When Will Social Security Run Out of Money? Latest Prediction Offers Good News
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Here's a rare piece of good retirement news: The Social Security program is now expected to be able to pay full benefits until 2035, which is a year later than previously thought.
According to a new report from the Social Security Board of Trustees, which oversees the finances of the program, there is just over a decade remaining until Social Security’s combined trust fund reserves are depleted (unless Congress addresses the funding issue).
A 12.4% payroll tax split by employees and employers currently funds the Social Security program, but it's not enough to fully cover benefits for the roughly 70 million beneficiaries. Reserves generated from past surpluses help cover the difference. If and when these reserves are exhausted, only 83% of Social Security benefits will be paid to recipients, who include older adults and people with disabilities, among others.
That's why everyone is so worried about the timeline for insolvency.
