A Social Security press release (emphasis added):
The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, the same as projected last year, with 79 percent of benefits payable at that time.
The OASI Trust Fund is projected to become depleted in late 2034, as compared to last year’s estimate of early 2035, with 77 percent of benefits payable at that time. The DI Trust Fund will become depleted in 2032, extended from last year’s estimate of 2028, with 96 percent of benefits still payable.
In the 2018 Annual Report to Congress, the Trustees announced:
“The Trustees’ projected depletion date of the combined Social Security Trust Funds has not changed, and slightly more than three-fourths of benefits would still be payable after depletion,” said Nancy A. Berryhill, Acting Commissioner of Social Security. “But the fact remains that Congress can keep Social Security strong by taking action to ensure the future of the program.”
- The asset reserves of the combined OASDI Trust Funds increased by $44 billion in 2017 to a total of $2.89 trillion.
- The total annual cost of the program is projected to exceed total annual income in 2018 for the first time since 1982, and remain higher throughout the 75-year projection period. As a result, asset reserves are expected to decline during 2018. Social Security’s cost has exceeded its non-interest income since 2010.
- The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – the same as projected last year. At that time, there will be sufficient income coming in to pay 79 percent of scheduled benefits.
Other highlights of the Trustees Report include:
The Board of Trustees usually comprises six members. Four serve by virtue of their positions with the federal government: Steven T. Mnuchin, Secretary of the Treasury and Managing Trustee; Nancy A. Berryhill, Acting Commissioner of Social Security; Alex M. Azar II, Secretary of Health and Human Services; and R. Alexander Acosta, Secretary of Labor. The two public trustee positions are currently vacant.
- Total income, including interest, to the combined OASDI Trust Funds amounted to $997 billion in 2017. ($874 billion from net payroll tax contributions, $38 billion from taxation of benefits, and $85 billion in interest)
- Total expenditures from the combined OASDI Trust Funds amounted to more than $952 billion in 2017.
- Social Security paid benefits of more than $941 billion in calendar year 2017. There were about 62 million beneficiaries at the end of the calendar year.
- The projected actuarial deficit over the 75-year long-range period is 2.84 percent of taxable payroll – slightly larger than the 2.83 percent projected in last year’s report.
- During 2017, an estimated 174 million people had earnings covered by Social Security and paid payroll taxes.
- The cost of $6.5 billion to administer the Social Security program in 2017 was a very low 0.7 percent of total expenditures.
- The combined Trust Fund asset reserves earned interest at an effective annual rate of 3.0 percent in 2017.
View the 2018 Trustees Report at www.socialsecurity.gov/OACT/TR/2018/.
Under the Trustees' intermediate assumptions the Social Security program’s cost will exceed its income in 2018 for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits. see page 10.
ReplyDeleteSimply raise the wage cap, and there will be no funding problems for many years to come.
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ReplyDeleteTrue, but certain politicians and their backers (we know who they are) still cling to the fantasy that they can get away with cutting Social Security benefits while seeming like heroes for "saving" it. They refuse to take commonsense actions like raising the wage cap in order to manufacture a sense of crisis. Their vain hope is to create a climate where they can cut Social Security without committing political suicide. Want to fix Social Security's financial issues beyond 2034 without cutting the program so much that it would more accurately be called "Social Insecurity?" It will take voting enough of those people out of office so good ideas like raising the wage cap can pass.
Meanwhile I read a report yesterday that the Medicare Fund will hit its insolvency date a few years earlier than previously projected.
ReplyDeleteRaise taxes on the remaining Boomers to catch up what they cheated the rest of us on for the last 50 years.
ReplyDelete14 years out from depletion for disability and 16 years out for old age and survivor benefits so at least 8 years out from Congress acting.
ReplyDeleteDon't raise the wage cap. Make monthly benefits proportional to ss taxes paid. Thus now at full retirement age benefits are based on high 35 years and are calculated roughly at 90% of first 900, 35% of 900 to 4000 and 15% on Ave monthly wage over 4000. Why should this welfare be paid by only a tax paid by self employed, employees and employers? Have the "welfare" paid by those with capital gains,other investment income, rental income, and my favorite : oil royalty income. Also cover all employees including those in not for profits (including many colleges) and many gov employees excluded now, like teachers in many states. Make it a retirement system like fed civil service etc.. and benefit the workers and encourage working.
ReplyDeleteIn 2017, $38 billion collected from taxing Social Security benefits. That is a lot of money collected from those some would label as able to afford to pay more for the benefits they receive for decades of work. But is this just and fair?
ReplyDeleteFor single taxpayers, 50% of Social Security benefits may become taxable when their provisional income exceeds $25,000. For single retirees with provisional income over $34,000, up to 85% of Social Security benefits may be taxable. If you are a married taxpayer filing jointly and your total combined income is greater than $32,000, then up to 50% of your Social Security benefit may be taxable. If your total combined income is greater than $44,000, then up to 85% of your benefit may be taxable.
These tax thresholds were first effective in 1984 and were never changed. If indexed for inflation they would be over $60000 now! In 1984 it affected only high-income people; but now, due to inflation for the last 34 years it affects about half of Social Security recipients and continues to grow. This taxation can cause marginal tax rates on other income to be 50% or 85% percent higher than the individual's tax bracket rate over a substantial range of income.
It is long past time to correct this destructive tax policy concerning social security benefits.
9:11 so your basic thing is if you are old and unproductive you shouldn't have to pay taxes?
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