With the release of the 2020 Social Security Trust Fund Financial Operations report, Hans takes a look at the health of Social Security’s future, answering the big question: Is Social Security going to run out of money?
Board Transcript:
2020 Social Security Trust Fund Financial Operations (in billions):
OASI - Old-Age and Survivors Insurance / DI - Disability Insurance]
Asset reserves, end of 2019 … $2,804.3 / $93.1
Total Income in 2020 … $968.3 / $149.7 :
- Net payroll tax contributions … $856.0 / $145.3
- Interest … $73.3 / $2.8
- Taxation of benefits … $39.0 / $1.7
Total Cost of 2020 … $961.0 / $146.3
- Benefit payments … $952.4 / $143.6
- Administrative expenses … $3.7 / $2.6
- Railroad Retirement financial interchange … $$4.8 / $0.1
Net Increase in Asset Reserves, 2020 … $7.4 / $3.5
Asset Reserves, End of 2020 … $2,811.7 / $96.6
- Social Security Administration (SSA) announced Oct. 13th annual cost-of-living adjustment (COLA) of 5.9% starting in Jan. 2022
- Largest increase since the 7.4% hike in Jan. 1983
- COLAs have been modest, averaging a 1.65% increase over the past decade
Email: Hans@CardinalGuide.com
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