Social Security: Summary of Program Solvency and Projections

Publication Date: May 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

On March 23, 2005, the Social Security Board of Trustees released its annual report to Congress on the status of the Social Security trust funds. The Social Security trust funds, under the latest forecast, continue to face long-range financing problems. On a combined basis, the Old-Age, Survivors, and Disability Insurance (OASDI) trust funds are projected to be depleted in 2041 (which is one year earlier than the projection in last year's report).1 At that point, annual tax revenue would cover only 74% of program costs. Over the full 75-year projection period, the trust funds are projected to have an actuarial deficit equal to 1.92% of taxable payroll (compared to 1.89% in last year's report), and program expenditures are projected to exceed income by an average of 14%. This report will be updated annually, after the release of the annual report.