MEMO TO MILLENNIALS: No Social Security For You

CBO Social Security

Photo: Congressional Budget Office

If you plan on collecting Social Security after 2038, you might want to make other plans.According to the latest projections from the Congressional Budget Office released today, that is the likely year that the Social Security trust fund will run down to $0 — meaning that it will only be able to rely on payroll taxes to make promised payments to retirees.

There is some uncertainty to the statistics due to economic and demographic variables. 80 per cent of the simulations fall inside the green band in the chart on the right.

To give you a sense of just how large this deficit might be — the CBO has provided this disturbing chart (below). The program would fall short over one per cent of GDP, with the gap continuing to increase over time.

The program would still pay out benefits, but unchanged, it would only be able to fund a fraction of what it provides now.

You can read the CBO projections in their entirety here.

CBO Social Security

Photo: Congressional Budget Office

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