HOW DOES THE FINANCIAL FUTURE OF SOCIAL SECURITY LOOK?
In their annual report for 2005, the trustees project that Social Security will take in more than it will pay until 2017. Between 2017 and 2027, interest income earned on the trust fund assets is forecasted to make up the difference between income and expenditures. After 2027, Social Security is expected to draw on its trust funds to pay for the expenditures that are not covered by income. Finally, in 2041, the trust fund surplus is expected to be depleted, and annual revenue into the program is projected to be less than expenditures. However, the trustees project that Social Security will still be able to pay between two-thirds and three-quarters of its promised benefits from 2042 to 2081, the farthest date they project. HOW DO THE TRUST FUNDS WORK? Social Security has two trust funds: one for the retirement and survivorship parts of the program, the other for disability. Social Security has been building up its trust funds since 1983 in preparation for the baby boomers’ retirement. W
