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WASHINGTON DC, September 3, 2021 ~ A report released by the US Social Security Administration revealed that the pandemic has “significantly affected” the funds with which benefits are paid. Full Social Security benefits will only be able to be paid until 2033.
“The headline is important, and it is shocking to people, but it’s only one year sooner than it was already expected,” Financial Planner Time Payne told 760 WJR’s Kevin Dietz.
September 2, 2021 ~ Congressman Dan Kildee talks with Kevin Dietz about what Congress could do to prevent the Social Security Administration from running out of full funds.
September 2, 2021 ~ Tim Payne Financial Planner talks with Kevin Dietz about the Social Security Administration says they won’t have enough money for full benefits starting in 2034.
The retirement trust funds will only be able to pay full benefits until 2033. Starting in 2034, the program will only be able to pay around 75% of scheduled benefits. Additionally, the Disability Insurance Trust Fund will only be able to pay benefits until 2057, which will then move to only 91% of the full benefits the following year.
These lower figures have been projected to occur sooner than were predicted last year, as the COVID-19 pandemic has affected the funds, which were already running low.
“People are living longer, and fewer people are being born”, said Payne. “So when we look at the benefits being paid out now, there is that trust fund there, but there’s money going in … and it’s not as much as what’s going out.”
Some representatives, such as Congressman Dan Kildee, are forming legislation to remedy the problem, “essentially by addressing one of the weaknesses of Social Security,” said Kildee to Kevin Dietz. “And that is that the Social Security tax collections stop after a person is making somewhere in the range of $120,000.”
“The only other choices we have are: to cut benefits — which I am not going to vote for — or decide that we are going to means-test Social Security, and only have certain people up to a certain income eligible. I don’t think that is what we want to do.”