When will social security run out? This is what and when will probably happen

According to Marca, The Social Security Trust Fund reserves are projected to expire in 2035, raising concerns about the program that provides essential support to 70 million Americans. However, there’s no immediate cause for alarm. Although 2035 is just over a decade away, the expiration date has already been extended by a year from previous estimates, indicating that the situation is gradually improving. Even when the reserves are depleted, Social Security will continue to provide benefits, albeit at a reduced rate.

The Impact of Trust Fund Depletion

When the Trust Fund runs out, retirees can expect to receive about 83 percent of their full benefits—a decline of 17 percent. While this reduction might seem alarming, it is preventable. Congress has the option to address this shortfall by finding the necessary funds to maintain full benefits. One likely solution involves increasing the Social Security payroll tax, which currently stands at approximately 12.4% of an individual’s paycheck. In 2024, this tax applies to income up to $168,000, taken from both employees and employers.

Political Perspectives on Social Security

As the 2024 election approaches, Social Security remains a bipartisan concern that both Republicans and Democrats recognize must be addressed with care. With Election Day on November 5, the positions of key political figures like Donald Trump and Kamala Harris come into focus.

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Kamala Harris emphasizes the importance of protecting and potentially expanding Social Security benefits. She advocates for higher contributions from wealthy individuals and corporations to increase revenue without resorting to benefit cuts.

Donald Trump, on the other hand, aims to preserve current Social Security benefits, without proposing cuts or changes related to age. He believes that economic growth will adequately support the financial needs of Social Security.

Conclusion

As the nation grapples with the future of Social Security, it is essential to remain informed about the proposed solutions and the political discourse surrounding this vital program. With the deadline of 2035 looming, the conversation around funding and sustainability will be critical in shaping the future of Social Security for millions of Americans who rely on it.