task0778
Diamond Member
Each year the trustees for the SSTF are required to publish a report to the President and the Congress on the financial condition of the SSTF. This year it came out last friday afternoon, and it ain't good. Excerpts:
The Social Security report finds that the "trust fund" will run out of money in just 17 years. The news only gets worse from there.
The program's unfunded liability over the next 75 years is now $12.5 trillion, which is up from $11.4 trillion last year and $4.7 trillion a decade ago. In other words, Social Security's long-term unfunded liability has increased by 166% in the span of 10 years.
And on a cash flow basis, Social Security is now losing money every year. Last year it was $54 billion in the red. In a decade the annual shortfall will reach $215 billion – after adjusting for inflation.
What it basically means is that unless the SSA program is changed, the checks that SSTF beneficiaries will get will be reduced significantly. If you add in the Disability Insurance (DI) into the mix you get the total OASDI program: (OAS - Old Age & Survivors)
The Trustees also project that annual cost for the OASDI program will exceed non-interest income throughout the projection period, and will exceed total income beginning in 2022 under the intermediate assumptions. The projected hypothetical combined OASI and DI Trust Fund asset reserves increase through 2021, begin to decline in 2022, and become depleted and unable to pay scheduled benefits in full on a timely basis in 2034. At the time of depletion of these combined reserves, continuing income to the combined trust funds would be sufficient to pay 77 percent of scheduled benefits.
The good news is that this problem can be averted. It's called "the Chilean Model," as 2012 presidential candidate Herman Cain put it, in what was his effort to get the voters to get serious about the issue.
The Chilean Model, the system of private savings accounts for retirement, is practiced in 30 countries. It was developed on a nationwide scale by José Piñera, the former labor minister of Chile during the 1970s, when the country was a socialist rubble and the coffers were bare, and it has worked every time it's been tried.
https://www.ssa.gov/OACT/TR/2017/tr2017.pdf
The Social Security report finds that the "trust fund" will run out of money in just 17 years. The news only gets worse from there.
The program's unfunded liability over the next 75 years is now $12.5 trillion, which is up from $11.4 trillion last year and $4.7 trillion a decade ago. In other words, Social Security's long-term unfunded liability has increased by 166% in the span of 10 years.
And on a cash flow basis, Social Security is now losing money every year. Last year it was $54 billion in the red. In a decade the annual shortfall will reach $215 billion – after adjusting for inflation.
What it basically means is that unless the SSA program is changed, the checks that SSTF beneficiaries will get will be reduced significantly. If you add in the Disability Insurance (DI) into the mix you get the total OASDI program: (OAS - Old Age & Survivors)
The Trustees also project that annual cost for the OASDI program will exceed non-interest income throughout the projection period, and will exceed total income beginning in 2022 under the intermediate assumptions. The projected hypothetical combined OASI and DI Trust Fund asset reserves increase through 2021, begin to decline in 2022, and become depleted and unable to pay scheduled benefits in full on a timely basis in 2034. At the time of depletion of these combined reserves, continuing income to the combined trust funds would be sufficient to pay 77 percent of scheduled benefits.
The good news is that this problem can be averted. It's called "the Chilean Model," as 2012 presidential candidate Herman Cain put it, in what was his effort to get the voters to get serious about the issue.
The Chilean Model, the system of private savings accounts for retirement, is practiced in 30 countries. It was developed on a nationwide scale by José Piñera, the former labor minister of Chile during the 1970s, when the country was a socialist rubble and the coffers were bare, and it has worked every time it's been tried.
https://www.ssa.gov/OACT/TR/2017/tr2017.pdf
