Social Security’s trust funds are headed toward depletion, and without a fix from Congress, retirees will see steep payment cuts in less than a decade.
The annual Social Security trustees’ report this week said the Old-Age and Survivors Insurance (OASI) trust fund is on track to reach insolvency in 2033, at which point benefits would be cut by 21%.
If Social Security’s Disability Insurance trust fund were combined with the OASI fund, which would require a change in the law, the funds would be able to pay the total scheduled benefits until 2035. But if reforms are not implemented by that time, payees can expect a 17% reduction in their checks.
Following the release of the report, President Biden issued a statement saying he “will keep strengthening Social Security” and that he is “committed to extending Social Security solvency by asking the highest-income Americans to pay their fair share without cutting benefits or privatizing Social Security.”
The president accused congressional Republicans of wanting to cut Social Security and increase the retirement age.
The U.S. has an aging population, more than 67 million of whom receive Social Security benefits. And the older an American is, the more likely they are to vote, so many politicians shy away from discussing reforms of the program at all.
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