Social Security's financial outlook

Munnell, Alicia Haydock. “Social Security's financial outlook”. Issue in Brief 16-10, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, June 2016. http://hdl.handle.net/2345/bc-ir:106992.
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Abstract

The brief's key findings are: (1) The 2016 Trustees Report shows virtually no change: (a) Social Security's 75-year deficit is 2.66 percent of payroll, just a hair below the 2015 projection. (b) The deficit as a percentage of GDP remains at about 1 percent. (c) Trust fund exhaustion is still 2034, after which payroll taxes still cover about three quarters of promised benefits. (2) The shortfall is manageable, but action should be taken soon to restore confidence in the program and give people time to adjust to needed changes. (3) Also of note, the Bipartisan Budget Act of 2015 did two things: (a) It reallocated payroll taxes to extend the life of the DI trust fund. (b) It helpfully eliminated claiming loopholes, which had a small positive effect on program finances.

Title
Social Security's financial outlook: The 2016 update in perspective
Author
Munnell, Alicia Haydock
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
June 2016
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
16-10
Persistent Link
http://hdl.handle.net/2345/bc-ir:106992
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Social Security

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