Summary
Social Security, a U.S. retirement income program, faces a financial problem and may run out of funds by 2033. Without changes, benefits could be cut, affecting millions of retirees. The government must decide how to balance taxes and benefits to fix this issue.
Key Facts
- Social Security could run out of money by 2033.
- If nothing changes, benefits may be reduced to 77% of the current amount.
- The average monthly benefit could drop from $2,008 to $1,546.
- The trust funds hold Treasury securities, which means the government owes this money to itself.
- There are fewer workers supporting each retiree, dropping from 3.4 workers per beneficiary to 2.7 now, and expected to reach 2.3 in a decade.
- The $350 billion shortfall in 2033 amounts to about 1.1% of the U.S. GDP.
- Solutions involve politically challenging trade-offs, like raising taxes or cutting benefits.
- Elected officials have largely avoided addressing the issue despite its long-term visibility.
