Social Security Disability Fund on Life Support in 2 Years
NEW YORK (MainStreet) -- For current and future retirees, the news regarding Social Security benefits is no better -- and no worse -- than it has been. The latest Trustees report is substantially unchanged from last year's, with a projected depletion of trust fund reserves still projected for 2033. After that, payroll tax revenue would only allow payment of about 75% of scheduled benefits through 2088.
However, the most imminent challenge is faced by Social Security's Disability Insurance (DI) benefits. Over 10 million people received disability benefits in 2012, with an average payment of $1,134 per month to a typical recipient 53 years old.
"While legislation is needed to address all of Social Security's financial imbalances, the need has become most urgent with respect to the program's disability insurance component," the Trustees report summary says. "Lawmakers need to act soon to avoid automatic reductions in payments to DI beneficiaries in late 2016."
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