Social Security Trust Fund will be depleted in 2033

By September 2, 2021Member News

According to the annual Trustee Report, the Social Security Trust Fund will be depleted in 2033, one year earlier than predicted last year. After that, payouts will be reduced by 24%. The good news is that the Disability Insurance Trust Fund will last until 2057, eight years longer than estimated last year. Medicare’s Hospital Insurance Trust Fund is projected to run out of assets in 2026, the same as estimated last year, but still really bad news in 5 years if you are a physician or a hospital. Knowing these dates may be helpful for planning, but the pandemic has dramatically increased the uncertainty of these forecasts. Higher inflation will mean higher Social Security payouts. The next cost-of-living adjustment (COLA) coming in January, will likely be around 6 percent, the highest since 2008. The Disability Trust Fund may have been extended by reduced payments due to the increased number of deaths of disabled individuals who are at higher risk from COVID.

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