The trustees for Social Security have just issued their annual report. And, as we have learned annually over recent years, the system cannot meet its obligations.
According to this latest report, the Social Security system will not be able to meet its obligations to retirees by 2035. In 2035, the system will be adequate to meet just 83% of its obligations.
This is supposedly good news because the projected shortfall occurs one year later than reported last year.
But the change simply reflects the fact that the system is so massive — it’s the single largest government program, with annual expenditure of $1.2 trillion — that small changes in assumptions in the planning model produce big changes in the projected results.
Young people today start working and immediately have 6.2% of their paycheck deducted in payroll tax for Social Security, with their employer…
