The Social Security Act requires an annual report to Congress to assess the futures of Social Security and Medicare. The recent 2014 Social Security Trustees report shows that Social Security will be able to pay full benefits for nearly two decades, but will face a huge financial shortfall after that time. While many think that Congress should begin addressing this issue immediately, nothing has yet been done to prevent it.
What Social Security Will Look Like by 2033
By 2033, the combined trust funds that make up Social Security will be exhausted. Current money in reserves is around $2.8 trillion and expected to rise to $2.9 trillion, but the coming of age of the baby boomer generation will begin to dip into these funds. If policymakers do nothing now to address this shortcoming, Social Security would only be able to pay around 75% of benefits after 2033, and would be completely reliant on using Social Security taxes as they come in.
While not an immediate crisis, this presents a challenge that Congress should begin considering now. The two funds that feed into Social Security, the Old-Age and Survivors Insurance (OASI) and Disability Insurance (SSDI), are legally separate. SSDI is in danger of depletion by 2016. This risks putting nine million disabled people in America at a 20% benefit cut.
The older the population becomes, the more likely what is being put into Social Security will not be enough for the pay-out demands. The quicker a solution is proposed, the better individuals nationwide can plan for their financial future.
With an experienced Social Security attorney by your side, you can make sure that you get the benefits that you deserve. Contact your Dallas Social Security Disability Lawyer at the Zendeh Del Law Firm, PLLC to receive an online case evaluation!