When Will Social Security Run Out? Key Insights and Predictions

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 approximately 70 million Americans. However, there’s no need for immediate alarm; 2035 is still 11 years away, and the deadline has already been pushed back a year from earlier estimates. This suggests that the situation is gradually improving.

What Happens When the Trust Fund Runs Out?

Even if the Trust Fund were to deplete in 2035, Social Security will continue to operate. However, retirees would face a reduction in benefits, receiving only 83% of their full entitlement, resulting in a 17% decline. While this may seem alarming, it is a situation Congress can remedy by securing the additional 17% needed to maintain full benefits.

Potential Solutions for Funding

To address the projected shortfall, Congress is likely to consider increasing the Social Security payroll tax. As of 2024, payroll tax deductions are applied to the first $168,000 of an individual’s annual income, with Social Security tax representing around 12.4% of earnings. This adjustment could generate the necessary funds to keep benefits at their current levels.

Social Security Policy Stances: Trump vs. Harris

Social Security is a significant topic that garners bipartisan concern, necessitating careful consideration. With the 2024 election approaching on November 5, candidates Donald Trump and Kamala Harris have outlined their respective positions on Social Security.

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Kamala Harris’s Position

Kamala Harris emphasizes the importance of protecting and potentially expanding Social Security benefits. She advocates for higher contributions from affluent individuals and corporations, proposing measures to increase revenue without reducing benefits for current or future retirees.

Donald Trump’s Position

In contrast, Donald Trump aims to maintain existing Social Security benefits without proposing cuts or adjustments related to age. He believes that economic growth will adequately support the financial needs of the Social Security program.

Conclusion

As the conversation around Social Security continues, it is clear that both candidates recognize the program’s importance to millions of Americans. The discussions and decisions made in the coming years will be crucial in ensuring its sustainability and effectiveness for future generations.