Social Security Costs Expected to Exceed Total Income in 2021 as Covid-19 Takes Financial Toll

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Social Security Costs Expected to Exceed Total Income in 2021 as Covid-19 Takes Financial Toll
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Social Security reserves are expected to be depleted by 2034, one year sooner than previously estimated

WASHINGTON—The severe economic downturn caused by the Covid-19 pandemic last year weighed on the financial health of Social Security, but not nearly as much as many forecasters originally feared, according to new projections of the program’s finances.

Trustees for the Social Security trust fund in an annual report released Tuesday said the program is expected to pay benefits that exceed its income in 2021, the same as it anticipated last year at the outset of the pandemic.

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