The Congressional Budget Office is out with a new report about the projected long term solvency of Social Security. The report reaffirms the basic fact that it will be roughly 27 years until the Social Security Trust Fund is exhausted.
CBO projects that the trust funds will be exhausted in 2038. In the following year, revenues are projected to equal 81 percent of scheduled outlays. Thus, payable benefits will be 19 percent lower than scheduled benefits. The gap between scheduled and payable benefits will shrink slightly for the following decade, falling to 15 percent in 2050. It will then widen, and by 2085, payable benefits will be 23 percent smaller than scheduled benefits.
27 years of solvency is an incredibly long amount of time. To put that in perspective, the median age of the Senate is currently 62. That means a majority of Senators will die long before the trust fund runs is exhausted under current projections.
Despite what politicians and pundits may say, there is no Social Security problem or crisis that needs “fixing.” The program is on solid financial footing for years to come and worrying about projections beyond a quarter century is absurd given all the unknown variables at play.
With official unemployment over 9 percent, instead of trying to cut our social safety net, our Senators should focus on things that are at least happening in their own life time.