Social Security now expected to run short on funds in 2035, one year later than previously projected, Treasury says

The trust funds the Social Security Administration relies on to pay benefits are now projected to run out in 2035, one year later than previously projected, according to the annual trustees' report released Monday.

On the projected depletion date, 83% of benefits will be payable if Congress does not act sooner to prevent that shortfall.

The Social Security trustees credited the slightly improved outlook to more people contributing to the program amid a strong economy, low unemployment and higher job and wage growth. Last year, the trustees projected the program's funds would last through 2034, when 80% of benefits would be payable.

"This year's report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035," Social Security Commissioner Martin O'Malley said in a statement.

O'Malley, who was sworn in to lead the agency in December, also urged Congress to extend the trust fund's solvency "as it did in the past on a bipartisan basis."

"Eliminating the shortfall will bring peace of mind to Social Security's 70 million-plus beneficiaries, the 180 million workers and their families who contribute to Social Security, and the entire nation," O'Malley said.

Social Security's new 2035 depletion date applies to its combined trust funds.

The trust funds help pay for benefits when more money is needed beyond what is coming in through payroll taxes. Currently, 6.2% of workers' pay is taxed for Social Security, while an additional 1.45% is taxed for Medicare. The total 7.65% is typically matched by employers. High