Excerpt:
Social Security’s reserves are projected to run out in 2033, according to a new report, at which point the entitlement program’s trust fund will be able to pay out just 77% of benefits to seniors.
That estimate is a year earlier than what was stated in the 2022 report for the Old-Age and Survivors Insurance (OASI) Trust Fund, according to the annual report released Friday from the trustees of the program. The revision reflects a 3% reduction in labor productivity and gross domestic product.
One bright spot: A projection for a key trust fund for Medicare is better. It’s expected to exhaust its reserves by 2031, three years later than reported last year, after new data forecast lower health-care spending.
Author(s): Janna Herron, Yahoo Finance
Publication Date: 31 March 2023
Publication Site: Wealth Advisor