President Franklin Delano Roosevelt signed the Social Security Act into law on August 14, 1935. As the critical program celebrates its 80th birthday, we take a look at the challenges that must be overcome so that it can see at least 80 more years.

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The Campaign to Fix the Debt
Social Security Turns 80: The Need for Reform
President Franklin Delano Roosevelt signed the Social Security Act into law on August
14, 1935. As the critical program celebrates its 80th
birthday, we take a look at the
challenges that must be overcome so that it can see at least 80 more years.
Demographic changes threaten Social Security’s long-term sustainability
 An aging population means more retirees receiving benefits and fewer workers
paying into the system through payroll taxes as the baby boomers retire, which
will severely stress Social Security’s finances.
 In 1950, the ratio of workers to Social Security retirees was 16:1. Today, that
ratio is less than 3:1. By 2030, it will be 2:1.
Social Security’s financial problems are already beginning to surface
 Since 2010, Social Security has been paying out more in benefits than it takes in
through revenue. The cash flow deficit in 2015 will be about $85 billion and the
program is projected to continue to spend more than it raises indefinitely.
 The Social Security Disability Insurance (DI) trust fund will run out of money in
2016, which will result in a benefit cut of nearly 20 percent for its beneficiaries.
Reform is necessary for Social Security and the federal budget overall
 The combined Social Security trust funds will run out of money by 2034
according to its Trustees, or as soon as 2029 according to the Congressional
Budget Office. More on Social Security’s finances.
 All beneficiaries will see an immediate, across-the-board benefit cut of least 21
percent once the trust funds are exhausted.
 Social Security is currently the largest single federal program. Putting it on a
sustainable course will benefit federal finances as a whole.
 Many options remain available to fix Social Security if policymakers act soon.
Several approaches can be tried at http://SocialSecurityReformer.org
There is a high cost to waiting to fix Social Security
 Waiting to act literally makes the problem larger, in addition to giving workers
less time to prepare and adjust and ensuring changes are more abrupt.
 Solvency could be achieved with a 2.6 percentage point tax increase enacted
today, a 3.3 point increase enacted in a decade, or a 4.0 point tax increase in
2034. More on the costs of delay in fixing Social Security.
 Solvency could also be achieved with a 16 percent cut for all beneficiaries or 20
percent cut for new beneficiaries today. It would require a 23 percent cut to all
beneficiaries if policymakers wait until 2034; and at that point it would be
impossible to achieve solvency from new beneficiaries alone.