THE TREND CONTINUES: As last year’s report predicted, the amount of benefits paid out in 2021 exceeded the amount of money he took in. This trend is expected to continue, according to Thursday’s report.
Social Security is made up of two components: one for retirees, children and widows; and the other for those applying for disability insurance benefits.
The pension scheme – which dwarfs that for the disabled – is expected to be able to pay full benefits in a timely manner until 2034, a year longer than the last report. After that, the program would pay a reduced amount of just over three-quarters of the scheduled benefit unless Congress intervenes.
Brighter Disability Fund: In contrast, the disability insurance trust fund continues to be stronger. The 2020 analysis predicted that it would run out in 2049, before being pushed back to 2057 in the report released in 2021. Thursday’s report said the fund should be able to meet its financial obligations beyond the 75-year projection window – a first since the early 1980s, according to administration officials.
Federal officials note that uncertainty related to the Covid-19 pandemic continues to cloud forecasts, but the report says officials “currently assume that the pandemic will have no net effect on our long-term projections.”
Medicare is getting better too: The fund that covers hospital care through Medicare, better known as Part A, is expected to remain solvent through 2028. The program’s previous insolvency projection was 2026.
And after: Social Security and Medicare costs are expected to continue to rise significantly relative to the economy as a whole over the coming decades, as more and more baby boomers are retiring and increasing the number of beneficiaries, while a lower birth rate is holding back employment and economic growth.
Administration officials also said they expected inflation to lead to a noticeable increase in benefits in the form of an approximately 8% increase in the cost of living, although that figure was not released. finalized.