The U.S. Government made the announcement that the fund will run dry three years sooner than originally projected based on the budget outlook.
Over 44 million senior citizens and survivors of deceased count on the fund for financial benefits but as program trustees announced in their annual report several weeks ago, if Congress does not intervene on the program’s budget their will be cuts in aid.
The Social Security Disability program assists 11 million Americans is scheduled to run out in its trust fund in 2016. All of which is attributable to the stress on a week economy.
The Social Security program’s main trust fund, Medicare health-care program for the elderly is schedule to run out of funds by 2024.
The issue of funds and its budget stressing retirement programs has become the central issue for this election-year debate platform among both Democrats and Republicans.
“Millions of Americans rely on Social Security and Medicare for income and for health care, and millions more will do so in the future,” said Treasury Secretary Timothy Geithner, one of the programs’ six trustees. “These programs have the resources they need to fulfill their commitments to the American people for years to come. But what these reports also reinforce is that we must take steps to keep these programs whole for the future.”
The proposed combing the trust funds of social security with retirement disability would cause a depletion by 2033. Upon that there would only be enough in the trust account to cover only three-quarters of those schedule for receipt of benefits.
Other factors as cost of living adjustments (3.6%), more than double the expected rate of 1.8%, along with an increase in the enrollment in disability insurance programs have been a major impact to the fund.
“The DI program faces the most immediate financing shortfall of any of the separate trust funds,” the report said. “Thus lawmakers need to act soon to avoid reduced payments to DI beneficiaries four years from now.”