Social Security Financial Status Looks Better in
Trustees Annual Report
Trust Funds exhausted in 2041 - the same as last
year’s estimate
March 26, 2008 – The 2008 report by the Social
Security Board of Trustees shows improvement in the projected long-term
financial status of the Social Security program from last year -
particularly in the later years of the long-range projection period.
This improvement is principally the result of methodological changes for
projecting certain aspects of immigration, says a news release from
Social Security.
The Trustees also report that the key dates for the
Social Security Trust Funds costs to exceed tax revenues and Trust Fund
exhaustion remain unchanged.
In the 2008 Annual Report to Congress, the Trustees
report:
● The projected point at which tax revenues will
fall below program costs comes in 2017 - the same as the estimate in
last year’s report.
● The projected point at which the Trust Funds
will be exhausted comes in 2041 - the same as the estimate in last
year’s report.
● The projected actuarial deficit over the
75-year long-range period is 1.70 percent of taxable payroll - down from
1.95 percent in last year’s report.
● Over the 75-year period, the Trust Funds would
require additional revenue equivalent to $4.3 trillion in today’s
dollars to pay all scheduled benefits.
“Social Security is at a crossroads. We face
enormous challenges to shore up the system,” said Michael J. Astrue,
Commissioner of Social Security.
“I will continue to work with President Bush,
Congress and our stakeholders to develop policy solutions. I also look
forward to working with the next administration, since the challenges
that face the Social Security system will undoubtedly require a
bipartisan and multi-year effort.”
‘We need to act quickly and effectively to address
Medicare’s fiscal health’ HHS Secretary
March 26, 2008 – As many have long known, Medicare
is under a great deal more financial stress than the Social Security
program, and this was confirmed yesterday by the annual report of the
Medicare Trustees that says Medicare’s Hospital Insurance (HI) Trust
Fund will become insolvent slightly earlier in 2019 than reported last year.
Read more...
Other highlights of the Trustees Report include:
● Income including interest to the combined
Old-Age and Survivors, and Disability Insurance (OASDI) Trust Funds
amounted to $785 billion ($656 billion in net contributions, $19 billion
from taxation of benefits and $110 billion in interest) in 2007.
● Total expenditures from the combined OASDI
Trust Funds amounted to $595 billion in 2007.
● The assets of the combined OASDI Trust Funds
increased by about $190 billion in 2007 to a total of $2.2 trillion.
● During 2007, an estimated 163 million people
had earnings covered by Social Security and paid payroll taxes.
● Social Security paid benefits of $585 billion
in calendar year 2007. There were almost 50 million beneficiaries at
the end of the calendar year.
● The cost of $5.5 billion to administer the
program in 2007 was a very low 0.9 percent of total expenditures.
● The combined Trust Fund assets earned interest
at an effective annual rate of 5.3 percent in 2007.
The Board of Trustees is comprised of six members.
Four serve by virtue of their positions with the federal government:
Henry M. Paulson, Jr., Secretary of the Treasury and Managing Trustee;
Michael J. Astrue, Commissioner of Social Security; Michael O. Leavitt,
Secretary of Health and Human Services; and Elaine L. Chao, Secretary of
Labor. The two public trustee positions are currently vacant.
●
In 2008, almost 50 million Americans will receive nearly
$608 billion in Social Security benefits.
● Social
Security is the major source of income for most of the
elderly.
>> Nine out of ten
individuals age 65 and older receive Social Security
benefits.
>> Social Security
benefits represent 39% of the income of the elderly.
>> Among elderly
Social Security beneficiaries, 52% of married couples and
72% of unmarried persons receive 50% or more of their income
from Social Security.
>> Among elderly
Social Security beneficiaries, 20% of married couples and
about 41% of unmarried persons rely on Social Security for
90% or more of their income.
● Social
Security provides more than just retirement benefits.
>> Retired workers
and their dependents account for 69% of total benefits paid.
>> Disabled workers
and their dependents account for 18% of total benefits paid.
> About 91 percent
of workers age 21-64 in covered employment and their
families have protection in the event of a long-term
disability.
> Almost 3 in 10
of today’s 20 year-olds will become disabled before reaching
age 67.
69% of the private sector
workforce has no long-term disability insurance.
>> Survivors of
deceased workers account for 13% of total benefits paid.
> One in seven of
today’s 20 year-olds will die before reaching age 67.
> About 97% of
persons aged 20-49 who worked in covered employment in 2005
have survivors insurance protection for their young children
and the surviving spouse caring for the children.
● An
estimated 165 million workers, 96% of all workers, are
covered under Social Security.
>> 52% of the
workforce has no private pension coverage.
>> 31% of the
workforce has no savings set aside specifically for
retirement.
● In
1935, the life expectancy of a 65-year-old was 12½ years,
today it's 17½ years.
● By
2032, there will be almost twice as many older Americans as
today -- from 38 million today to 72 million.
● There
are currently 3.3 workers for each Social Security
beneficiary. By 2032, there will be 2.1 workers for each
beneficiary.
Keep up with the latest news for senior citizens, baby
bommers
March 26, 2008 – The 2008 report by the Social
Security Board of Trustees shows improvement in the projected long-term
financial status of the Social Security program from last year -
particularly in the later years of the long-range projection period.
This improvement is principally the result of methodological changes for
projecting certain aspects of immigration, says a news release from
Social Security.