The COVID-19 Pandemic, 2020 Recession, inflation, fluctuations in entitlements, birth rate, and immigration data have affected SSA solvency. If you have read the headlines, most state SSA extends benefit solvency by a year. This is only a small portion of the complete picture.
Current analysis does project the Old-Age and Survivors Insurance (OASI) Trust Fund to indeed pay full benefits for an additional year, updating to 2034. After 2034 the OASI Trust Fund will only be able to sustain 77 percent of scheduled benefits.
The other Trust Funds:
The Disability Insurance (DI) Trust fund will only be able to fund benefits until 2057.
The Hospital Insurance (HI) Trust Fund has extended its full coverage until 2028 after which it will have sufficient fund to pay 90% of benefits.
The Supplementary Medical Insurance (SMI) Trust Fund is funded into the indefinite future since its revenues are supplemented by beneficiary premiums.
For detailed information, I recommend you review the 2022 Board of Trustees Annual Report on the SSA and Medicare programs.
Our congressional representatives can address these deficiencies in a variety of ways, including, but not limited to:
* entitlement cuts
* tax increases
* adjustments in full retirement age
Historically, representatives have not passed solutions to these issues due to political unpopularity. Ideally, these issues are best resolved proactively rather than reactively. Your local congressional representative is where to look for solutions to this issue.
Maryellen Eckert
SSA Specialist
