Social Security’s Future
The problem and the proposals
Recent reports have raised new concerns about the impending insolvency of the Social Security program, absent congressional action. Social Security reform has long been considered a “third rail” of American politics and understandably so, the options for heading off insolvency will inevitably cause pain for significant segments of the population. Yet, some in Congress have stepped forward with proposals that aim to tackle the problem.
The impending shortfall (2032)
Social Security currently provides benefits to more than 66 million recipients. The Congressional Budget Office (CBO) estimates that about 78 million people, or about 20 percent of the U.S. population, will receive benefits from the Old-Age and Survivors Insurance (OASI) Trust Fund in 2032.
The CBO and the trustees of the Social Security and Medicare trusts have both raised alarms about how soon Social Security will become “insolvent.” Insolvency in this context refers to the point at which the trust fund will be depleted, and payments would come solely from income generated by payroll tax and income tax on benefits.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.