“CBO Cuts Forecast for Social Security Fund Life Span, Sees Debt Topping GDP in 2021,” by Bernice Napach, ThinkAdvisor
“The Congressional Budget Office is projecting that the Social Security Trust Fund for seniors will be depleted in 2031, three years earlier than the fund’s trustees had projected in May and one year earlier than the CBO had projected last year. After funds are depleted, benefits will continue because they are also financed by payroll taxes, but they will decline unless changes are implemented to build up the trust fund’s reserves. The CBO is also projecting that Medicare’s Hospital Insurance Trust Fund will be depleted in 2024, two years earlier than the fund’s trustees and the CBO had projected earlier this year, and that the Social Security Disability Insurance trust fund will be depleted in 2026.
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
I’ve been predicting for decades that the bottom will fall out of the entitlement state around 2031. That’s the year the first boomer turns 85 and it’s all downhill from there. Individuals can protect themselves by eschewing dependency on unfulfillable government promises. Save, invest and insure so you aren’t devastated by losing Social Security, Medicare, and VA benefits, not to mention, Medicaid.