Social Security to become unable to pay full benefits sooner than previously estimated
Social Security’s trust funds will become unable to pay full benefits starting in 2034, one year earlier than estimated last year, its trustees projected Tuesday, as the COVID-19 pandemic forces a reassessment of the giant federal program’s finances.
The U.S. government also said Medicare’s hospital insurance fund will be depleted by 2026, or at the same time as predicted in 2020. It issued annual trustees reports on both programs Tuesday.
“The pandemic and its economic impact have had an effect on Social Security’s Trust Funds, and the future course of the pandemic is still uncertain,” said the Social Security Administration’s acting commissioner, Kilolo Kijakazi, in a statement.
“Yet, Social Security will continue to play a critical role in the lives of 65 million beneficiaries and 176 million workers and their families during 2021.”