An Update on Social Security Funding StatusBy Kenton Koszdin on June 15, 2018 | In Social Security Claims Process
The latest Social Security Trust Fund report posts a serious warning as to when these badly needed benefits will run out – yet the Social Security Disability (SSDI) fund status has improved compared to last year.
Social Security payments are made from 2 trust funds:
- The Disability Insurance Trust Fund for SSDI payments to disabled workers and their families, and
- The Old-Age and Survivors Insurance (OASI) Trust Fund for retired workers, their families and the families of deceased workers.
The most recent Trust Fund report states that the combined assets in the funds totaled $2.89 trillion as of the end of 2017. On the surface, that looks to be an enormous amount of money! However, with more Americans becoming eligible for Social Security payments because of age or disability, and with fewer younger workers paying FICA taxes into the system to support their benefits, both funds are scheduled to be depleted within the next 16 years.
Looking at the combined Funds, the report states that they are projected to run out in the year 2034 – the same as was projected in last year’s report – with 79% of benefits payable at that time.
Social Security Disability Fund: Good News and Not-So-Good News
The Social Security Board of Trustees, looking at the Disability Trust Fund by itself, projects that this Fund will become depleted in the year 2032. This means that more funds will be paid out by the Fund over the next 14 years than incoming taxes can replace. As of right now, the plan for 2032 is to continue paying at that time only 79% of benefits due to reduced funding.
The good news? This funding status is an improvement over last year’s report when SSDI funding was estimated to be depleted in 2028.
It is important to note that these funding estimates are based on no corrective action from Congress. There are many proposed solutions to the funding problem that will be offered and analyzed in the coming years. Stay tuned for future updates on Social Security Disability and Old-Age and Survivors benefit funding.
We Can Help You Apply for Social Security Disability
If you or a loved one has been denied Worker’s Compensation or Social Security Disability (SSD) benefits, it’s important to get an attorney experienced in these types of cases involved immediately. Call 800.438.7734 for your initial free consultation, either in our office or in the comfort of your own home. The Kenton Koszdin Law Office, Social Security attorney in Van Nuys, can help you navigate the application process for the best possible outcome for you and your family.