The Social Security retirement trust fund, which provides monthly payments to retired workers, their families, and survivors of deceased workers, is expected to run short of funds months earlier than projected last year, according to the annual Social Security and Medicare trustees’ report. And without congressional action, younger generations could be left to pay the price.
The earlier depletion by 2033 is due, in part, to former President Joe Biden’s Social Security Fairness Act, which increased benefits for nearly 3 million current and former public sector workers who were not previously covered by Social Security. Other factors include the potential for the U.S.’s fertility rate to remain low, and that workers’ wages will also be lower than previously projected (meaning they are paying less into the program).
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