Will Social Security Run Out of Money?
Since the first day of your first job, you’ve been paying into Social Security, but that doesn’t guarantee that you’ll get out of it what you’ve put in. Potential cuts to Social Security and Medicare would likely destabilize a system that many have already said is broken. In fact, the way things seem today, the odds aren’t looking too good.
The Troubled Social Security System
This year, for the first time since 1982, the federal government has admitted that it needs to tap Social Security’s trust fund to pay for the program. It seems clear that unless lawmakers do something soon to prop up the system, things could get a lot worse in the near future. How much worse? Estimates show that unless something is done quickly, monthly checks could get cut 23% by 2034.
And that’s not all. The Social Security trustees, led by Treasury Secretary Steven Mnuchin, suggest that Medicare’s hospital insurance fund would likely be depleted as early as 2026, which is three years earlier than it forecast a year ago. If that happens, Medicare will only be able to pay about 91% of its costs.
Some Reasons Why Social Security is in Trouble
Three things have converged that together are causing tremendous stress on these gigantic federal programs. First, the nation is aging. In 2017, there were only 2.8 workers for each person receiving Social Security. In 2007, that ratio was 3.3. On top of that, the new tax cuts have lowered projected revenue from the taxation of Social Security benefits. And finally, according to the SSA, our current administration’s decision to stop allowing young undocumented immigrants a reprieve from being deported and allowing them to continue working also cuts into tax revenue.
Estimates indicate that some 61.5 million people receive retirement or disability benefits from Social Security and 58.4 million receive Medicare. That is a staggering number of people who are relying on programs that are in increasingly perilous shape, and it seems that at least at the moment, there’s little desire among politicians from either party to do much of anything about it.
What Is Being Done to Fix Social Security
The obvious solution would be to raise taxes, cut benefits, or raise the Social Security retirement age, or some combination of all three. The President has offered a different idea, however, and that is to stimulate faster economic growth through tax cuts, fewer regulations and better trade deals. His hope is that faster economic growth would generate enough revenue to keep the programs afloat without having to make painful cuts or tax hikes. This plan is controversial, and some feel that even if it would work, it is not realistic, especially in the light of the White House’s four-front trade war with Canada, Mexico, China and the European Union. The Commerce Department’s figures are not encouraging either, showing a decrease in 0.7% in trade from last year.
Despite these gloomy statistics, the news isn’t all bad. Trustees say there is a part of Social Security that is actually getting better—and that is the program that pays out disability benefits. It is currently projected to run out of money in 2032, which is four years later than last year’s forecast. Of course, that depends on the growth rate of disability applications, which right now has fallen. That trend may not continue.
It remains to be seen what the future of Social Security and disability benefits will be for hard working Americans who have paid into the system. Our Long Beach Social Security Disability attorneys will continue to monitor the situation to ensure that you have the most up to date information available to you.
Long Beach Social Security Attorneys
If you or a loved one is unable to work due to a disabling injury, medical condition or disease our skilled and experienced Attorneys are here to help you get the maximum Social Security Disability benefits for which you qualify.
The Law Office of Cantrell Green is a group of highly qualified and experienced disability attorneys who have obtained millions of dollars in Social Security Disability benefits for thousands of clients in Long Beach, Orange County and the greater Los Angeles. Our Social Security Attorneys care about every client, and fight tirelessly to obtain the benefits you deserve.
Free Social Security Disability Attorney Consultation: 800-964-8047