits earlier than estimated.
Lawmakers had warned for years that these programs would run out of money eventually.
The way the system works, current workers are taxed to cover the benefits of those in retirement (nobody “pays into” this system).
But the sheer number of baby boomers retiring over the last few decades outpaced the number of people being taxed.
It was only a matter of time before the socialist program created by FDR would run out of money.
Now, the Treasury Department is blaming the 2020 crisis for an accelerated timeline.
It is possible the massive spending the government has done over the last year put a strain on the program.
Or the drop in taxable income prevented SS from collecting money.
What we really have to wonder is how is this possible? Joe Biden wants to spend $3.5 trillion on his socialist programs.
He wants to bankrupt the country to pay for single mom’s daycare and health care for non-Americans. But he can’t throw any money retired Americans’ way?
Seems like somebody’s priorities are out of whack.
- The Treasury Department announced Social Security will face cutbacks sooner than expected.
- They blame the 2020 crisis—and the loss of taxable income—for the change.
- Biden, meanwhile, plans to spend trillions on other people, not retired Americans.