The
Social Security Board of Trustees released its annual report on the financial
health of Social Security’s combined trust fund reserves this month. The Old
Age and Survivors Insurance and Disability Insurance (“OASDI”) trust funds are
expected to be depleted in 2034. At that time, recipients would only be eligible
for 79 percent of their estimated benefits unless Congress takes action to strengthen
the programs that fall under the Social Security Administration’s (“SSA’s”)
umbrella. This expected depletion date aligns with the predictions from last year.
Last
year alone, SSA paid out $941 billion to 62 million beneficiaries. Total
expenditure by SSA for 2017 amounted to over $952 billion. SSA brought in a
total income of $997 billion for 2017.
No
one knows what SSA’s future looks like. After all, the program is 83 years old
and has undergone various adaptations over the years. SSA will undoubtedly
continue to evolve over the next 16 years as we approach the expected depletion
date.
While
SSA has helped countless numbers of retirees and disabled individuals since
1935, there is no guarantee that it will continue to exist in the exact format
that we are used to seeing. Keep in mind that the programs administered by SSA
were never meant to be complete income replacement programs. Rather, SSA is set
up to operate like any other insurance program and is meant to supplement
people’s savings and other private investments. Thus, it is important to continue
to try to save for your future independently to what you expect to receive from
SSA down the line. After all, you have no idea what SSA will look like by the
time you retire or if you are affected by disabilities.
For
more information and statistics in regards to SSA’s annual report, please
visit: https://www.ssa.gov/news/press/releases/2018/#6-2018-1
Got a question about SSDI or SSI that you need us to answer? Please check out our website at www.westcoastdisability.com . We try to provide you with helpful information on our website that will allow you to successfully navigate the Social Security Disability process. Also, feel free to email me your questions at megan@westcoastdisability.com or call me at (800) 459-3017 x 103.
