We keep quietly kicking the can down the road. The Congressional Budget Office released new projections concerning Social Security funding late last week.
From Investors Business Daily…
The nonpartisan budget scorekeeper released the estimates Tuesday as part of broader economic and budget forecasts. CBO expects the trust fund to peak in 2018 and decline to $2.7 trillion in 2022 — a full $1 trillion less than Social Security’s own actuaries predicted last year.
Considering the federal government keeps running up yearly tabs of well over $1 trillion a year … what can we expect?
Under current law, once the trust fund is gone, Social Securi ty could only pay 78% of benefits. Since older retirees and the disabled would be protected, new retirees would face much deeper cuts to a benefit that is not especially generous to begin with.
The average retired worker received a $1,200 monthly benefit last year before Medicare premiums were subtracted.
Social Security’s earlier reckoning day gives people less time to set aside savings to make up for what the program can’t afford.
Thanks a lot.