Social Security under threat: Major trust funds could run out of money by 2033...• https://www.dailymail.co, By HOPE SLOOP
Updated predictions regarding three of the major Social Security funds cast a grim shadow on the future ahead for the U.S. population.
According to the latest projections from the Congressional Budget Office, two of the funds will be drained by 2033 while another major fund will be gone by 2048.
The Old-Age and Survivors Insurance Trust Fund are the two funds most in danger of being depleted while the CBO says the Disability Insurance Trust Fund is also of grave concern.
Social Security spending has been on the rise as more Americans hit retirement age and leave the workforce, solely relying on the fund's benefits.
The news of the projections comes as Social Security recipients saw a major boost in their payments beginning in the new year.
Social Security hiked the benefits by 8.7 percent beginning in January to combat record inflation. The increase marks the highest cost of living surge since 1981.
The latest projections from the CBO found that the current gap between the outlays from the funds and the revenue received - if continued over the next ten years- will cause the fund to officially hit zero.
Should that happen, the Social Security Administration would be unable to pay out full retirement benefits to retirees as they become eligible.
Even if the Disability Insurance Trust Fund and the Old-Age and Survivors Insurance Trust Fund were to be combined, the fund would still run out by 2033.
The funds have additionally been stressed as they have been used to pay out payroll tax revenue to retirees.