Social Security Trustees Report: Unfunded Liability Increased $1.1 Trillion and Projected Insolvency in 2033
by Rachel Greszler, Romina Boccia
The Heritage Foundation
August 04, 2014
Social Security ran a $71 billion deficit in 2013, closing out four years of consecutive cash-flow deficits as the program’s unfunded obligations continue to grow. Despite being solvent for about two more decades, the Social Security and Disability Insurance programs are already contributing to annual deficits. Absent reform, Social Security benefits will be cut across the board by 23 percent in 2033. Action should be taken today to protect Social Security’s most vulnerable beneficiaries from such drastic cuts without burdening younger generations through tax increases. Lawmakers should immediately replace the current cost-of-living adjustment with the more accurate chained Consumer Price Index, raise the early and full retirement ages gradually and predictably, focus Social Security benefits on those who need them most, and alleviate poverty in old age with a minimum flat benefit.