Frays in that Social Security Blanket…

The good news is, Social Security isn’t projected to run short of funds any sooner than it was a year ago. That’s also the bad news.

According to the annual Social Security Board of Trustees report, the year when the combined trust fund reserves are projected to become depleted (if Congress does not act before then, they optimistically remind us), is 2034 – the same as projected last year.

At that time, there will be sufficient income coming in to pay 79% of scheduled benefits – a figure that’s slightly higher than the 77% projected in last year’s report.

However, the total annual cost of the Old Age, Survivors and Disability Insurance Program (OASDI) program – what we generally refer to as “Social Security” – is projected to exceed total annual income in 2018 for the first time since 1982, and to remain higher throughout the 75-year projection period. And that means that asset reserves are expected to decline this year. Social Security’s cost has exceeded its non-interest income since 2010.

At the end of 2017, the OASDI program was providing benefit payments to about 62 million people: 45 million retired workers and dependents of retired workers, 6 million survivors of deceased workers, and 10 million disabled workers and dependents of disabled workers.

During the year, an estimated 174 million people had earnings covered by Social Security and paid payroll taxes on those earnings.

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