This week, the Social Security Board of Trustees announced in its annual report that the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2034, one year sooner than projected, with 78 percent of benefits payable at that time.
“The Trustees’ projections in this year’s report include the best estimates of the effects of the COVID-19 pandemic on the Social Security program,” said Kilolo Kijakazi, Acting Commissioner of Social Security. “The pandemic and its economic impact have had an effect on Social Security’s Trust Funds, and the future course of the pandemic is still uncertain. Yet, Social Security will continue to play a critical role in the lives of 65 million beneficiaries and 176 million workers and their families during 2021.”
The report reflects expectations that COVID-19 has permanently lowered worker productivity — and gross domestic product (GDP), a benchmark for economic output — by one percent. It also takes into account projections for elevated pandemic-related mortality rates through 2023 and lower immigration and childbearing in 2021 and 2022. Download the full report.