Trustees Report Gives Mixed Signals, Boomers Set To Milk Social Security

Experts believe that the recently released Social Security Trustees Report revealed mixed signals about the program’s short and long-term sustainability.

Chief Actuary at the Social Security Administration Stephen Goss said the report shows both positive and negative forecasts for the short and long term, respectively. While the national deficit will spike in the near future, Goss said that in the long run, national deficit will drop as provisions in the health care overhaul bill begin to materialize.

Goss and a panel of experts said they believe that, although Social Security OASI and DI Trust Funds are adequately financed until 2040 and 2018, long term imbalances need to be addressed. The oldest baby boomers will turn 65 in 2011 and as more of them begin to file for Social Security, the number of people pumping cash into the program decreases, consequently hiking prices for future generations.

According to a statement, “the sooner action is taken to address the long-run financial imbalances, the more reform options will be available, and the more time there will be to phase in changes so that those affected will have adequate time to prepare.”

Older Americans need nine percent in '09

The Leadership Council of Aging Organizations met to discuss an increase in funding to the programs of the Old Americans Act (OAA). The OAA delivers human, social, and nutritional services for Americans over the age of sixty. Amy Gotwals of the National Association of Area Agencies on Aging said that the OAA provides the right system to help older Americans, but that it is greatly under funded.

Bob Blancato of the National Association of Nutrition and Aging Services Programs said that the programs of the OAA have been flat-funded for years. He added that the funds supplied to the programs have not kept up with inflation and higher food and gas prices, leading to a shortfall of $380 million.

For 2009, the Council requests a nine percent increase in funds, about $184 million. Lita Levine Kleger of Experience Works said that funding cuts would lead to a loss of 22,000 jobs for low-income older Americans. Jennifer Zeitzer of the Alzheimer’s Association added that the funds to the National Family Caregiver Support Program were only pennies on the dollar compared to the money spent by caregivers themselves. Kleger said that the proposed funding is necessary to allow the elderly to age with dignity and continue to contribute to the community.