Social Security funds may be running short when it comes to future payouts, but the Social Security Commissioner expects that these deficiencies may not affect citizens until 2034 or later, the Washington Post reports. The question remains as to how much of an impact the aftermath of 2020 will have on the Social Security Administration bottom line and on Missouri residents hoping to receive their hard-earned benefits in the future.
In short, the SSA can pay its current obligations but may not be able to pay up on all of its expected responsibilities in the coming years. Thankfully, the SSA divides its responsibilities into separate funds to manage its different areas of responsibility. For example, disability payments and retirement benefits are separate funds under the administration’s authority.
Retirement and survivor benefits
The branch of SSA responsible for retirement and survivor benefits is the Old-Age and Survivors Insurance Trust Fund. The OASI predicts that it will be unable to pay as much as 24% of its expected payments to US citizens by the year 2034 and may need to adjust its payment amount without federal intervention.
The branch of SSA responsible for disability benefits is in better condition, in part due to a reduction in disability applications in the past decade. The Disability Insurance Trust Fund estimates that it will be able to pay out approximately 92% of scheduled benefits with funds it already expects to receive.
The future of the SSA may rest on Congress’ upcoming regulations. Experts predict that the setbacks of 2020 may result in additional financial suffering and could result in greater deficiencies that impact citizens sooner. Without Congressional action, the SSA may struggle to restore solvency.