Social Security’s Financial Outlook: The 2012 Update in Perspective

Alicia H. Munnell

IB#12-9

IB_12-9 (508)

The brief’s key findings are:

  • Social Security’s 75-year deficit is significantly higher than last year’s projection: 2.67 percent of payroll versus 2.22 percent of payroll.
  • This increase reflects the slow recovery from the recession and rising disability rolls, among other factors.
  • The bottom line remains the same: Social Security faces a real, but manageable, shortfall and stabilizing the system’s finances should be a high priority.