According to the latest government estimates, Social Security has begun a period of permanent cash-flow deficits, paying out more in annual benefits than it brings in through taxes. Absent reform, Social Security will run out of authority to pay full scheduled benefits after 2033. At that time, projections by the Social Security actuary indicate that benefits will have to be cut by about 23 percent if laws are not changed. Such large cuts could be reduced if policymakers took action in advance by phasing in modest tax increases, benefit cuts, or both.
For more information, read "Social Security Faces Major Financial Challenges."
Peter G. Peterson Foundation Chart Pack:
The PGPF chart pack illustrates that budget-making involves many competing priorities, limited resources, and complex issues. In this set of charts, we aim to frame the financial condition and fiscal outlook of the U.S. government within a broad economic, political, and demographic context.
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