(FinancialHealth.net) – On April 22, the Social Security Board of Trustees issued their annual report about the health of the program. For the most part, not much has changed. There’s a big hole in the report, though, and it might be cause for worry.
According to the Board of Trustees, the trusts that help pay for Social Security are fully funded until 2035. That number remains unchanged from 2019. When those funds are depleted, payroll taxes will fund the program.
One glaring issue with the report is it doesn’t account for the damage COVID-19 will have on the program. According to a report by the Associated Press, officials told reporters they expect the program to suffer from the coronavirus.
Even if employment rebounds by the end of this year and payroll taxes return to near-normal levels, the shock from the pandemic shutdown could accelerate the depletion of the Social Security trust fund by about six months. https://t.co/Fa44Y1IWdx
— WOWT 6 News (@WOWT6News) April 22, 2020
So, what does that all mean in layman’s terms? Basically the Social Security fund is still bleeding. Eventually it will run out, and retirees, the disabled and survivors will receive less money than they are entitled to. Once again, the Board of Trustees report is illustrating time is running out for Congress to shore up the trusts.
~Here’s to Your Financial Health!
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