2034 and 2023 – Important Years to keep in mind for all current and future SS Beneficiaries.

For years and years people have been claiming that Disability and SS Retirement are going to end. They are actually separate funds, but at times, they have borrowed from one another to keep both programs afloat.

Due to the aging of the baby boomers and the lower birth rates of the next generations, more people are drawing out while less workers are paying in which is a recipe for disaster. On the bright side, this is not something that was not a surprise, and SSA has planned and prepared for this by increasing retirement ages and decreasing the amount of benefits they pay out. In fact, in the Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Insurance Trust Funds released on June 22, 2016, showed that less money was paid out in 2015 than had been expected, which resulted in an increase in the trust.

Currently, the programs combined are expected to be able to continue to pay all benefits until 2034, around the time people born in 1969 reach age 65.

The Disability Insurance Trust expenditures, in contrast, grew compared to the prior year as well as exceeding what was anticipated by the Board. The good news is that the Board had issued a report in 2015 stating that as of 2016, they would only be able to pay around 80% of benefits at that time because the fund would be insolvent. However, due to a change in tax revenue allocation the same year, the disability trust is expected to last until 2023 right now.

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Please visit our website: www.socialsecurityjustice.com or contact one of our Bailey & Galyen offices for additional information.