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Social Security's underfunding - what does it mean for boomers?

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Social Security trust fund reserves are supposed to be dry by 2037, according to a report released Tuesday by The Social Security Board of Trustees. What does this mean for boomers?

Practically nothing. Nancy LeaMond, executive vice president of AARP, tells U.S. News & World Report, “The good news for current beneficiaries and those nearing retirement is that your benefits will remain secure and intact for the foreseeable future.”

Projections for Medicare and Social Security show reserves for trust fund assets will be depleted four years earlier than 2008′s forecast. The Social Security Administration says after 2037, tax income would be sufficient to pay about three-fourths of scheduled benefits through 2083.

“In 2037, the year the trust fund is currently projected to be depleted, the youngest baby boomers, currently age 45, will be 73,” writes Emily Brandon for U.S. News. “It’s highly unlikely that baby boomers will face a rise in the retirement age or cuts in benefits.”


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