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Understanding the Social Security deficit
1983 was the last year that major legislation aimed at Social Security’s long term solvency was passed, and at that time the program’s 75 year outlook, expressed as a percentage of taxable payroll, was a surplus of 0.02%. That meant that at the end of the 75 year projection period beginning in 1983 a surplus should have remained. So what’s happened since then to bring the current 75 year projection to a deficit of -2.83%? Well, a variety of things including the simple effect of sliding the projection period forward to include larger deficit years, as well as changes to (worsening of) other economic assumptions. This MarketWatch article by Alicia H. Munnell explores the latest projected deficit and the reasons for the change. Click here to read more.