Social security reserves can disappear within eight years, equally with previous estimates, according to a new report. At this point, if no adjustments are made, the renovation fund for the eligibility program will be able to pay only 77 % of the benefits for the elderly.
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Is there any hope? Only if Congress gets his work together and makes some repairs, which can be done. “A large number of legislators allowed the legislators to run over control – but it does not change the fact that we have the tools that we need to address this problem and turn the ship,” The Policy Center, Yahoo said financing.
Some good news: If OASI is combined with the box that pays for disability benefits – Disability Security Fund – the Reserve Fund will not collapse until the third quarter of 2034, and three quarters in a time closer to reporting last year, and will receive 81 % of the prescribed advantages.
However, the boxes cannot be combined, at least at the present time. The joint projection of the two classes is often used to indicate the total status of the social security program.
But the situation is worse than you think. A senior government official said: “Since the report of last year, a law has been enacted that is expected to have a major impact on the financial status of social security – a law of fair social security has been enacted on January 5, 2025,” a senior government official said.
This law, the law of social security justiceIt affects more than 3 million social security beneficiaries by increasing the monthly benefits of certain types of workers, including some teachers, firefighters and police officers in many states, federal employees who include the retirement system in the civil service, and the people whose work was covered by a foreign social security system.
“Although it is not reflected in the expected year of the exhaustion of the insurance fund, the report shows that the financial expectations for social security have worsened during the past year, mainly due to the enactment of law,” Sprik said.
The Insurance Fund at Medicare Hospital will also exhaust its reserves in 2033, three years before it is expected last year, due primarily to the change in expected expenditures.
This expected shortage of Medicare – which covers 67.6 million people: 60.3 million stems between 65 years and over, and 7.3 million handicapped – to a large extent of the high cost of health care. This increase is mainly as a result of 2024 expenses higher than its students and the high expected spending of the internal patient hospital and housing services, according to the high government official.
The Social Security Program paid nearly $ 1.47 trillion of advantages last year to about 68 million Americans. For about half of the elderly, the social security provides at least half of their income, and about 1 in every 4 elderly, it represents at least 90 % of their income.
There are many factors that go beyond the new law responsible for the decrease until they were overcome for years.
It is back to consider the 75 -year -old image, the secretaries explain that social confidence funds face a lack of taxable salaries by 3.82 %, with a significant increase of 3.5 % last year, according to the first official. This is an ongoing problem – the total number of profits subject to salary tax has decreased significantly. Social Security is mostly the payment program as you-G. Taxes of salaries collected from workers are now paying benefits to the current recipients.
Part of the problem is that people live longer and that the rate of births decreases, so the proportion of workers to the beneficiaries shrinks. During the year 2024, an estimated 184 million people were receiving profits covered with social security and salary taxes paid for those profits.
Total income, including interest, to OASI and DI TRUST boxes combined $ 1.42 trillion in 2024. Nearly 91 % of these revenues, or $ 1.29 trillion, of salary taxes, $ 55 billion of social security benefits taxes, and $ 69 billion in interest gained on government bonds kept.
However, many wage growth has gone to the highest owners, which reduces the percentage of wages subject to social security, the official said. “The profits of approximately 6 % of workers increased above the maximum taxable levels much more quickly than the profits for workers 94 % of the tax -placed workers, so that the total share of the salary tax is decreased.”
Ceiling: $ 176,100.
This means that salary statements will contribute to a smaller percentage of social security revenues.
This worker is largely responsible for the increasing financial status of the insignificant funds compared to expectations in 1983 after the last major adjustments, when the funds were expected to be depleted after 2050.
“The Congress must behave,” Aarp CEO Michia-Gordan said in a statement. (American photographer: Aldrajo/Bloomberg) ·Bloomberg creative photos via Getti Ims
Certainly, other issues will be thrown into the advanced equation. One of the possibilities monitored by the trustees is the effect that may have a policy of immigration in the administration on future population growth, and therefore, future workers are pushing the social security system, including the number of foreign workers who are pushing to the program.
“The Congress must behave,” Aarp CEO Michia-Gordan said in a statement.
There are many solutions to repair the deficiency, including increasing tax statements, which currently finance the program by 12.4 %, equally among employees and employers.
Other proposals include raising the retirement age for younger workers or raising the maximum amount of the income of a person who is subject to social security. For 2025, the social security tax limit is $ 176,100.
The current medical care rate is 1.45 % for the employer and 1.45 % for the employee, or a total of 2.9 %. There is no cover for wage for medical care. Labor owners are responsible for blocking additional medical care tax by 0.9 % on individual wages paid more than $ 200,000.
“Congress has always spent to avoid the last shortage, and it will again. Allowing the immediate benefits of 15-20 % is political suicide,” said Nancy Altman, head of social security business.
In front of Congress eight years, the hour is knocked.
