Social Security's potential insolvency date moves up a year to 2034

(NewsNation) — Social Security’s trust funds, which cover old-age and disability recipients, will be unable to pay full benefits starting in 2034, a year earlier than previous projections, according to an annual report released Wednesday.

After that point, Social Security would only be able to pay 81% of scheduled benefits — a significant cut to the monthly checks millions of Americans rely on.

Last year's estimate from the program’s trustees put the Social Security go-broke date at 2035, but the Social Security Fairness Act, enacted in January, increased benefits for many and is one of the reasons the projected depletion date has moved up.

The new 2034 projection assumes Social Security's two trust funds are combined, something that would require a change in law. As it stands, the retirement fund on its own is expected to be depleted by 2033, at which point only 77% of scheduled benefits would be payable.

While the latest forecast highlights the program's troubling finances, it comes as no surprise. Congress has roughly a decade to stabilize the nation's retirement program, but the task becomes more complex the longer action is delayed.

"There is no question Congress will act to avert the shortfall, as it always has in the past. The question is what Congress will do," Nancy Altman, president of Social Security Works, an advocacy group for the program, said in a statement.

Altman said there are two options for action: "Bringing more money into Social Security, or reducing benefits. Any politician who doesn’t support increasing Social Security’s revenue is, by default, supporting benefit cuts.”

Last month, nearly 70 million people received Social Security benefits, including about 53 million retirees, seven million disabled workers, and over two million children of deceased workers.

Social Security is one of the most popular programs in the country, which is part of the reason politicians have been so reluctant to make changes. For decades, lawmakers have kicked the can down the road despite well-known and mounting financial challenges.

Wednesday's updated projection suggests the time to act may come sooner than previously thought.