The Jeffersonian: Politicks, Sports, and Culture

Wednesday, March 23, 2005

Social Security Trustees Report

The 2005 Social Security Trustees Report came out this morning. The major points?

With these tweaked actuarial models, the SS trust fund cash deficit looks to start in 2017 rather than 2018, and SS trust fund insolvency starts at 2041 not 2042. Why?

Lower mortality rates ie, people living longer.
Fewer people immigrating to America.
Higher Inflation.
Zero productivity increases.

TAPPED has all of the numbers and nitty-gritty on what they mean.

Let's also remember that even if we do absolutely nothing, SS will still be able to pay out 74% of its benefits in 2042. So its not as if we're talking about a massive overhaul needed.

But let's be honest, the most important problem we face is Medicare, which started paying out more than it was taking in last year and will be insolvent in 2020. Ezra has more...