Social Security: When Will It Run Out and What That Means for You
According to Marca, The Social Security Trust Fund reserves are projected to expire in 2035, raising concerns about what will happen to the program that provides crucial assistance to approximately 70 million Americans.
A Temporary Reassurance
For now, there’s no need to panic. The year 2035 is still 11 years away, and recent updates indicate that this deadline has been extended by a year from earlier predictions, suggesting a positive trend. Even when we reach 2035, Social Security will continue to operate.
Impact of the Trust Fund Expiration
However, the expiration of the Trust Fund reserves will mean that retirees may only receive 83 percent of their full benefits—a 17 percent decrease. While this sounds alarming, it is a scenario that Congress can address and potentially prevent.
Solutions for Sustainability
To bridge the gap and maintain full benefits, Congress will likely need to increase the Social Security payroll tax. As of 2024, payroll tax deductions apply to the first $168,000 of an individual’s yearly income, with Social Security tax making up approximately 12.4% of employees’ and employers’ contributions.
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Political Perspectives on Social Security Ahead of 2024 Elections
Social Security is a critical issue in the U.S. that garners bipartisan agreement on the need for careful attention and reform. With the 2024 election approaching on November 5, candidates are outlining their positions.
Kamala Harris’ Approach
Vice President Kamala Harris emphasizes protecting and potentially expanding Social Security benefits. She advocates for higher contributions from wealthy individuals and corporations, proposing measures to increase revenue without cutting benefits.
Donald Trump’s Stance
Former President Donald Trump, on the other hand, focuses on preserving current Social Security benefits without suggesting cuts or changes related to age. At 78 years old, he believes that economic growth will be sufficient to meet Social Security’s financial needs.
