Retirement benefits paid by the Social Security Administration will be depleted by 2046, about two years earlier than originally projected, a government report showed.
The 1989 report of the Social Security Board of Trustees said funds in Social Security's Old Age and Survivors Insurance and Disability Insurance Trust Funds would accumulate rapidly in ratio to the amount paid out until 2014, when the fund ratio is estimated to decline until the funds are exhausted in 2046.Officials offered no explanation for the two-year difference in last year's report, which projected an empty fund by 2048.
In a related report, the Board of Trustees for Medicare's Hospital Insurance Trust Fund pointed out "with concern the rapid growth in the cost of the program, although the program is now financially sound."
"Growth rates have been so rapid that outlays of the program have nearly doubled in the past five years. For the same time period, the program grew 32 percent faster than the economy as a whole. This growth rate shows no sign of abating despite recent efforts to control the cost of the program," the report said.
The Social Security report estimated income to total about $294 billion in calendar year 1989, while a total of about $236 billion would be paid out. This year about 130 million workers will be covered by the Social Security program, and 39 million individuals will receive benefit payments each month.