The head of the Congressional Budget Office, Phillip Swagel, said this week that Social Security funds may start running out by 2032, or a year earlier than previously expected by the CBO.
In December, CBO estimated that the Social Security trust funds will evaporate by 2033. But Swagel said that a new analysis suggests it may dry up before 2032, which marks the end of the budget window, according to December’s report.
“The Social Security solvency date—the exhaustion date for the trust fund—is now within the budget window,” CBO Director Phillip Swagel told reporters this week.
Swagel made reference to last year’s decision from the Social Security Administration to make an 8.7 percent cost-of-living adjustment (COLA) for 2023’s Social Security payments. The administration hiked the COLA due to decades-high inflation, which soared to over 9 percent during a period last year….