Industry News

On July 23, 2024, the American Academy of Actuaries (AAA) released its issue brief, An Actuarial Perspective on the 2024 Social Security Trustees Report. The brief was developed by the AAA’s Social Security Committee and presents the Committee’s perspective regarding the 2024 Trustees Report, which examines the Social Security program’s long-term solvency issues.   

Importantly, the Trustees Report reflects the emerging demographic and economic events and conditions. The most recent projection is impacted by the expected improvement in overall economic conditions over the next 10 years. According to the report, “the system’s financial status was affected by the shift in the last year of the valuation period (which adds a year of less favorable finances at the end of the 75-year projection period).”  

The key findings include:

• The combined trust fund reserves are projected to become depleted during 2035, one year later than projected last year. 
• If changes to the program are not implemented before 2035, only 83% of scheduled benefits would be payable after depletion in 2035, declining to 73% by 2098.
• The actuarial deficit decreased from 3.61% of taxable payroll to 3.50% of taxable payroll.   

Congress is urged to act to ensure the sustainable solvency of the Social Security program.

​The AAA’s Social Security Committee prepared this issue brief. Brian Murphy, a retired Senior Consultant and past President of GRS, serves on this committee. 

The brief is available here.