As Social Security's funds face insolvency, experts say these are key factors to watch

An improving economy has helped modestly improve the outlook for Social Security's funds.than was previously anticipated. At that time, 83% of benefits will be payable, unless Congress takes action before that date to prevent an across-the-board benefit cut.

"Unless something changes more of the economy rapidly or dramatically, we're going to have trust fund depletion in the next 10 years," Jason Fichtner, chief economist at the Bipartisan Policy Center said during a Tuesday panel hosted by the Committee for a Responsible Federal Budget.The trust fund shortfall may be addressed through tax increases, benefit cuts or by taking funds from general revenues, he said.

While the overall outlook for Social Security's trust funds improved, the depletion date for the fund used to pay retirement benefits remains unchanged.As that depletion date gets closer — with it now just nine years away — there are fewer factors that could change that forecast, Fichtner said.A separate trust fund used to pay disability benefits should be able to pay full benefits through 2098 — the last year of the report's projection period.

As the new trustees' report projects the combined funds may last to 2035, that has not changed, Haltzel noted.4. A declining birth rate may impact the program "It's going to take 20 years, 18 years for the children being born now to actually be workers and paying taxes into the system," Stone said.Legal immigration is preferred, she said, but the effects of illegal immigration on the program are frequently misunderstood.

Source: Financial Digest (financialdigest.net)

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