Social Security retirement and disability benefits recipients and their families have been concerned over news that the Social Security system will this year for the first time in 25 years pay out more than it brings in.
This information is courtesy of the Congressional Budget Office, which revealed that the spike in Social Security disability claims from hundreds of thousands of workers unexpectedly filed for either retirement or disability claims earlier than was expected. Not only that, but there are now fewer paychecks to task because unemployment levels have been so high.
If everything had gone according to expectations, the SSA would have had a surplus for six more years. The struggling economy, however, has changed that scenario and as of this year the SSA will be running a deficit.
Retirees and Social Security disability benefit recipients should be reassured that they will not see any changes to their benefits because of this. All benefits will continue to be paid as usual. In fact, current projections show that the SSA will have funds through 2037.
However, reform is necessary so that 2037 does not arrive to see Social Security benefits run out completely. The picture for Social Security could also brighten if the economy begins to turn around and there are more paychecks to tax and fewer new applicants for disability and retirement benefits.