Social Security Will Be Bankrupt By 2033 On Current Trajectory
Congressional Budget Office Report
Post by Tyler Durden | Written by Naveen Anthrapully via The Epoch Times
A recent report by the Congressional Budget Office (CBO) projects that two major Social Security funds in the United States will dry up in the coming decades, with one of them running out within the next 10 years as younger members in the programs are set to lose more than older members.
“If the gap between the trust funds’ outlays and income occurs as CBO projects, then the balance in the trust funds will decline to zero in 2033 and the Social Security Administration will no longer be able to pay full benefits when they are due,” the CBO stated in its report, published in December (pdf).
The Old-Age and Survivors Insurance Trust Fund will be exhausted in 2033 and the Disability Insurance Trust Fund will be exhausted in 2048, the agency said. If the trust funds are combined, the money will be gone by 2033.
The CBO expects spending on Social Security to increase to 7 percent of U.S. gross domestic product (GDP) in 2096, up from 5 percent of the GDP in 2022.
During this period, revenues are only expected to remain at 4.6 percent of GDP, resulting in an ongoing deficit.
If Social Security outlays were limited to what is payable from annual tax revenues, the benefit payments would be roughly 23 percent smaller than originally scheduled by 2034. By 2096, the benefit payments would be 35 percent smaller, with the gap remaining stable from then on.
In such a situation, the younger cohort born in the 1970s, 80s, and 90s would see their initial benefits reduced by 24, 27, and 28 percent respectively. Their lifetime benefits would be reduced by 26, 27, and 27 percent, respectively.
For older beneficiaries born in the 1950s and 60s, initial benefits would not be affected too much. Their lifetime benefits would be reduced by 9 percent and 19 percent, respectively.
Protecting Social Security of Senior Citizens
In 2021, Social Security amounted to 17 percent of federal spending, according to the CBO. Lawmakers are currently debating how to address America’s debt ceiling issue, with some proposing cuts to Social Security. The United States officially hit its debt limit on Thursday.
In a video message, former President Donald Trump called on GOP members to not compromise on Social Security.
“Under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security to help pay for Joe Biden’s reckless spending spree, which is more reckless than anybody’s ever done or had in the history of our country,” Trump said in the statement posted to Truth Social on Friday.
“Do not cut the benefits our seniors worked for and paid for their entire lives,” he said. “Save Social Security. Don’t destroy it.”
The CBO projections come as Social Security benefits are set to increase by 8.7 percent in 2023, which is the biggest boost in four decades. In 2022, benefit payments were increased by 5.9 percent.
Despite the record increase in benefit payments this year, there are concerns about whether it will be enough to keep up with decades-high inflation.
*********
(TLB) published this article as posted by Tyler Durden and written by Naveen Anthrapully via The Epoch Times
Header featured image (edited) credit: SS Card/orginal Epoch Tiomes post
Emphasis added by )TLB) editors
••••
••••
Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.
Leave a Reply