Nearly 66 million Americans, many over 62, received Social Security in November. These benefits are essential for 48.5 million retired workers to cover their expenses.
America's top retirement scheme is in peril despite supporting retirees. President Joe Biden thinks he can reform Social Security, but he needs newly elected lawmakers.
For the past 83 years, the Social Security Board of Trustees has produced a report on the program's short-term (10 years) and long-term finances (75 years following the release of a report).
report). The Trustees Report is Social Security's balance sheet and shows how revenue is collected and spent.
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The Trustees Report evaluates Social Security's financial health using backward-looking financial statistics and shifting macroeconomic and demographic factors.
The 2022 Trustees Report revealed Social Security's highest funding shortfall: $20.4 trillion through 2096. Since 1985, every Trustees Report has predicted a long-term funding problem.
Demographic changes have caused Social Security's financial decline. Birth rates, net immigration, and income disparity are examples. With these changes affecting the worker-to-beneficiary ratio, the program's finances may suffer.
According to previous year's forecasts, OASI's asset reserves will run out in 2034. The OASI Trust pays 48.5 million retired workers and 5.9 million survivors monthly.
If this excess income runs out within 12 years, the Trustees anticipate an across-the-board benefit cut of 23% would be needed to maintain payouts through 2096.
In January 2023 currency, a 23% benefit decrease would drop the typical Social Security payment by $420 per month, or $5,000 per year.