ABSTRACT

Social Security: Demographic Trends and the Funding Shortfall [November 4, 2019]   [open pdf - 0B]

From the Introduction: "The Social Security program, or Old-Age, Survivors, and Disability Insurance (OASDI), pays monthly benefits to retired or disabled workers and their families and to the family members of deceased workers. The OASDI program's ability to meet scheduled benefit payments rests upon sufficient revenues from payroll taxes, taxation on Social Security benefits, and interest earned on trust funds assets. The year 2020 marks the first since 1982 in which the OASDI program's total cost is projected to be greater than its total income. [...] The OASDI program can pay scheduled benefits while operating with a cash flow deficit (i.e., costs exceed revenues) during periods of positive trust funds balances because assets held in the trust funds can be redeemed to augment continuing income. However, this process cannot last indefinitely. As shown in Figure 1, a cash flow deficit is projected to persist throughout the 75- year projection period (2019-2093). This report presents data showing that the projected deficits are the result of rising costs associated with demographic changes, outlines how these demographic changes will impact the OASDI program's ability to fulfill benefit payments, and discusses some options policymakers have to address the program's financial shortfall."

Report Number:
CRS Report for Congress, R45990
Author:
Publisher:
Date:
2019-11-04
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Media Type:
application/pdf
URL:
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