The Effects of the Pandemic on Social SecurityBy Kenton Koszdin on October 19, 2020 | In Social Security Benefits
The Social Security Administration (SSA) has been developing the Social Security program since August 14th of 1935. Since that summer, there has been an association between the American dream and a persons’ eventual access to their Social Security Benefits they have been contributing to since they began working earlier in their lifetime. As a government program, Social Security not only helps older Americans once they retire, but it also helps those who become disabled, as well as families who have experienced the loss of a spouse or parent. It’s hard to imagine living the American life without the promise of Social Security Benefits if and when you qualify for them, Still, there are continued efforts and instances which threaten to diminish the program so many rely on to survive.
Unemployment and Early Retirement effects the Social Security program
One of the many threats includes the current global pandemic we’ve all experienced since earlier this year in 2020. The pandemic itself can be detrimental to the long-term financial well-being of the Social Security program. Countless people have been laid off from their jobs and experiencing financial insecurity. It has led many individuals and families to decide that they will retire early in order to qualify for their Social Security benefits during the economic drought.
The problem with this, however, is that the payments one receives from their benefits derive from the contributions of fellow Americans actively employed in a position that pays into Social Security. Because so many people have been laid off from their jobs, there’s a significant decrease in the contributions made via payroll to the Social Security trust fund. By retiring early to access their benefits, this leaves the fund being withdrawn from more often than paid into. It’s projected that the Social Security trust fund will be depleted entirely by 2035 – two years earlier than previously projected to reach a zero balance.
There is hope, however, and time left to make the changes necessary to save the future of Social Security. Keeping yourself informed and having the right attorney on your side can make all the difference. Contact our team at the Kenton Koszdin Law Office, Social Security Attorney in Van Nuys, to schedule your free initial consultation today: 800.438.7734.