Just a heads up that government spending and entitlements are still a problem that will bankrupt and/or destabilize this country if we don’t do something about it.
New York (CNN)In 16 years, Social Security will have to cut benefits by 21% if lawmakers do nothing to cure the program’s long-term funding shortfall.
That’s what the Social Security and Medicare trustees projected in their 2018 annual report released Tuesday.The trustees estimate that by 2034 the combined trust funds for Social Security — which help fund the old age and disability programs — will run dry. At that point Social Security will be able to pay only 79% in promised benefits to retirees and disabled beneficiaries.Those projections are roughly on par with last year’s report, which estimated the combined Social Security trust funds would be tapped out by 2034 and would then only be able to pay out 77% of benefits.
For the first time since 1982 Social Security’s costs will exceed its payroll income plus interest from the $2.9 trillion trust funds. That means it now must start drawing down principal in the trust fund to continue paying promised benefits in full.