Social Security’s Financial Outlook: The 2020 Update in Perspective
Source: Center for Retirement Research
- The 2020 Trustees Report, which was prepared before the pandemic, shows:
- Social Security’s 75-year deficit increased from 2.78 percent to 3.21 percent of payroll.
- Trust fund depletion remains at 2035, after which payroll taxes still cover about three quarters of promised benefits.
- This shortfall is manageable, and the pandemic is unlikely to fundamentally alter the long-term financial status of the program.
- Today’s crisis has also underscored the importance of Social Security, which continues to provide a steady source of income to millions of Americans.
- Therefore, once the crisis subsides, stabilizing Social Security’s long-term finances should be a high priority to ensure that Americans have full confidence in its future.