Social Security’s total cost is projected to exceed its total income in 2018 for the first time since 1982 according to the 2018 OASDI Trustees Report. The 2017 OASDI Trustees Report estimated this would not happen until 2021.
Every year the following chart from the OASDI Trustees Report gets worse and worse. Here is what is in the 2018 report.
Depletion is scheduled for 2034.
Social security was passed by FDR in 1935. The original age to claim Social Security payments was 65. The average life expectancy in 1935 was 62 years old. Today, that would mean the retirement age to receive SS benefits would have to be 80 years old.
Just like in the 1980’s, SS “reform” will come. When you hear the word reform think “can kicking”. Think higher SS taxes.
Social Security taxes are assessed on all wages earned, up to a capped maximum of $128,400 as of tax year 2018. The path of least political resistance is to raise this cap significantly. Any significant cuts in SS benefits will cause a wipe out of any congressman who supports it. The public demands the benefits continue. Where it comes from is not their problem.