Social security faces a major funding challenge. The OASITF, which provides retirement benefits, will be almost out of funds by 2033, and the DI Trust will be out of funds in 2016. In such cases, funds are simply transferred from one trust to another to make up for the shortfall. In the 2016 federal budget, there was a proposal to re-allocate funds from OASITf to the DI Trust. However, this re-allocation will only worsen the situation for OASITf. In short, funding is a major issue that will prevent social security programs from being sustained for long periods of time. Reallocating funds or cutting benefits is not the answer. The majority of Americans want social security programs to continue and are willing to pay higher for it. Therefore, the only solution is to continue the social security programs with benefits as before.

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The Social Security program is facing a significant funding challenge with the OASITF proje... View the full answer