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Social Security will be able to pay full benefits for just another 12 years, according to new estimates released this week.
Experts, however. say that does not mean you should dramatically change your Social Security claiming strategy.
Each year, the Social Security Administration releases an annual trustees report regarding the status of the program. This year’s report was the first to show the effects the Covid-19 pandemic has had on the program’s funds, which were already running low.
The estimated dates for when those funds will stop being able to pay full benefits has been moved up. Now, the combined funds used to pay retirement, survivors and disability benefits will be able to continue to make full payments until 2034 — one year earlier than was projected last year.
Importantly, the program will still be able to pay 78% of benefits at that time.
How dire the program’s situation is depends upon whom you ask. But both optimistic and pessimistic experts see reason for hope with regard to the continued availability of benefits.
One reason for optimism is that lawmakers have traditionally stepped in to balance spending and revenues.
“Beneficiaries can be assured that pattern will continue,” Paul N. Van De Water, senior fellow at the Center on Budget and Policy Priorities, wrote this week.
However, Larry Kotlikoff, an economics professor at Boston University and…
