Social Security and Medicare Projections: 2008

Publication Date: April 2008

Publisher: National Center for Policy Analysis (U.S.)

Author(s): Pamela Villarreal

Research Area: Banking and finance; Government

Keywords: Medicare; "Social Security"

Type: Brief

Abstract:

The 2008 Social Security and Medicare Trustees Reports show the combined unfunded liability of these two programs has reached $101.7 trillion in today's dollars! That is more than seven times the size of the U.S. economy and 10 times the size of the outstanding national debt. The unfunded liability is the difference between the benefits that have been promised to retirees and what will be collected in dedicated taxes and Medicare premiums. Last year alone, the size of the debt rose by $11.5 trillion. If no other reform is enacted, this funding gap can only be closed in future years by substantial tax increases, large benefit cuts or both.