A new study found the coronavirus pandemic is negatively affecting Social Security trust funds.
Social Security reserves may run out this decade if the health crisis continues to hinder the economy, according to the Washington-based Bipartisan Policy Center.
If there were to be sharper downturns akin to what was seen in the Great Depression, the depletion date for disability insurance trust fund reserves may come by the next presidential term. Old age and survivors insurance trust funds could run out by the time of the 2028 presidential election.
Social Security relies on the health of the economy, meaning recessions may cut the program’s revenues and raise costs.
As a whole, Social Security benefits could run out by 2029, five years earlier than the projected date of 2035. The depletion does not mean Social Security won’t be around but that the system will exhaust its cash reserves and will only be able to pay out what it takes in year-to-year in taxes.
Social Security offers economic security to millions of people, including retirees and those with disabilities. According to the National Academy of Social Insurance, a nonprofit group that studies social insurance based out of D.C., about 169 million U.S. citizens pay Social Security taxes, and 61 million collect monthly benefits.
In June 2017, the average monthly Social Security benefit was $1,391 for a retired worker.
