The H Group Blog

Investment and Financial Planning news from some of the best in the business.

How is Social Security Doing?

How is Social Security Doing?

Ron Kelemen - Tuesday, July 18, 2017

Every July the trustees of the Social Security Trust Funds for the Old-Age & Survivors and Disability Insurance (OASDI) release their annual report on the health and long-range outlook of Social Security. The projections are based on numerous actuarial assumptions, which you can find in their 2017 Trustees Report. (The ones in the figure below are their intermediate assumptions.) The good news is that more money is still coming into the funds than going out. Payments to beneficiaries come from these reserves, interest earnings, and payroll taxes. The reserves will be depleted by 2034, the same as projected last year. At that time, benefits can only be paid by incoming payroll taxes, projected to be 77% of what beneficiaries are scheduled to receive. That is if nothing is done between now and then. The report projects that increasing the payroll tax by 2.83% could extend the longevity of the trust fund to 2090 and beyond. But more likely, a combination of fixes could accomplish the same thing. So, ignore the scare rhetoric about Social Security going bankrupt. Beneficiaries will still get full benefits through 2034, then about 23% less after that. In our opinion, It's still a good deal.

OASDI Income, Cost, & Expenditures and Percentages of Taxable Payroll

Source: 2017 Social Security Trustee Report.

Trackback Link
Post has no trackbacks.

Recent Posts


Government regulation Elections Chicago PMI Economic Indicators Business Inventories General Housing Starts Jobless Claims Home Sales Unemployment Rate Estate Planning Dow Jones In the News Vehicle Sales Capacity Utilization The Budget Deficit Factory Orders Insurance Bonds MBA Mortgage Index Year In Review Import Prices Fed Note Social Security GDP Average Workweek FOMC Currencies Nonfarm payroll Industrial Production Helpful Hints Empire State Manufacturing Consumer Confidence Our Team Members NFIB Construction Spending Goods Trade Balance Quarterly Updates Consumer Price Index Tax Inversion Euro Unit Labor Costs Continuing Claims Nonfarm productivity Portfolio Management Debt Money Market Producer Price Index Weekly Hours Conference Board Risk Management NASDAQ Retirement Planning Taxes Education Planning Consumer Sentiment The Stock Market Health Insurance Gold Retail Sales Weather, Gas Prices PPI ADP Employment The Eurozone Durable Goods Brexit Average Earnings Payrolls Economy Fed Beige Book Fiduciary Rule Spending Philly Fed Wholesale Inventories Fun Weekly Review Politics Inflation Hourly Earnings ISM Quarterly Reports Interest Rates Home Price Financial Planning Fiscal Cliff Financial Markets JOLT Obamacare International Monetary Fund The Fed The National Debt Scotland Millennials Employment Investment Planning Europe University of Michigan The Economy Account Balance IPO Case-Shiller Labor Costs FHFA Income NAHB Trade Balance Medicare Personal consumption expenditures Equity Bitcoins Trade Deficit Global Markets Question of the Week Building Permits