Industry News

Recently, the American Academy of Actuaries released its issue brief, Reforming Social Security Sooner Rather Than Later. The brief indicates that the 2023 Social Security Trustees Report projects that the combined trust fund reserves (Old-Age Survivors Insurance Trust Fund and the Disability Insurance Trust Fund) are projected to become depleted in 2034. At that time, its income would only be able to pay 80% of the benefits scheduled for its 80 million beneficiaries.

According to the brief, “If Congress has not acted by 2034, we will be faced with an automatic 20% cut in benefits to people already receiving benefits, the need to immediately increase Social Security taxes by 25%, or some combination of benefit cuts and tax increases.”  It adds, “Earlier reform action would allow for tax increases and benefit reductions to be phased in gradually and provide individuals more time to plan and adjust to the changes.”

The issue brief is available here.