Social Security's Asset Reserves Will Be Gone by 2035: Should You Take Your Benefit Early?
In case you haven't heard, America's most important social program, Social Security, is in quite the bind.
According to the annually published Social Security Board of Trustees report, the program is set to face an unwanted shift in 2020. Namely, it'll expend more than it collects for the first time since 1982. The reason? A combination of ongoing demographic changes are adversely impacting the program. Examples include the continued retirement of baby boomers, widening income inequality, increased longevity, and lower birth rates, just to name a few.
The point is that the trustees estimate 2020 to feature a $4.3 billion net-cash outflow from Social Security. Compared with the $2.9 trillion the program currently holds in asset reserves, this hardly seems like a reason to fret. However, these net-cash outflows are forecast to rapidly grow with each passing year. By the time 2035 rolls around, this $2.9 trillion in built-up net-cash surpluses since Social Security's inception will be completely gone.
Source Fool.com
