Is Social Security Going Broke?

The Social Security system, the Federal government’s most popular program, was designed in the 1930s to ensure against old-age poverty, or as President Roosevelt said, “…the hazards and vicissitudes of life.” In its latest annual report, however, the Social Security Administration warns that one of the program’s key sources of revenue — sale of bonds from the “Trust Fund” to the Treasury — will run out of bonds in 2032. (Find the report summary here: https://www.ssa.gov/oact/TRSUM/). This has led to banner headlines about the system going broke and false analogies to business insolvency. Without the cash from bond sales, the currently projected payroll tax revenue will pay for only about 75% of scheduled benefits; tax revenue from outside the system will be required to maintain full benefits. This Osher course will focus on ways to shore up the system.