Reckless spending has been driving Social Security toward a fiscal cliff. Scheduled benefits will have to be cut by 23 percent in 2033 to keep the program solvent.
This is the grim conclusion drawn by the trustees of Social Security's Old-Age and Survivors Insurance and Disability Insurance (OASDI) trust funds, who published their annual report this week. OASDI comprises two trust funds, but the main one—the Old-Age and Survivors Insurance (OASI) trust fund—is on track to be depleted in 2033. That means all retirees receiving benefits in that year will face a 23 percent cut to their monthly checks.
The trustees' report also warns that OASDI will become insolvent in 2034. The trustees calculate this earlier depletion date in part because of a law Congress passed late last year to expand Social Security benefits to some workers who previously did not receive them.
