Social Security’s disability trust fund will run out of money next year, while its bigger retirement fund is slated to hit the red in 2034, the programs’ trustees reported Wednesday.
Without any changes, the disability program will have to cut back benefits next year, being able to pay only 81 percent of promised benefits.
But the old age and survivors fund, which accounts for most of Social Security, saw its prospects improve slightly over the last year, with its insolvency date rising a year to 2034. After that point, the program will be able to pay just 79 percent of promised benefits.
Both funds are taking in less each year in taxes than they pay out in benefits, but are being sustained by money from their trust funds and interest payments on those funds.