2009 Social Security Trustees Report:Increase Taxes, Cut Benefits
Congress to consider creative solutions for maintaining funding.
by Richard R. Hammar
The 2009 Annual Report of the Board of Trustees of the Social Security Trust Funds was released recently. Here are some of the key findings:
- At the end of 2008, almost 51 million people were receiving benefits: 35 million retired workers and dependents of retired workers, 6 million survivors of deceased workers, and 9 million disabled workers and dependents of disabled workers.
- During the year, an estimated 162 million people had earnings covered by Social Security and paid payroll taxes. Total benefits paid in 2008 were $615 billion. Total income was $805 billion.
- Annual cost will begin to exceed tax income in 2016 for the Social Security trust funds, and the funds "will be exhausted and thus unable to pay scheduled benefits in full on a timely basis in 2037."