Social Security costs to exceed revenue for 1st time in 39 years

For the first time in 39 years, Social Security payments made to retired Americans this year, and every year after, will be greater than the payments it receives.

For the first time in 39 years, Social Security payments made to retired Americans this year, and every year after, will exceed tax revenues coming into the federal government in the wake of the coronavirus pandemic's economic downturn, according to a new government report. Social Security payments for retired Americans will be exhausted in 2034 — a year earlier than previously predicted, says the 2021 report from the Social Security and Medicare Boards of Trustees, which oversees both programs. After that, tax incomes will only cover 76% of anticipated benefit needs. As for Social Security’s disability insurance program, those funds will run dry in 2057 — eight years earlier than previously predicted. The recession and increased mortality rate due to the COVID-19 pandemic are the main factors driving the earlier depletion of funds, according to the report — the red flags adding to the pressure for federal lawmakers to act as a wave of retiring baby boomers and the pandemic's new variants are sure to put more strain on an already stressed system. The report says last year’s Social Security income exceeded costs by $11 billion. When excluding interest earned on the program’s trust fund assets, the program’s deficit is $65 billion.