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Retired Americans have reason to be concerned, as according to a report from Social Security trust administrators, the Retiree Trust Fund will run out of resources in 2033. Situation that
turns on the alarms for those involved .
According to the administrators’ report, the tax revenues that support the Old Age and Survivors Insurance Trust Fund (OASI) will cover only 76% of your scheduled benefits after that year.
On the other hand, the Disability Insurance Trust Fund (DI) , which provides disability benefits, will have resources available until 2057, eight years earlier than last year’s projection.
The limiting the resources that guarantee the sustenance of pensions, is not only affecting those who are retired or those who plan to do so soon, since, according to estimates, there is also a negative impact on Medicare, which would run out of funding for 2026 .
According to the report of the fund managers, the finances of both programs have been significantly affected and their continuity is in doubt due to the impact of the pandemic and the economic recession of the 2020.
For funds to be sustainable, income from working life, millions of jobs were lost last year. Additionally, interest rates and economic growth plummeted in the second quarter from 2020.
To avoid the collapse of funds and that they do not affect public finances, it is expected that drastic measures will be taken from Congress, which would not be to the liking of the Americans if it is assumed that a possible solution is to increase the payroll tax.
Another option to solve this situation, according to experts, is for the government to acquire debt to cover the deficit that is being projected. This situation may not be the most viable if it starts from the fact that public debt has increased significantly in recent years .
Even last week Don Kohn, former vice president of financial supervision at the Federal Reserve, said there have been raised to historical highs and the public and private debt in the country, reaching record levels in relation to the size of the economy, for which called for measures to be taken to avoid a crisis.
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