Social Security Will Be Bankrupt By 2033 On Current Trajectory: CBO Report
A recent report by the Congressional Budget Office (CBO) projects that two major Social Security funds in the United States will dry out in the coming decades, with one of them running out within the next 10 years as younger members in the programs are set to lose more than older members.
“If the gap between the trust funds’ outlays and income occurs as CBO projects, then the balance in the trust funds will decline to zero in 2033 and the Social Security Administration will no longer be able to pay full benefits when they are due,” the CBO stated in its report, published in December (pdf).
The Old-Age and Survivors Insurance Trust Fund will be exhausted in 2033 and the Disability Insurance Trust Fund will be exhausted in 2048, the agency said. If the trust funds are combined, the money will be gone by 2033.
The CBO expects spending on Social Security to increase to 7 percent of U.S. gross domestic product (GDP) in 2096, up from 5 percent of the GDP in 2022.
During this period, revenues are only expected to remain at 4.6 percent of GDP, resulting in an ongoing deficit.– READ MORE
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