That ain’t the way it’s supposed to be!
One economist is sounding the alarm on social security, warning that the money supply, which provides a cushion for those retired Americans, could dry up in a decade
One economist is sounding the alarm on social security, warning that the money supply, which provides a cushion for those retired Americans, could dry up in a decade. According to FlaglerLive, the retirement and disability program has been running a cash-flow deficit since 2010.
While it currently sits at $2.7 trillion, Dennis W. Jansen has warned that the reserves are diminishing as the number of Americans getting benefits grows. According to Jansen, both of its trust funds would be completely drained by 2035.
“As an economist who studies the Social Security system, I am alarmed that Democratic and Republican administrations alike have failed for more than three decades to take the actions necessary to keep its funding on track, either by raising taxes or cutting benefits,” Jansen wrote. “Instead, Congress has only made the program’s funding outlook worse. And now, the Trump administration is reducing the program’s staff, sending confusing signals about changes it intends to make, and undercutting the quality of service for the people who are eligible for these benefits.”
According to the economist, roughly 67 million Americans, most of whom are 65 or older, received Social Security benefits in 2023. Jansen revealed that he had a plan to help increase the money supply going to the Social Security trusts.
Jansen stated that, in order to start the resupply of money, Congress must repeal the Social Security Fairness Act, which was signed into law by former President Joe Biden. After being signed into law, the measure ended the government’s prior practice of paying reduced Social Security benefits to retired teachers, firefighters and others who had pensions from their years of public service.
According to Jansen, it was reported by the Congressional Budget Office that this change will cause the trust fund to be depleted six months earlier than previously expected. Jansen added that, “any changes to Social Security should also help constrain the future growth of federal spending.”
“Any solutions that might be introduced gradually today will no longer be viable in 2035 if the trust fund has been completely hollowed out,” the economist said. “That would leave millions of older adults with lower incomes than they were counting on, plunging many of them into poverty.”
The dire predictions come as the federal government announced the dates of May’s social security checks. The Social Security Administration (SSA) gives financial support to citizens every month, depending on certain requirements. The payments can help people significantly, as it is directly added into beneficiaries’ bank accounts after they retire from work.
Based on May’s schedule, beneficiaries are set to receive multiple new payments. The first round of payments will be on Thursday, May 1st, ACS news reports. As first of June falls on a weekend, Beneficiaries will receive two payments in the month May.
On the 21st of the month, the third Wednesday of the month, beneficiaries born between May 11th and May 20th will receive their checks. To make sure payments are received on time, it is essential all details are updated correctly and verified.
Written by Jack Hobbs for The Mirror ~ May 4, 2025
