Newly Release Report Finds Social Security Pays For Itself

WASHINGTON, D.C. -- The trustees of the Social Security and Medicare Trust released their annual report today, finding that the Social Security trust fund experienced a $2.7 trillion surplus and could continue meeting all payments for over 20 years.

"The latest report confirms that Social Security has nothing to do with our current budget deficits," Congressman Charlie Rangel stated. "We just went through the worst economic upheaval since the Great Depression, where 8 million Americans lost their jobs and 6.7 million lost their homes – and yet through it all, the Social Security surplus grew."

The report also found that Social Security would continue to experience growth until 2022. The trustees warned however that long-term issues surrounding Social Security needed to be addressed soon in order to meet the looming baby boomers retirement wave and avoid harming low-income workers. A short fall is not expected to occur until 2036.

"There's no doubt we have to do something to fix the system if the revenues are not coming in and more expenses are going out," Rangel said. "By any analysis the social security system will be able to pay everybody, whether it is death benefits, disability benefits or social security benefits until 2035."

Fast Facts from the 2011 Social Security Trustees’ Report

•    At the end of 2011, 56 million people – retirees, widows, disabled workers, and children – will be receiving Social Security benefits.

•    In 2011, Social Security’s income (from payroll taxes, income taxes, and interest on the U.S.Treasury bonds in the Trust Fund) is projected to be $808 billion, and its operating and benefit costs will be $738 billion. The surplus – $69 billion – will be deposited in the Trust Fund to pay benefits in the future.

•    At the end of 2011, the balance in the Trust Fund is projected to be $2.7 trillion.

•    Social Security has enough income coming in, and reserves in its Trust Fund, to pay full benefits until 2036.

•    If Congress does not take action by 2036, Social Security is projected to be able to pay three-quarters of benefits thereafter.

•    The Trustees project that fully closing Social Security’s 75-year shortfall will require changes (revenue increases or benefit cuts) equivalent to 0.8 percent of GDP.

Click here to access the 2011 Social Security Trustees Report.