The Social Security Administration is preparing to send out increased payments for 2025 due to a cost-of-living adjustment, which will raise benefits by 2.5% next year. However, the trust funds for paying full benefits are expected to run out in the near future. According to the Social Security Board of Trustees, the Old-Age and Survivors Insurance Trust Fund can only pay 100% of benefits through 2033. The Disability Insurance Trust Fund will be able to cover payments until at least 2098, while the Hospital Insurance Trust Fund will last until 2036.
The trust funds’ depletion will result in incomplete payments for recipients. To address this issue, lawmakers have several options to reduce financial deficits, including raising the payroll tax rate, increasing wages subject to Social Security contributions, and reducing annual cost-of-living adjustments. Implementing these measures can help prevent the fund from running out of money.
Source: https://en.as.com/latest_news/goodbye-to-full-social-security-payments-ssa-reveals-when-funds-will-run-out-n