Industry News

On May 21, 2024, the Center for Retirement Research (CRR) at Boston College released its issue brief, Social Security’s Financial Outlook: The 2024 Update in Perspective. As presented in the issue brief, CRR analyzed the 75-year deficit in Social Security benefits projected in the recently released 2024 Social Security Board of Trustees Report. 

The key findings include:

• ​The 2024 Trustees Report indicated that the 75-year deficit decreased from 3.61% to 3.50% of taxable payrolls, and the trust fund’s depletion date remains at 2033;
• A lower assumed disability incidence rate allows the disability insurance (DI) trust fund to pay full benefits for the next 75 years; and
• Notably, the Social Security program’s Cost-of-Living Adjustments (COLAs) help to protect retirees against rising prices especially during the current high rates of inflation.

The brief concludes, “Social Security is facing a long-term financing shortfall that equals 1 percent of GDP. The changes required to fix the system are well within the bounds of fluctuations in spending on other pro­grams in the past. Moreover, action needs to be taken before the trust fund is depleted in 2033 to avoid a precipitous cut in benefits. Americans support this program; their representatives should fix its finances.”

The brief is available here.