The sharp and quick downturn caused by COVID-19 last year has weighed on the stability of Social Security, changing the projection models.
In the annual report released Tuesday by the social security trust fund, the trustees have said that they predict the social security funds will be depleted by 2034 instead of what they originally thought would be 2035.
If this happens, Congress and lawmakers would need to step in to change the program, which they’ve done before.
Other factors taken into account is that the childbearing and immigration rates are lower due to the pandemic, and that the death rate will be higher through 2023 due to the pandemic.
Higher inflation this year will boost benefits next year and social security beneficiaries may see as much as a 6% increase for cost of living.
The rise hasn’t been that high since 2008.
In 2021 the cost of living was only 1.3%.
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