The 2016 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds (the “Report”) was released in June, 2016. And, as it normally does, it contained a vast wealth of information, including data about the system’s financial capacity presently and in the future. The Report mentions certain key dates of interest relating to the supply and deletion of trust funds.
The Report lists the “headline date” as 2034. This is the date when the combined Social Security trust funds are expected to run out of Treasury bonds to cash in. Following the 1983 Social Security amendments, trust funds greatly increased. The principal and interest from the trust funds’ bonds should allow Social Security to keep paying full benefits until 2034. At this time in 2034, without anything more, the program would still have the capacity to pay 79 percent of scheduled benefits, which would decrease to 74 percent by 2090. Obviously, contrary to popular belief, i.e., misconception, the federal government would not stop paying benefits completely. THE SYSTEM IS NOT BROKE.
While 2034 is the Trustees’ best estimate of when trust funds will be depleted, they conclude that there is an 80% chance that trust fund exhaustion will occur sometime between 2030 and 2040. Primarily because it assumes slightly faster increases in mortality, the Congressional Budget Office (CBO) expects trust funds to be depleted in 2029, with an 80 percent probability that the combined trust funds will be exhausted between 2026 and 2033.
Do you have a potential disability claim? One of the best ways to improve your chances of meeting all of the requirements for the allowance of a claim (and avoiding the denial of benefits) is by retaining the services of a qualified Kentucky Social Security Disability attorney. Contact Sullivan Law Office today. We offer free consultations, so you have absolutely nothing to lose! We look forward to hearing from you. Call 888-587-0228 or visit us online.