How the Covid-19 Pandemic Impacted Social Security Solvency

The latest report from the Board of Trustees of Social Security extended the lifespan of the Social Security trust fund by one year — to 2034. This surprised many experts who feared the pandemic and resulting record-high unemployment figures would speed up the depletion date because payroll taxes were greatly reduced. As Forbes reports, the resulting recession was short and not as many people claimed benefits because the Social Security offices were temporarily closed, so the trust fund was able to rebound a bit.

Currently, the retirement trust fund, officially known as the Old Age and Survivors Insurance trust fund, is projected to run out of assets in 2034, one year later than was estimated last year. There are bills in Congress that would extend it for decades. The Seniors Trust supports the Social Security Expansion Act. It would extend Social Security’s solvency for 75 years and increase benefits by $2,400 per year. As an added bonus, it would also establish a fairer cost-of-living adjustment (COLA) which would put more money in retirees’ pockets each year.