Pamela Kweller RSSA Staff
On April 22, 2020 the Social Security Board of Trustees released its annual report, sharing its findings regarding the long-term financial status of the Social Security Trust Funds.
The two trust funds are the OASI Trust Fund and the DI Trust Fund. The OASI Trust Fund stands for the Old-Age & Survivors Insurance Trust Fund. The DI Trust Fund stands for the Disability Insurance Trust Fund.
Many of the findings and projections reported are very similar to last year’s findings. However, it is important to note that these 2020 projections do not reflect the potential effects of the COVID-19 pandemic.
2020 Annual Report’s Major Findings:
- The combined OASI and DI Trust Funds are projected to become depleted in 2035
- The OASI Fund is projected to become depleted in 2034
- The DI Fund is projected to become depleted in 2065
- The combined Funds have a total reserve of $2.89 trillion.
- The total annual cost of the program is projected to exceed total annual income beginning in 2021, resulting in reserves projected to decline in 2021
- The total income to the combined Trust Funds totaled $1.062 trillion in 2019
- Social Security paid $1.048 trillion of benefits in 2019
- There were 64 million beneficiaries in 2019
Good news:
Social Security’s large reserve of $2.89 trillion is readily available. It ensures that beneficiaries will be paid their full benefits and will be paid on time even when our country faces a crisis, such as the pandemic we are currently fighting.
Bad, but not so bad, news:
Social Security’s reserves won’t last forever. The reserves are projected to become depleted by 2035. However, there are many solutions and there have been many proposals to protect the solvency of the Social Security program. Congress can take action and make changes to ensure a strong future for the Social Security program.