The Congressional Budget Office released an updated budget outlook
The Congressional Budget Office released an updated budget deficit outlook to reflect the impact the pandemic has had on the economy along with its impact on the Social Security and Medicare trust funds. According to the agency’s report, the budget deficit will reach a record $3.3 trillion this year which is projected to be 98 percent of gross domestic product and is also expected to surpass the levels of World War II next year when it’s expected to reach 104 percent in 2021.
As for the Social Security and Medicare Trust funds, the numerous adverse effects of the current crisis has accelerated the expected insolvency dates from the previous projection of 15 years, to 11 years. However, other research and policy organizations have even less conservative assessments – the Bipartisan Policy Center anticipates the two trust funds will be depleted by 2028. In Alessandra Malito’s article appearing on www.martketwatch.com, she writes how these projections will affect today’s older workers who may see the first cuts to Social Security benefits. Read Ms. Malito’s article here…