Social Security is expected to run short on funds by 2035, according to a new report.
Social Security relies on its trust funds to provide monthly benefit checks to around 70 million Americans.
But an aging population is pushing up the cost of the program as a smaller share of people are paying into it, and spending is outpacing income.
The latest annual report from the Social Security Board of Trustees found that the program will only be able to pay out full benefits for the next 11 years – which is one year later than previous estimates.
While Martin O’Malley, Commissioner of Social Security, said this was “good news” for beneficiaries, he urged Congress to take steps to “extend the financial health of the Trust Fund into the foreseeable future.”
Social Security is financed mainly through payroll taxes that are taken out of paychecks – which are then used to pay retirement and disability benefits.
If the trust funds which the Social Security Administration relies on are depleted, it does not mean that payments will suddenly disappear.
Instead, the Trustees forecast that beneficiaries will face a cut to their monthly checks – losing 17 percent of their current benefits.
This could be significant for millions of disabled Americans, and those who rely on Social Security as their sole income in retirement.
Read the full story in the Daily Mail.
