Social Security Now Headed For Insolvency Even Sooner Than Expected
Social Security will be unable to pay full retirement benefits by 2034, one year earlier than previously projected, according to a new report released Wednesday by the Social Security Board of Trustees. The updated…
Social Security will be unable to pay full retirement benefits by 2034, one year earlier than previously projected, according to a new report released Wednesday by the Social Security Board of Trustees.
The updated annual forecast cites multiple factors for the worsening outlook, including population trends and a recent expansion of benefits for certain public-sector retirees. Without reform, beneficiaries could see a 19% cut in their payments within the next decade, the report found.
“Congress can’t keep dodging entitlement reform. Social Security’s $28 trillion in unfunded liabilities is about the same size as America’s entire GDP,” Ryan Young, senior economist at the Competitive Enterprise Institute, told the Daily Caller News Foundation. “The problem is structural, and will not improve on its own.”
Social Security spending is projected to reach 6% of the GDP by 2035, but the Trump administration and congressional GOP leadership have pledged not to touch benefits. Even broaching this topic may prove politically perilous