Social Security’s Financial Outlook: The 2013 Update in Perspective

Source: Alicia H. Munnell, Center for Retirement Research at Boston College, Issue Brief, IB#13-8, June 2013

The brief’s key findings are:
* The 2013 Trustees Report shows virtually no change from last year:
– Social Security’s deficit still about 2.7 percent of payroll.
– Deficit as a percent of GDP still less than 1 percent.
– Trust fund exhaustion still 2033, after which payroll taxes still cover about three quarters of promised benefits.
* While the shortfall is manageable, it should be eliminated soon to:
– Restore confidence in the program.
– Avoid larger tax/benefit changes that would result from delay.
– More fairly distribute the burden across generations.
* And the disability insurance program needs immediate attention, as its trust fund is expected to be exhausted in 2016.