Social Security Series Part 1: The Dilemma
| Report Type |
Reports and Testimonies |
| Report Date |
May 18, 2023 |
| Release Date |
May 18, 2023 |
| Report No. |
GAO-23-106667 |
Summary:
What GAO Found
Since 2010, the fund that SSA uses to pay benefits to retirees has been paying out more money than it has been receiving in taxes. At the current rate, the fund's trustees estimate that it will exhaust its reserves in 2033 and be unable to pay full scheduled benefits. The sooner actions are taken to address these financial challenges, the more gradually changes can be phased in and workers would have more time to adjust to any changes and factor them into their retirement plans.
What Is the Dilemma with Social Security
Social Security provides cash benefits to over 66 million retirees, people with disabilities, and others, as of January 2023. For many retirees, these benefits make up a substantial portion of their monthly retirement income, particularly for people with relatively low career earnings.
Despite its importance to the retirement income of many Americans, significant financial challenges threaten the Social Security Administration's (SSA) long-term ability to continue to pay retirees and other beneficiaries full benefits.
This is the first in a series of reports that outline (1) Social Security's financial challenges, (2) criteria for evaluating options for reforming Social Security, and (3) types of proposed reforms. This first report focuses on Social Security's financial challenges.
For more information, contact Tranchau (Kris) T. Nguyen at (202) 512-7215 or Nguyentt@gao.gov.
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