1. Home
  2. More
  3. Is Social Security in Bigger Trouble Than You Think?
  • Sign up
  • Sign in
Money Talks News
  • Popular
  • Latest
    • Coronavirus
    • Ask Stacy
    • Make
    • Save
    • Borrow
    • Grow
    • Live
    • More
  • Deals
    • Automotive
    • Clothing & Accessories
    • Computers
    • Electronics
    • Everything Else
    • Financial Services
    • Gaming & Toys
    • Health & Beauty
    • Home & Garden
    • Movies, Music & Books
    • Office & Supplies
    • Special Occasion
    • Sports & Fitness
    • Store Events
    • Travel & Entertainment
  • Podcasts
  • Solutions
  • Academy
  • Subscribe to our newsletter
  • Follow us on Facebook
  • Follow us on Twitter
  • Search our site
Seniors holding hands in pool4 Simple Steps for a More Comfortable Retirement
Happy older investor5 Things You Must Do When Your Savings Reach $100,000
10 Amazing Ways to Build Wealth at Any Age10 Amazing Ways to Build Wealth at Any Age
Senior standing beside window5 Retirement Planning Mistakes You’ll Regret Forever

Is Social Security in Bigger Trouble Than You Think?

Ivy league academics have accused the Social Security Administration of not being transparent about its looming shortfall. Here's what it means for your retirement.

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Karla Bowsher • May 13, 2015

Share on Facebook Share on Twitter Share by Email Share on Pinterest Printable version available to members PDF version available to members
Image Not Available

More bad news about Social Security: The funds will run out sooner than government projections indicate, according to a new analysis.

In an article titled “Systemic Bias and Nontransparency in U.S. Social Security Administration Forecasts,” academics from Harvard University in Cambridge, Massachusetts, and Dartmouth College in Hanover, New Hampshire, argue that the federal agency is underestimating the likely future shortfall of its funds.

The Social Security Administration says that to keep the program going, the agency expects to start tapping its reserve in 2019 and expects to deplete its reserve in 2033. According to an SSA summary of the 2014 annual reports:

Thereafter, tax income would be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2088.

That could be a big problem, considering that a recent Gallup poll shows that 36 percent of people who have yet to retire expect Social Security benefits to be a “major source” of retirement income. (See “Social Insecurity: 3 Reasons Retiring Might Be Tough.”)

If the shortfall arrives “sooner than anticipated,” as the academics project, it could make matters worse. They state that the SSA’s Office of the Chief Actuary:

  • Underestimates life expectancy, especially for males
  • Overestimates birth rates

In other words, the academics project that retirees will live longer — and fewer replacement workers will be born — than the SSA projects. Both of these scenarios would deplete the SSA’s reserve sooner than the agency predicts.

But Steve Vernon, a consulting research scholar at Stanford University’s Center on Longevity in Stanford, California, writes at CBS News that he is puzzled by the fuss over how the SSA computes its shortfall projections:

This debate is much like arguing whether the Titanic is one mile or two away from the deadly iceberg. Whether the Social Security trust fund will be depleted in 2033, as forecast by the Office of the Actuary, or at some earlier date…we still have a major problem in need of attention.

  Like Article   Add a Comment

Sign up for our free newsletter!

Simple ways to make, save, and grow your money daily:

  happy subscribers    
MTN Podcasts

Every week our podcasts bring you lively money discussions that will give you a few laughs along with advice that will make you richer.

Money with Stacy Johnson

Listen/Subscribe

Read Next

Some of our favorite stories for you to read next.

7 Social Security Blunders That Can Ruin Your Retirement
7 Social Security Blunders That Can Ruin Your Retirement
Portrait of a happy senior couple
If My Spouse Dies, Can I Get Her Social Security?
Happy senior couple
3 Costly Social Security Mistakes That Women Make
Sign up for our free newsletter!

Join our many free newsletter subscribers building wealth and destroying debt:

Popular Topics
  • Retirement Investment
  • Surveys for Money
  • How to Make Money Online
  • Emergency Stockpile
  • Free Movie Streaming
  • Senior Discounts
Connect
  • Support & FAQs
  • Memberships
  • About
  • Contact
  • Careers
  • Accessibility Statement
Media
  • Television
  • Where We Air
  • Scripts
  • Sitemap
Legal
  • Terms
  • Privacy
  • Cookies
Editorial
  • Fact-Checking Policy
  • Ethics Policy
  • Corrections Policy
  • Ownership & Funding Info

Do Not Sell My Personal Information

© 2023 Money Talks News. All Rights Reserved.
‭1 (833) 669-8557 | 1732 1st Ave #26661, New York, NY 10128

Advertising Disclosure: This site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Cookie Notice

Our website uses cookies to ensure you get the best browsing experience. By using our website, you agree to our use of cookies. Visit our Cookie Policy and Privacy Policy to learn more.

Sign up for our free newsletter!

Join our happy subscribers and sign up for our free newsletter! You'll get:

  • Tips and advice from our expert money reporters. (Our average experience is 18 years!)
  • Unexpected ways to make more and spend less, delivered to you daily.
  • The best deals and coupons to save on everything you buy.
  • Free copies of our eBooks '208 Ways to Save Money Every Day' and '108 Easy Ways to Earn Extra Cash', together a $29 value!