A recent report by the Old-Age, Survivors, and Disability Insurance Trust (OASDI) Board of Trustees indicates that funding for the nation’s Social Security program will face massive funding deficits in the coming future. According to OASDI’s 2017 Report, Social Security will begin paying out billions more than it takes in starting in 2022, due in large part to waves of Baby Boomers entering retirement.
Currently, more than 62 million Americans rely on benefits from Social Security to help pay for basic expenses like food and shelter. Of that number, 42.8 million are retired workers who have already paid into the system while the remainder are beneficiaries are those who are the disabled or and the survivors of workers who’ve passed away. The Center on Budget Policy and Priorities found in 2016 that Social Security’s guaranteed monthly payout ensures that over 22 million people are kept out of poverty, 15 million of which are retired workers.
Since 1982, the OASDI trust has consistently taken in more income than it has paid out to American retirees. OASDI’s reserves currently sit at $2.9 billion, which is primarily invested in special-issue bonds, and is expected to hit roughly $3 trillion by 2021. However, just one year after the reserve assets peak, funding is expect to take a sharp downturn as millions of Baby Boomers enter retirement.