A report released Tuesday says Social Security benefits will have to be cut by 2034 if Congress does not act now to fix the program’s long-standing funding shortfall.
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The annual report, released by the Social Security and Medicare trustees, says the Social Security fund will be unable to pay full benefits earlier than predicted last year due to economic issues caused by the COVID-19 pandemic.
According to the report, by 2034, the trust fund that pays for Social Security will be able to pay only 78% of its promised benefits.
The Old-Age and Survivors Insurance and the Disability Fund, which provides a monthly check to former workers who have retired or those who can’t work due to a disability, has enough combined funds to pay full benefits through the end of 2033.
“At that time, the combined funds’ reserves will become depleted and continuing tax income will be sufficient to pay 78% …