Social Security Set To Deplete Reserves In 10 Years

As we near 2021, the Congressional Budget Office (CBO) has released an estimate that just 10 years later, in 2031, Social Security reserves will be exhausted.

We have written of the developing crisis for the pension industry previously, but this projection by the CBO should be viewed as a siren call for all interested parties. Demographic change is a major factor in creating the problem, but it has been greatly exacerbated by the era of historically low-interest rates in which we live. A combination of restoration of rates to “normal” levels and intervention by plan sponsors are needed to address the problem.

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