Tuesday, July 28, 2015

New paper: “Social Security’s Financial Outlook: The 2015 Update in Perspective”

The Center for Retirement Research at Boston College has released a new Issue in Brief:

Social Security’s Financial Outlook: The 2015 Update in Perspective
by Alicia H. Munnell

The brief’s key findings are:
  • The 2015 Trustees Report shows little change from last year:
  • Social Security’s 75-year deficit declined modestly from 2.88 percent to 2.68 percent of payroll.
  • The deficit as a percent of GDP remains at about 1 percent.
  • Trust fund exhaustion moved back slightly from 2033 to 2034, after which payroll taxes still cover about three quarters of promised benefits.
  • The shortfall is manageable, but action should be taken soon to restore confidence in the program and give people time to adjust to needed changes.

·   In addition, the disability insurance program needs immediate attention, as its trust fund is expected to be exhausted next year.
This brief is available here

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