Social Security faces a more immediate threat than running out of money in 2034.
The Washington Post has reported in “Closed Social Security offices, furloughed staff under GOP cuts, agency warns,” that it is possible the Social Security Administration may not receive the funds it needs to operate in next year’s budget.
The Social Security trust fund is expected to run out of money in 2034 but a more immediate problem is the chance that it may not receive funding for its day-to-day operation, which must be approved by Congress and the President.
President Obama is proposing a budget for the agency that is $700 million more than House Republicans propose and $500 million more than Senate Republicans propose. The Social Security Administration believes the Republican proposals could jeopardize operations to such an extent that offices would have to close for two weeks and employees would need to be furloughed. People who receive Social Security benefits might have to wait longer for those benefits as well.
Of course, the agency’s objections could be political. What this shows is that it is not always the issues that get big headlines that could potentially jeopardize Social Security. There are other potential issues elder law advocates and seniors need to be aware of.
Reference: Washington Post (Aug. 9, 2016) “Closed Social Security offices, furloughed staff under GOP cuts, agency warns”