Is Social Security Running Out Of Money?
Recently, there has been a flood of articles in the news media regarding the solvency of the Social Security trust funds.
•· According to an April 24, 2012 article in the Wall Street Journal, a government report provided that Social Security will exhaust its retirement fund reserves by 2033. Further, the trust fund which pays disability benefits will be exhausted by 2016. The Medicare trust fund is projected to be exhausted by 2024.
•· According to a February 18, 2012 article in the New York Post, the Social Security Disability Trust Fund will run out of reserves by 2018.
•· According to the March 2012 issue of AARP Social Security can pay 100% of retirement benefits through 2036. After 2036, Social Security can only pay 75% of benefits. The Medicare Hospital Trust Fund can pay 100% of benefits only through 2024.
I recently attended a conference of N.O.S.S.C.R., the National Organization of Social Security Claimants’ Representatives. On May 3, the executive director of N.O.S.S.C.R., Nancy G. Shor reported that she had obtained a report from the Actuary for the Social Security Administration Trust Funds. Nine million individuals are presently receiving Social Security Benefits. According to the Actuary, somewhere between 2016 and 2018 the Social Security Disability Program will be exhausted, however, that does not mean that there will not be funding for any payments. The fund will drop below the reserve level so that the trust fund will only be able to pay out 86% of the benefit payments. By 2085, the Trust Fund will only be able to pay out 83% of the disability benefits. The Retirement Disability Fund will exhaust its reserves by 2035.