The funding the pays out social security has been deeply impacted by the pandemic, and people will continue to get full payments only until 2034.
While the pandemic had an impact, this is not new. The original projections showed it would be running low by 2035 even without a global shutdown.
Full payments are expected through to 2033. By 2034 only 75% of the full payment will be given.
The Disability Insurance Trust Fund is also struggling and will only pay fully until 2057. After that payments will begin being disbursed at 91% of what they are now.
The issues are coming from not so much the pandemic, but people living longer. There are less people being born putting money into the fund, and more people collecting from it.
Right now there are few solutions, but Congressman Dan Kildee says one of the weaknesses of Social Security is that tax collection stops once a person is making money in the range of $120,000.
Options include cutting benefits, which isn’t favorable, or have certain people up to a specific income eligible.