2035: Social Security benefits face cuts

Social Security fund extends deadline, still isn't forever

The Social Security Administration announced Monday that its funds will cover scheduled benefits and costs until 2035, a year later than the 2023 report projected.

"This year's report is a measure of good news for the millions of Americans who depend on Social Security...any potential benefit reduction event has been pushed off from 2034 to 2035," says Commissioner of Social Security, Martin O'Malley.

O'Malley credits strong economic policies, wage growth, and low unemployment rates as key factors in this positive revision.

But it's not all good news:

• The Old-Age and Survivors Insurance (OASI) Trust Fund will only cover full benefits until 2033, after which a 21% benefit reduction is expected.
• While the Disability Insurance (DI) Trust Fund can pay full benefits until 2098, combining the two funds (which can't legally be done without legislative changes) would result in full payments until 2035, and an 18% reduction thereafter.
• The Hospital Insurance Trust Fund for Medicare, meanwhile, has an expiration date of 2036, after which only 89% of benefits would be covered.

Political Responses:

"Lawmakers have many options for changes that would reduce or eliminate the long-term financing shortfalls," states the SSA, urging early action.

"Medicare is stronger and Social Security remains strong. I will keep strengthening Social Security and Medicare and protecting them from Republicans' attempts to cut benefits Americans have earned," vows President Biden.

By Gabe Hauari, a national trending news reporter at USA TODAY. Follow him on Twitter @GabeHauari or email: Gdhauari@gannett.com