Don’t believe the hype when it comes to politicians and entitlement program critics, despite a “sky is falling” mentality the Social Security safety net programs are not in immediate danger of running dry.
According to the 2012 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, Social Security will run out of full funding not until 2033.
This does not mean that the entirety of the Social Security trust fund will be gone by then, just that Social Security will not be able to pay 100 percent of promised benefits by this date without changes to the system. Congress would have to make changes prior to this point to preserve 100 percent Social Security payouts.
This would not be the first time Congress had to step in to save Social Security. In 1983 Congress worked with President Reagan in making changes to the program, including increasing the full retirement age, to extend the solvency of the program.
For more information on the 2012 Annual Report visit: http://www.treasury.gov/resource-center/economic-policy/ss-medicare/Documents/TR2012%20OASDI%20Final.pdf
