U.S. Social Security Reserves are Estimated To Run Out Earlier Than Expected

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Translated by: MOS Media Group – CloudSky

Photo credit: freesvg.org

The New York Post reported on September 1 that the US social security needs to cut benefits in 2034, one year earlier than expected. The cut is due to the decline in payroll tax income caused by the CCP virus pandemic and the short-term economic recession.

The Old-Age and Survivors fund and the disability insurance trust fund are supervised by the Ministry of Finance. The trustees of the two social security funds said in a report on Tuesday that the two funds can only pay full benefits until 2033.

The Disability Insurance Fund is projected to be able to pay full benefits through 2057, eight years earlier than Treasury officials reported last year. The total Social Security Trust Fund is estimated to run out of reserves in 2034, a year earlier than last year’s projection. By then, it will have paid only 78 percent of promised benefits to retirees and disabled beneficiaries, Treasury officials said. SSA Acting Director Quilolo Chiacazi said in a statement, “social security continues to play a key role in the lives of 65 million beneficiaries and 176 million workers and their families during 2021.”

The Medicare Part A trust fund, which covers hospital care, is estimated to exhaust its reserves in 2026, the same as last year’s projection. At that point, ongoing revenue will be only able to pay 91 percent of the plan’s benefits. The disaster brought about by the CCP virus pandemic has just begun to show its power. In the United States alone, it may cause millions of Americans to face a difficult life of old age. Not to mention that Wall Street has invested a sizable amount of Americans’ retirement funds into Chinese stocks, which have now reportedly lost $500 billion. A possible economic disaster will very likely take place at the end of this year.

Edited by: James Zoebel

Posted by: Mr. Z

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