Sunday, October 14, 2012

New Social Security projections from CBO

The Congressional Budget Office has released its latest projections for the financial health of the Social Security program. Among the highlights:

- DI Trust Fund exhausted in 2016

- OASI TF exhausted in 2038

- Combined OASDI trust fund exhausted in 2034

- The 75-year imbalance is 2.4% of taxable payroll

- Payable benefits will be 19% lower than scheduled benefits

These projections are similar to those made by Social Security’s Trustees as part of their annual report.

1 comment:

WilliamLarsen said...

If the 75 year time horizon imbalance is 2.4%, what is the 75 year imbalance following 2085?

The 75 year time frame ignores 75% if not more of the "earned" benefits of those who wages are taxed and used to fund beneficiaries, but who they themselves will not be beneficiaries and those who will be receiving benefits when the 75 time horizon EXPIRES.

The shortfall will be no where close to 2.4% of taxable payroll.

No wonder nothing is being done. Too many people sugar coating the problem and not being honest.