Social Security Surplus Withers, But That’s No Surprise
Mike Brownfield /
Hundreds of thousands of recession-induced retirements are proving to be terrible news for the Social Security Administration, leading to the total decimation of its annual surplus for the first time in 25 years, according to USA Today. But this morning’s headline really doesn’t qualify as “news,” per se, given that Social Security has been headed toward dark territory for quite some time.
The chief actuary for the Social Security Administration said of today’s “news” that, “Things are a little bit worse than had been expected.” He understates the true extent of the problem.
This year marks a tipping point for Social Security – for the first time in 25 years, Social Security outlays will exceed revenue, according to Congressional Budget Office (CBO) reports. What’s more, as The Heritage Foundation has warned, Social Security will begin running permanent deficits by 2016.