The Unraveling of Social Security: A Closer Look at the Funding Crisis
The Truth Behind Social Security Funding Crisis
Is America's leading retirement program nothing more than a fraud? Here's the undeniable truth. There isn't a social program in this country that improves the financial well-being of Americans quite like Social Security. According to an analysis conducted by the Center on Budget and Policy Priorities using data from the U.S. Census Bureau, nearly 22.7 million people are lifted above the poverty line every year by the guaranteed payments Social Security provides. This includes 16.5 million seniors aged 65 and over.
Social Security's Funding Shortfall
Social Security is facing a greater than $22 trillion long-term funding shortfall. Since 1985, every Trustees Report has cautioned that Social Security was facing a shortfall in its long-term funding obligation. The 2023 Social Security Board of Trustees Report estimated that the program's funding obligation shortfall had swelled to $22.4 trillion through 2097.
Is Social Security a Ponzi Scheme?
Social Security's worsening financial health has ignited the opinion on social media message boards that the program is nothing more than a gigantic Ponzi scheme. But dig beyond the social media message boards and you'll see that this opinion is completely lacking in evidence.
A depletion of the OASI's asset reserves could lead to sweeping benefit cuts for retired workers and survivor beneficiaries by 2033.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.