The social security office released the April 2024 snapshot and it’s a jumbo jump in enrollments. For April 2024, there were 195,000 new social security enrollees over the age of 65. A jump from 148,000 in March! The current monthly cost of the current benefits is $120.2 billion according to the social security snapshot.
We expect the social security enrollments to balloon over the next 7 years as all baby boomers will hit age 65 by 2030 so the numbers will start to trend upward faster and higher.
Trustees Report Summary
The annual Trustees Report Summary for social security reports that 2033 is the current insolvency rate for social security. From the Trustees:
A MESSAGE TO THE PUBLIC:
The Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs each year. This document summarizes the findings of the 2024 reports. As in prior years, we found that the Social Security and Medicare programs both continue to face significant financing issues.
Based on our best estimates, this year’s reports show that:
• The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, unchanged from last year’s report. At that time, the fund’s reserves will become depleted and continuing program income will be sufficient to pay 79 percent of scheduled benefits.
• The Disability Insurance (DI) Trust Fund is projected to be able to pay 100 percent of total scheduled benefits through at least 2098, the last year of this report’s projection period. Last year’s report projected that the DI Trust Fund would be able to pay scheduled benefits through at least 2097, the last year of that report’s projection period.
On average 120,000 baby boomers retired every month in 2023. Unfortunately not all baby boomers have enough money to retire so they will be heavily dependent on social programs to get by day to day.
The BLS released the April 2024 PPI report and it showed producer inflation is still hot and perhaps the huge number of people leaving the labor force might have something to do with it.
We’ll keep an eye on social security enrollments in 2024 so stay tuned, stay profitable and stay solvent…