Doom, despair, and a guarantee of fear and loathing has been forecast for Social Security for a long time. The critics may have one more point in their favor this year. The Social Security Administration is going to spend more than it takes in. It also is not the very first time it’s occurred. The 1980s saw similar trouble with the SSA. The loss will be covered by the Social Security Trust Fund. Source for this article – Social Security Administration has cause for insecurity by Personal Money Store.
Social Security payments to exceed income
The Social Security Administration will take in less for this year than it is due to spend, according to the Los Angeles Times. The board of trustees for Social Security and Medicare have reported, as of August 5, the tax income can be less than their due to shell out out by the end of 2010. After the new health care reform bill passed, Medicare was expected to stay solvent until 2029. Estimates before the bill passed gave Medicare until 2017. More incentives and regulations are expected to stave off Medicare’s impending demise.
The Social Security Trust Fund could be broken into
The Social Security Administration maintains a trust fund for itself. The trust discover is where any money left over after expenditures goes. The fund is there in case of shortfalls. That’s why it was created. The Social Security Trust Fund is projected to run out by 2037, as outlined by the New York Times. The Social Security commissioner, Michael Astrue, says according to the numbers the Social Security Administration will still be able to meet at least 75 percent of their obligations.
Who will be Peter with so numerous Paul’s?
Tax revenues are how Social Security is funded. If less money is being earned by individuals working, less cash is available for the program. As people live longer, more has to be paid out. The Social Security deficit won’t affect benefits this time.