The US Department of the Treasury's annual report said that the Social Security trust fund will run out of money in 12 years, one year sooner than expected. The outlook, which was influenced by the COVID pandemic, also threatens to shrink retirement payments and increase health care costs for older Americans. Treasury Department officials detailed that the Old Age and Survivors trust fund is now able to pay scheduled benefits until only 2033, a year sooner than reported last year. The Disability Insurance fund is estimated to be adequately funded through only 2057, eight years shy of the date published in 2020.
Source: MFS Investment Management