Tampa, FL (Law Firm Newswire) August 18, 2016 - New projections from trustees indicate that Social Security will begin to outspend its earnings by the end of the decade. The annual report cautioned that action was required sooner rather than later to boost funds and avoid disrupting the lives of millions of people who depend on the government program.
Social Security’s financial outlook remains unchanged from last year’s projection. The program is likely to run out of funds by 2034. The date applies to the Disability Insurance (DI) and Old-Age and Survivors Insurance trust funds. Trustees warned that Congress’ failure to act on DI solvency within the next seven years could result in a sweeping benefits cut across the board.
“If Social Security funds are allowed to deplete, millions of elderly and disabled Americans could suffer a detrimental slash in benefits,” said David W. Magann, a prominent attorney in Tampa, Florida, whose firm specializes in Social Security disability law. “Policymakers must address the solvency challenges facing the program. Careful management of resources through a combination of measures can help preserve the program for future generations.”
Around 11 million individuals received benefits from Social Security Disability Insurance in 2015. The aging of the population is a key force behind the program’s projected growth. As Americans age, more and more people become eligible for benefits.
The report predicted an estimated 0.2 increase in Social Security benefits after the official 2017 cost-of-living adjustment at yearend. Millions of Social Security recipients would get less than a $2.50 rise in monthly payments. Increases are dependent upon a government gauge of inflation, which has been low.
“Lawmakers should address these financial challenges as soon as possible,” the trustees’ report concluded. “Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare.”
David W. Magann, P.A.
156 W. Robertson St.
Brandon, FL 33511
Call: (813) 657-9175
4012 Gunn Highway #165
Tampa, Florida 33618
View Larger Map