“At the time of depletion of these combined reserves, continuing income to the combined trust funds would be sufficient to pay 79 percent of scheduled benefits,” the Social Security Administration admitted in its 2020 annual report. The inability to meet obligations would only worsen from there with a growing gap between revenues and expenditures.
The solution? Cut Social Security benefits, of course.
Benefit cuts, then, may become necessary to keep Social Security going, says the CBO. To keep the program solvent for 75 years, reductions of 30 percent starting in 2022 would have to be made to the benefits of all current and future beneficiaries. “These reductions would achieve a 75-year OASDI actuarial balance of zero but would not be large enough to prevent exhaustion of the combined trust funds during the period,” adds the CBO.
Waiting longer to address the problem would make the pain worse.
Like every other federal entitlement, Social Security is impossible to get rid of and will only be reformed when it is already circling the drain.