Endless federal red ink may doom Social Security recipients
According to a new report from the Congressional Budget Office (CBO), the average federal deficit is now expected to hit an eye-popping $1.2 trillion per year between 2020 and 2029—a total of $12.2 trillion over that period.
The new deficit figures are amplifying fears among some retirement security experts about an inevitable blow to critical entitlement programs. First and foremost: Social Security, which is already dancing on the knife’s edge of insolvency.
“If nothing is done, the [Social Security] Trust Fund is depleted in 2035,” Edelman Financial Engines executive chairman Ric Edelman told Yahoo Finance’s YFi PM. “At that point, under current law, all beneficiaries — everybody getting Social Security checks — will get a check that’s 23% smaller. This could push millions of American retirees into bankruptcy,” he warned.
Image courtesy Scott Stantis and CBO ‘Combined OASDI Trust Funds; January 2011 Baseline’ 26 Jan 2011