It has been contended that Social Security is going bankrupt. The critics can have one more point in their favor this year. The Social Security Administration will pay more than it will accumulate. This is not the very first time Social Security has run within the red, either. The SSA flirted with insolvency within the early 1980s. The loss could be covered by the Social Security Trust Fund.
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. By the end of 2010, Social Security and Medicare are slated to pay out more than they will earn, as outlined by the trustees of Social Security and Medicare. After the new health care reform bill passed, Medicare was expected to stay solvent until 2029. Medicare had previously been estimated to lapse into critical condition by 2017. New incentives and regulations are expected to streamline Medicare spending without compromising how much it delivers to citizens receiving benefits.
Social Security can be raiding their trust fund
The Social Security Administration maintains a trust fund for itself. Anything left over after expenditures gets put within the trust fund. The fund is there in case of shortfalls. This kind of instance was exactly why they have it. The Social Security Trust Fund is projected to run out by 2037, as outlined by the New York Times. The Social Security Administration will still be able for making 75 percent of its payments if the numbers are accurate, according to the Social Security commissioner Michael Astrue.
Not enough Peters to pay for Paul
The funding for Social Security is from tax revenue. The fewer individuals that are working, the fewer dollars it receives. More cash has to be paid out as individuals live longer and longer lives. The spending budget deficit that Social Security will run by the end of the year won’t affect anyone’s benefits, though, as any shortfalls do have the trust fund to fall back on.
nytimes.com/2010/08/06/us/politics/06benefits.html
latimes.com/news/nationworld/nation/wire/sc-dc-0806-social-security-20100805,0,6306255.story
