Printer Friendly

United States : CBO's Long-Term Social Security Projections: Changes Since 2017 and Comparisons With the Social Security Trustees' Projections.

Each year, CBO updates its projections of the Social Security systems finances to incorporate newly available data and information from the research community. The agency also updates its models to incorporate improvements in methods and feedback on its analytical approach. CBOs latest longterm budget projections were published in June 2018.

Comparison With CBOs Previous Projections

CBOs June 2018 projections indicate a slight improvement in the Social Security systems financial outlook compared with the previous years projections:

The projected 75-year actuarial balance, a commonly used measure of the systems financial condition, has not changed as a percentage of gross domestic product (GDP) since last year, remaining at ?1.5 percent of GDP (that is, a deficit of 1.5 percent). As a percentage of taxable payroll, the projected 75-year actuarial balance has improved slightly from ?4.5 percent to ?4.4 percent (see table below).

Changes to projections of three key inputs have improved the Social Security systems projected finances: the share of earnings that is subject to Social Security payroll taxes, the labor force participation rate, and interest rates.

Those improvements have been partially offset by including an additional year of deficit, 2092, in the calculation of the actuarial balance. Technical changes also collectively worsen the 75-year outlook.

[c] 2018 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).

COPYRIGHT 2018 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Date:Dec 11, 2018
Words:221
Previous Article:United States : FTC Proposes Amendments to Improve Usability of the Energy Labeling Rule.
Next Article:Italy : Eni announces a new oil discovery in Block 15/06, offshore Angola.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters