You would think telling Americans the truth about the financial state Social Security would be easy and straightforward, but it’s not. There are individuals and groups with their own agenda who mislead and intentionally lie.
One of the worst in my opinion is SocialSecurityWorks which even today claims there is money to expand SS and in the past has insisted SS has a surplus.
The fact is the SS trusts are running out of money and the payment of full earned benefits cannot be sustained without changes. Incoming taxes will always allow payment of some benefits, but not all those earned.
Making SS fully sustainable is not that hard. If Americans were simply told the truth and Congress made the necessary changes, we would then be able to rationally talk about expanding benefits.
“Social Security’s total cost is projected to exceed its total income (including interest) in 2020 for the first time since 1982, and to remain higher throughout the remainder of the projection period. Social Security’s cost will be financed with a combination of non-interest (tax) income, interest income, and net redemptions of trust fund asset reserves from the General Fund of the Treasury until 2035 when the OASDI reserves will become depleted. Thereafter, scheduled tax income is projected to be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2093. The ratio of reserves to one year’s projected cost (the combined trust fund ratio) peaked in 2008, generally declined through 2018, and is expected to decline steadily until the trust fund reserves are depleted in 2035.” Summary from Trustee Report.
Categories: Social Security