Pay As You Go Solvency
(Slow Growth Scenario)

Two images from our online Social Security Solvency Simulator.

Benefits and Charts 1, side by side.
Note that Overall Benefits are trimmed to 75% of the current law schedule by 2035.
Chart 1B. The Funds-to-Benefits Ratio is level in the out-years. This passes the key test for lasting solvency..
Chart 3A. Benefit sources are adequate to reach the "Benefit Target" line. Note the pink "Trust Fund Earnings" bars.
This shows that Social Security is partially funded through interest payments from the federal budget.
The US Treasury is the perpetual debtor, Social Security the perpetual creditor, and the annual interest flow
shows up in pink in Chart 3A. The Treasury debt that generates these interest payments is shown in Chart 1A.
Although Chart 1A is done from Social Security's "asset-owned" perspective, it also represents Treasury's debt to Social Security.

Results Page. You can use the settings on this page to recreate our results for yourself.

Note the cumulative "Benefits Actually Paid" line - $372 Trillion, paid 2003 - 2075.
Note the combined employee-employer Tax Rate - it holds steady at 12.4% of taxable payroll.
Note the GDP Growth Rate assumption.
GDP real growth is pegged at 1.6% a year, as forecast by Social Security's Trustees.

A series of PRA assumptions also show up on the Results Page, but no PRA's are authorized, so they have no bearing on this run.

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