Social Security Will be Depleted in 2034

 Can you even imagine a more perfect storm of calamity already descending upon America?  Let's count up a few clouds that are already here like $5.50 diesel fuel, skyrocketing food prices, epic droughts in the West, mass shootings, 10 weeks of wheat left, drug epidemic destroying our kids, Russia at war in Ukraine and delusional Democrats at the helm all while rejection of Jesus skyrockets.

Now let's look at a few that are on the horizon.  Maybe China invades Taiwan and we are forced to put up or shut up?  Maybe the US Dollar loses it's Reserve Currency status and global demand for it plummets causing even more inflation.  Maybe diesel fuel goes to $10 per gallon later this fall?  Maybe Social Security runs out of money in 12 years?  Maybe 70% of Americans have saved NOTHING but the money they hope to receive from Social Security?  Maybe America becomes a 3rd world country with rolling blackouts, bankrupt people by the millions living on the streets because they failed to save any money and now the NET of Social Security is even gone?  Maybe the US Government can't continue paying the interest on the $31 trillion of debt it has amassed?

As of right now, Social Security will be able to pay scheduled benefits until 2034—one year later than reported last year—according to the just-released 2022 report from the Treasury Department’s Social Security Board of Trustees.

The new report found that without changes, the Old-Age and Survivors Insurance (OASI) Trust Fund is projected to become depleted in 2034, one year later than last year’s estimate. At that time, the fund’s reserves will become depleted and continuing tax income will be sufficient to pay 77% of scheduled benefits.

The report also found the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2035, also one year later than projected last year, with 80% of benefits payable at that time.

The DI Trust Fund asset reserves are not projected to become depleted during the 75-year projection period.

The Senior Citizens League’s Mary Johnson told 401k Specialist  Friday that while the solvency outlook improved as businesses got back up and running and wages grew to boost payroll tax revenues, there is a darker side to that rosier outlook.

“One factor playing a role in the improved solvency for the programs was the very high mortality rates of adults age 65 and up due to COVID-19 (according to the Congressional Budget Office). That lowered claims and program spending for both,” Johnson said.

In the 2022 Annual Report to Congress, the Trustees announced:

The asset reserves of the combined OASI and DI Trust Funds declined by $56 billion in 2021 to a total of $2.852 trillion.

The total annual cost of the program is projected to exceed total annual income in 2022 and remain higher throughout the 75-year projection period. Total cost began to be higher than total income in 2021. Social Security’s cost has exceeded its non-interest income since 2010.

Calls for Congressional action“It is important to strengthen Social Security for future generations. The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually,” said Kilolo Kijakazi, Acting Commissioner of Social Security. “Social Security will continue to be a vital part of the lives of 66 million beneficiaries and 182 million workers and their families during 2022.”

Polls show that as many as a quarter of current working-age Americans don’t expect to receive Social Security benefits—a mistaken but understandable belief. A statement from the Bipartisan Policy Center (BPC) in response to the new Trustees Report said the sooner policymakers act, the more policy options are available with adequate time to phase them in and allow the public to prepare.

“Social Security’s financial shortfall has been well known for years, and now it’s staring us in the face just over a decade away. This year’s report shows yet again that we are well past the time for talking points and partisan entrenchment,” said Shai Akabas, Economic Policy Director  for the BPC.

Here;  Social Security Gains Another Year of Solvency: 2022 Trustees Report - 401(k) Specialist (401kspecialistmag.com)

So it's a good news-bad news type of thing.  

The bad news is that lots of seniors died when Covid pushed them over the edge.

The good news is that Social Security doesn't have to pay dead people any longer so they added 1 year to their solvency calculation!

The bad news that Social Security is going to start suffering serious payment problems in 12 years instead of 11 years that they had calculated last year.

The bad news is that this year Social Security isn't taking in enough money to pay for the program.

The REALLY bad news is that Congress needs to act on this right now if we have any hopes of "fixing" Social Security.

The REALLY, REALLY bad new is that the US Government borrowed all the money from the Social Security Trust Fund back when Bill Clinton was President and they stuffed the Trust Fund full of IOU's.  And now the US Government is going to have to start paying back the Trust Fund....with more printed money which is going to make inflation even worse.

It's getting VERY HARD to see how America is going to survive all of these storm clouds.  A train wreck seems right around the corner.

I sure hope Jesus is coming soon and very soon.