Digital News Report – The Social Security Administration released their annual report of the outlook for the Social Security Trust Funds today. The report says that the money in the trust fund will be exhausted by 2037.
The short-range outlook will have the fund paying out more than what is projected for tax revenues for 2010 and 2011. The funds will use less than the tax revenues coming in for 2012 through 2014. In 2015, the fund will permanently exceed the tax revenues which is moved up one year earlier than last years report. The reason for the change is because of the the recession.
In 2037, the money in the fund will be gone and the Social Security report says that they expect around 78 percent pay out of benefits will come from tax revenue. In the next 75 years, the Social Security Trust Fund would need to have an additional revenue of $5.4 trillion in current US dollar value in order to pay everyone scheduled disability and retirement benefits as planned.
Michael J. Astrue, Commissioner of Social Security, explained that the shortfall this year shouldn’t cause panic, but he also said, “ that it’s time for us to make the tough choices that we know we need to make.”
President Obama has created the Deficit Commission in order to address the shortages that the Social Security Trust Fund faces in the years to come.
By: Victoria Brown