The Social Security Trust Fund will not have enough money by 2034 to pay full benefits unless Congress takes action, according to new projections that have alarmed Kentucky’s aging population. Public News Service reported that the system’s surplus will fall short by about 20 percent in less than a decade, requiring lawmakers to address the program’s long-term viability. Social Security’s trustees project that when the combined trust funds deplete in 2034, only about 83 percent of scheduled benefits will be payable from incoming payroll tax revenue. The retirement fund alone faces a more urgent crisis, expected to run dry in late 2032, at which point only 78 percent of retirement benefits could be paid. Scott Wegenast, associate state director for AARP Kentucky, called the latest projections “a wake-up call for lawmakers.” “Congress needs to act to fill this 20% gap before 2034,” Wegenast said, warning that without action, Social Security would have only 80 percent of the money needed to make full benefit payments. For Kentucky, the stakes are particularly high. More than 1 million Kentuckians received about $20 billion in Social Security benefits in 2023, with recipients averaging $1,700 per month. The state’s disability beneficiaries received an average of $1,300 monthly. Nearly half of Kentuckians over age 65 would be living in poverty without Social Security payments, according to analysis cited in the original report. The economic impact of potential benefit cuts would ripple through Kentucky’s communities. Social Security pumps approximately $21 billion annually into the state’s economy, particularly supporting rural counties with older populations. The multiplier effect means that benefits recipients spend their payments locally, generating additional economic activity and supporting jobs throughout the state. A typical couple retiring in 2033 would face a reduction of more than $1,800 in annual benefits under current projections, according to analysis by the Committee for a Responsible Budget. The impact would be devastating for low-income seniors who depend entirely on Social Security to cover basic living expenses. Congress has previously acted to shore up Social Security’s finances and has multiple policy options available, from increasing the payroll tax cap to gradually raising the full retirement age. Experts say modest adjustments made soon could prevent automatic cuts that would occur if the trust funds are depleted. This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Public News Service – Kentucky, enriched with 2 web searches. The original source is available at https://app.publicnewsservice.org/story/kentucky-retirees-worried-about-depleted-social-security-funds/809ddd9c-60dd-496d-9185-57ae5148969b. View in feeds The post Kentucky retirees face uncertain future as Social Security funds near depletion appeared first on The Lexington Times. ...read more read less