Social Security Trustees' Report

 Posted on June 23,2012 in Social Security Disability

On April 23rd, 2012, the Social Security Administration released it's annual report on the financial status of the program. The release was followed by a number of articles pointing to the "death of Social Security."  Just how in trouble is the system?

The Administration stated that absent any changes to the program, the Social Security Trust fund would be exhausted in 2033. While this is over 21 years away from now, obviously this raises many concerns for the security of future generations. The first question that comes to mind is what does "exhausted" really mean?

Even if the funds are exhausted, it is clear the entire program would not be immediately shutdown. Rather, if no changes are made the program would begin paying three-fourths of the scheduled payments. The idea that Social Security will vanish in 2033 is not grounded on any actual figures.

Bottom line is that Social Security does not seem to be going anywhere any time soon. Even if no changes are made to the system, Social Security will continue. Realistically, I'm confident changes will be made so that future generations can enjoy the same long term security as did our predecessors.

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