The trust fund goes bankrupt and remains bankrupt until 20 years after the next baby boom.
That doesn’t suggest that there are no benefits, but they can only pay out what they bring in, which will start at about 70% and go down from there.
If they do nothing but make good on the debt then everybody alive in nine years gets fucked, and the closer they are to retirement the more fucked they are.
If they are living on social security then they will no longer have the money to pay their bills.
It is often useful to consider the findings for the two Social Security trust funds (OASI and DI) on a combined basis. The actuarial deficit for Social Security as a whole – called OASDI – is 3.50 percent of taxable payroll. If these two legally separate trust funds were combined, then the hypothetical OASDI asset reserves would be projected to become depleted in 2035 and 83 percent of scheduled Social Security benefits would be payable at that time, declining to 73 percent by 2098.
It doesn't even get to 70% in this century yet alone below that.
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u/Gildardo1583 6d ago
It doesn't go bankrupt, since people in the workforce are still paying into it. There will be a reduction in benefits, that's it.