A new report from the Social Security trustees shows that funds will run out sooner than expected. Here's what that means for younger generations.
WASHINGTON — On Tuesday, the government reported that Social Security reserve funds are set to run out one year earlier than expected.
Now this doesn't mean that the benefits will be gone entirely. It just means that that Social Security will be unable to pay full benefits starting in 2034 instead of 2035, like the trustees previously thought.
For the first time in 39 years, the cost of delivering benefits will exceed the program’s total income and interest during this year. So from 2034 on, Social Security will be tapping its savings to pay full benefits.
Why did this happen?
The COVID-19 pandemic affected just about every part of our lives, and Social Security is no exception.
The economy went into a recession when the U.S. lost a staggering 22.4 million jobs in March and April 2020 as the pandemic forced businesses …