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.