The Social Security program is currently collecting more money than it is paying out. In 2005, the program collected $701.8 billion and paid out $420.7 billion in benefits to 48 million people (2006 Trustees Report of the Social Security Administration, www.socialsecurity.gov/OACT/TR/TR06/, June 12, 2006). Today, it is estimated that there are 3.4 workers per recipient of Social Security; however, by the year 2075, it is estimated that there will be only 1.9 workers per recipient of Social Security. Clearly, the program must undergo some changes to accommodate this major shift in demographics.

According to government projections, Social Security benefits can be paid solely from tax revenues until 2014. From 2015 to 2025, Social Security benefits will likely have to be paid with the interest from government bonds. From 2026 to 2037, the Social Security Trust Fund may have to redeem its bonds to pay Social Security benefits. Current projections estimate that Social Security funds will be exhausted in 2040. However, even if Social Security assets are exhausted in 2040, the Social Security Trust Fund calculates that it will still be able to pay about 73 percent of benefits using the regular inflow of tax revenue.

While it is uncertain whether Social Security will be able to pay the amounts currently being paid, the U.S. government is committed to do the best that it can to assist the American people, especially those who need it the most.