Social Security's insolvency date is now a year earlier

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Social Security is on track to deplete its trust fund by 2034, one year sooner than previously forecast,
when the federal retirement program will be required to cut monthly benefits by about 20%. 

The new projection, issued Wednesday in the Social Security Board of Trustees' annual report, is partly due to increased costs from the Social Security Fairness Act, which boosted benefits for millions of retirees, the report said. Last year's report had forecast that the program would need to cut benefits starting in 2035, impacting Social Security's 70 million beneficiaries.

The Social Security program has been staring down a financial crunch for years, although the trust fund's depletion date can change from year to year due to fluctuations in the economy and the number of beneficiaries. The trust fund is slated to be depleted partly due to the wave of baby boomer retirements and an aging U.S. population, which means its reserves are drawing down because spending is outpacing income.

"Congress, along with the Social Security Administration and others committed to eliminating waste, fraud and abuse, must work together to protect and strengthen the trust funds for the millions of Americans who rely on it — now and in the future — for a secure retirement or in the event of a disability," said Frank Bisignano, commissioner of Social Security, in a statement.

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