OASI News & Analysis
2 articles
Market Mood
Social Security Trust Fund Depletion Expected by Q4 2032
The Social Security trust fund, known as Old-Age and Survivors Insurance (OASI), is projected to be depleted by the fourth quarter of 2032, with only 78% of benefits payable at that time, according to a new annual report by the program's trustees. Lawmakers are proposing to tax high earners to improve the fund's solvency, as individuals earning over $184,500 stop contributing after reaching that cap. Sen. Bernie Sanders and others are advocating for tax law adjustments, including the Social Security Expansion Act and the Social Security 2100 Act. These measures aim to increase payroll taxes for incomes over $250,000 and $400,000 respectively.
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Social Security Fund Depletion Expected by 2032, 78% Benefits Payable
According to the Social Security Administration's annual trustees report, the Social Security retirement trust fund may be depleted by 2032, one year earlier than previously estimated, with only 78% of benefits expected to be payable at that time. This new projection follows fiscal changes stemming from the Trump administration's tax law. If combined with the disability insurance trust fund, full benefits could be paid until 2034, when 83% of benefits would be payable. The report emphasizes the need for potential congressional action to address funding shortfalls, suggesting limited options for preserving benefits for retirees and disabled individuals.
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