The 2020 Social Security Trustees Report provides an invaluable look at the state of the Social Security program. Each year, the Social Security Board of Trustees releases an annual report that examines the past, present, and future of the program. This year’s report reveals that Social Security is still a financial anchor for the nation’s retired workforce, but that its solvency is threatened by changing demographic trends and fiscal policy.
The report provides an in-depth look at how Social Security generates revenue and where those dollars end up. According to the Trustees, this revenue comes mainly from payroll taxes, self-employment taxes, and taxation of benefits. The report also provides a detailed look at the expenses associated with Social Security, which include payments to retired and disabled workers, their dependents, and survivors of deceased workers.
The report also provides projections for the future solvency of the program. According to the Trustees, Social Security’s long-term financial health is threatened by declining fertility rates, an aging population, and the increasing number of people receiving benefits. The Trustees also warn that changes to fiscal policy, such as the 2017 Tax Cuts and Jobs Act, could have a significant impact on the program’s long-term solvency.
The 2020 Social Security Trustees Report provides an invaluable look at the state of the Social Security program. The report reveals that the program is still a financial anchor for the nation’s retired workforce, but that its solvency is threatened by changing demographic trends and fiscal policy. For those interested in learning more about Social Security and its future, the Trustees Report is an invaluable resource.
