Economy Impacting Long-Term Solvency of Social Security

According to AARP research, more than 1 in 6 residents in Connecticut (more than 587,000) receive Social Security. And, 25 percent of all Connecticut residents over the age of 65 count Social Security as their only source of income in retirement. As a state with one of the highest median age populations in the nation (Connecticut ranks seventh overall), the issue of economic security for older adults is critical to our future.

A recent report to Congress from the Social Security Board of Trustees found that while Social Security benefits are projected to be adequately funded for the next three decades, the Social Security trust fund will be exhausted by 2037, four years earlier than expected due to the faltering economy.

The economic collapse has demonstrated the importance of Social Security’s guaranteed benefit as the foundation of retirement income. With Social Security serving as the principal source of family income for over half of older Americans, the issue of solvency has again emerged with a renewed level of priority.

“Today, more than 51 million people receive a Social Security benefit, providing a vital source of income for those in retirement and supplemental income for those unable to work because of a disability,” said AARP Executive Vice President Nancy LeaMond “Social Security insurance protects all age groups; and the good news for current beneficiaries, and those nearing retirement, is that your benefits will remain secure and intact for the foreseeable future. Unfortunately, the Trustees Report also illustrates that Social Security has a long-term solvency challenge that must be addressed, and the sooner we face this challenge, the easier the options for long term reform.

“As discussions develop as to how best to strengthen and improve the system, AARP will help lead the dialogue, with the goal of preserving the promise of Social Security for current and future generations. Social Security is the most secure pillar of retirement income, and AARP will continue to work so that it remains that way.”

To learn more about Social Security and what AARP is doing, go to aarp.org/research/socialsecurity. Continue to check our website to find out how you can help in the effort to strengthen and protect Social Security in the future.

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Other Resources

www.ssa.gov

aarp.org/research/socialsecurity