A new government report shows that the Social Security system’s main trust fund will be depleted by 2033, one year sooner than a prior estimate, adding to concerns about the fund’s solvency.
The Treasury Department has released a report following a meeting of the Social Security Board of Trustees, in which it warns that the federal Old-Age and Survivors Insurance (OASI) Trust Fund will become “inadequate” within the next 10 years.
The OASI trust fund is primarily used to pay retirement, spousal, and survivor benefits to eligible individuals and their families.
A report detailing the Trustees’ findings (pdf) shows that the worsened financial situation of Social Security is mostly because of a deteriorating economic picture, in part due to inflation. Projections for economic output and labor productivity have been downgraded by around 3 percent compared to last year’s estimates, bringing forward the date by which the fund will run out of money….