Doom, despair, and a guarantee of fear and loathing has been forecast for Social Security for a long time. The critics can have one more point in their favor this year. The Social Security Administration is going to pay out more than it takes in. It’s not the first time, either. The 1980s saw similar trouble with the SSA. There is a trust fund that Social Security puts the additional cash into, which is how they’ll cover the loss.
Social Security income to be exceeded by spending
This year, as outlined by the Los Angeles Times, the Social Security Administration will spend more than it will earn. The trustees of Social Security and Medicare released a report on Thursday, August 5, that reveals Social Security has more payments for making to Social Security recipients than funds it is due to obtain by the end of 2010. The health care reform bill will purportedly streamline Medicare, and it’s expected to stay solvent until 2029. Medicare had previously been estimated to lapse into critical condition by 2017. The projected bankruptcy of Medicare is thought to be put further off with incentives and regulations aimed at streamlining the program.
Social Security – The ultimate trust fund baby
There is a trust fund that Social Security has just in case. Tax income that’s left over after expenditures goes into the trust fund. In case of a shortfall, that’s what the fund is there for. This instance was exactly why they have it. According to the New York Times, the Social Security Trust Fund is not in danger of running out until 2037. The commissioner for Social Security, Michael Astrue, has projected that if it does, the Social Security Administration will nevertheless be able to meet 75 percent of its payment obligations.
Not enough Peters to pay for Paul
Social Security depends on tax revenue. If less money is being earned by individuals working, less cash is accessible for the program. As people live longer lives, the amount that has to be paid out increases, and therefore so do the obligations the SSA has to meet. The Social Security deficit won’t affect benefits this time.
Discover more information on this subject
nytimes.com/2010/08/06/us/politics/06benefits.html
latimes.com/news/nationworld/nation/wire/sc-dc-0806-social-security-20100805,0,6306255.story
