UM04-04 - Evaluating Social Security's LiabilitiesKent Smetters
According to the most recent Social Security Trustees’ Report, the Social Security system currently faces a $10 trillion present value fiscal imbalance. In other words, $10 trillion are needed immediately in order to place the Social Security system on a sustainable path. Of course, the government does not have $10 trillion available immediately to devote to rescuing Social Security. As a result, an amount exceeding $10 trillion in the form of either slowing the growth of future benefit outlays and/or new future revenues must be obtained in order to place Social Security on a sustainable path – with the present value of these fiscal policy actions totaling $10 trillion today.
Publications (PDF)Working Paper(s):
Measuring Social Security’s Financial Problems