March 25, 2008
The Social Security Trust Fund Annual Report has been released for 2008 by the Social Security Board of Trustees. It provides a long-term view showing what is projected to happen over the 75-year planning horizon. The report is key to understanding where Social Security is going. This report includes projections concerning:

• tax revenues
• program costs
• demographics
• rate of economic growth

The Social Security Board of Trustees 2008 Report projects improvement in the long-term financial condition of the Social Security program compared to the previous years report -- especially in the latter half of the 75-year projection period. This improvement is mainly caused by methodological changes for projecting certain effects of immigration.

Social Security Board of Trustees 2008 Report Key Points

• The projected point at which tax revenues will fall below program costs comes in 2017 -- the same as the estimate in last year’s report.
• The projected point at which the Trust Funds will be exhausted comes in 2041 -- the same as the estimate in last year’s report.
• The projected actuarial deficit over the 75-year long-range period is 1.70 percent of taxable payroll -- down from 1.95 percent in last year’s report.

Additional revenue equal to $4.3 trillion in current dollars is needed to pay all scheduled benefits over the 75-year period. "Social Security is at a crossroads. We face enormous challenges to shore up the system, " said Michael J. Astrue, Commissioner of Social Security. "I will continue to work with President Bush, Congress and our stakeholders to develop policy solutions. I also look forward to working with the next administration, since the challenges that face the Social Security system will undoubtedly require a bipartisan and multi-year effort."

The Board of Trustees is comprised of six members. Four serve by virtue of their positions with the federal government: Henry M. Paulson, Jr., Secretary of the Treasury and Managing Trustee; Michael J. Astrue, Commissioner of Social Security; Michael O. Leavitt, Secretary of Health and Human Services; and E laine L. Chao, Secretary of Labor. The two public trustee positions are currently vacant.

The 2008 Trustees Report is posted at www.socialsecurity.gov/OACT/TR/TR08/.

Other highlights of the Trustees Report

• Income including interest to the combined Old-Age and Survivors, and Disability Insurance (OASDI) Trust Funds amounted to $785 billion ($656 billion in net contributions, $19 billion from taxation of benefits and $110 billion in interest) in 2007.
• Total expenditures from the combined OASDI Trust Funds amounted to $595 billion in 2007.
• The assets of the combined OASDI Trust Funds increased by about $190 billion in 2007 to a total of $2.2 trillion.
• During 2007, an estimated 163 million people had earnings covered by Social Security and paid payroll taxes.
• Social Security paid benefits of $585 billion in calendar year 2007. There were almost 50 million beneficiaries at the end of the calendar year.
• The cost of $5.5 billion to administer the program in 2007 was a very low 0.9 percent of total expenditures.
• The combined Trust Fund assets earned interest at an effective annual rate of 5.3 percent in 2007.