Social Security Finances
After the federal government pays back with interest the $2.8 trillion that it owes to Social Security, what is the estimated average shortfall for everyone currently in the program?
Correct Answer
Since 2010, the federal government has been paying back with interest the money that it owes to Social Security, and the current balance stands at $2.8 trillion. This is due to be paid in full by 2034. After that, the program's actuaries estimate that SS will have $49.8 trillion in unfunded obligations for everyone now in the program. This includes both taxpayers and beneficiaries, amounting to an average shortfall of $199,511 per person. Contrary to common myths, SS doesn't save peoples' money for them and hasn't been looted to fund other programs. Moreover, SS has received interest on its trust fund that is higher than the rate of inflation and the market rate of federal bonds. Since SS began in 1937, politicians have repeatedly added money to it by raising taxes. Thus, every generation has been forced to pay more for SS than the preceding one.