November 15, 2010

Projected Cash Flow Deficits in Social Security

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This chart by Veronique de Rugy uses data from the Social Security Administration’s (SSA) 2010 OASDI Trustees Report to show, in real terms, anticipated cash flows in the Social Security trust funds from 2010 to 2085. Annual deficits are given for each year from 2010 through 2020; projections are given for every fifth year thereafter. The SSA’s moderate projections illustrate a stark reality: with the exception of the three years immediately following a projected economic recovery, Social Security cash flows will be billions of dollars in deficits this year and into the foreseeable future.

Put differently, the amount of money Social Security collects each year will be less than the amount of money it pays out in benefits to retirees.

Veronique de Rugy explains why cutting Social Security spending is our best bet.