Question of the Day

After the federal government pays back with interest the $2.9 trillion that it owes to Social Security, what is the estimated average shortfall for everyone currently in the program?

Correct Answer

Tell Me More

After the federal government pays back with interest the $2.9 trillion that it owes to Social Security, the program's actuaries estimate that it has $38.9 trillion in unfunded obligations. This amounts to an average shortfall of $218,727 for everyone currently in the program, including both taxpayers and beneficiaries. This deficit approximates the method by which publicly traded companies are required by law to report the finances of their pension and retirement plans. Contrary to common myths, SS does not save peoples' money for them, no money has been taken from the program, and SS has received interest on its trust fund that is higher than the rate of inflation and higher than the market rate of federal bonds. Just the opposite, politicians have repeatedly infused more money into SS by raising its payroll tax rate and the amount of wages that are subject to it. Thus, every generation has been forced to pay more real taxes for SS than the preceding one.

DocumentationSocial Security FinancesSocial Security MythsSocial Security TaxesSS Trust Fund InterestSS Boosted, Not Looted




Reload Question
Reload Question
Share via Facebook
Share via Twitter
Share via Email
Embed into your website
About the Fact App
Articles by Topic