What The Trustees' Report Indicates About The Financial Status Of Social Security

Publication Date: March 2004

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Peter Orszag; Robert Greenstein

Research Area: Banking and finance

Keywords: Fiscal future; Economic projections; Senior citizen; Retirement

Type: Report

Abstract:

On March 23, the Social Security Board of Trustees released the 64th annual report on the program’s financial and actuarial status. This report shows no change from last year’s report with regard to the year in which the Social Security trust fund reserves are expected to run out. The projection remains that this will occur in 2042. After that year, the program will be able to pay about 70 percent of scheduled benefits, rather than full benefits. The report also shows that the trustees’ projection of the size of Social Security’s 75-year financing shortfall, measured both as a percentage of payroll and as a percentage of the economy, has decreased very slightly from the projection of a year ago.

The Social Security trustees’ report reaffirms that Social Security does not face a near-term crisis and can pay full benefits for the next 38 years but will eventually face a significant imbalance. The trustees’ report includes three dates related to the imbalance.