According to the Center on Budget and Policy Priorities, in 2021, the Social Security Board of Trustees lifted approximately 21.75 million people, including nearly 15.4 million seniors aged 65 and over, out of poverty.
The Social Security program, overseen by the Social Security Board of Trustees, has long been a cornerstone of financial support for millions
However, the latest 2023 report from the Social Security Board of Trustees paints a grim picture of this vital program. It estimates a staggering funding shortfall of $22.4 trillion through 2097. In simpler terms, the Social Security Board of Trustees foresee a future where Social Security won’t generate enough revenue to meet its obligations, which include benefits and administrative expenses, over the next 75 years.
One alarming projection is that the Old Age and Survivors Insurance Trust Fund (OASI), which holds excess revenue, might run dry as early as 2033. This scenario could necessitate substantial benefits cuts, possibly up to 23%, for retired workers and survivor beneficiaries to ensure payouts continue without further reductions until 2097.
Despite popular misconceptions, claims of Congress “stealing” from Social Security are baseless
The program’s asset reserves are invested in government bonds, with interest income generated. The U.S. government accounts for every cent via these bonds and certificates of indebtedness.
Moreover, repayment of these bonds would lead to lost interest income and worsen Social Security’s financial situation. The program’s challenges largely stem from demographic shifts, such as a declining fertility rate, reduced net immigration, income inequality, and congressional inaction.
As lawmakers grapple with solutions, it’s clear that the Social Security Board of Trustees’ warnings underscore the urgency of addressing these pressing issues. The myth of Congress mismanaging Social Security Board of Trustees funds remains unfounded amidst the program’s real, substantial challenges.
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