Social Security is expected to be paying out more than it receives in taxes by 2018 and to have exhausted its trust fund by 2042, at which point revenues will be able to cover approximately 75 percent of promised benefits. It is commonly accepted that the benefit shortfall needs to be corrected and that this should be accomplished long before the problem is at hand.

Some believe the system requires a major overhaul, including replacing a portion of Social Security benefits with personal investment accounts. Others say the projected shortfall is a manageable problem and that the system's current structure and guaranteed benefits should not be sacrificed to find the right solution.

See the materials below for more information on Social Security's financial picture and on some of the proposals for reform.

Social Security, Medicare Finances 'Problematic': Trustees Social Security trust fund projected to last until 2041 (posted 4/27/07) . . . more Privatization Proponent Gets No. 2 Job at Social Security Recess appointment bypasses Congress (posted 4/5/07) . . . more Privatization Proponent Will Not Get Shot at Social Security Job Andrew Biggs had been picked by president to be deputy commissioner of Social Security (posted 2/16/07) . . . more SSA Gets New Commissioner Michael Astrue to serve six-year term (posted Feb. 16, 2007) . . . more Bush Says Little About Social Security in Speech Entitlement reform gets just seven sentences in State of the Union (posted 1/24/07) . . . more Fed Chief Warns Senators About Budget Entitlement costs a big threat, Ben Bernanke warns (posted 1/18/07) . . . more Social Security Reform Included in President's Budget Measure essentially DOA (posted 2/17/06) . . . more Bush Calls for New Commission on Entitlements Panel would examine effect of baby boomer retirements (posted 2/1/06) . . . more Social Security Reform Officially Dead for 2005 Senator predicts issue may not return until 2009 (posted 11/16/05) . . . more Social Security Benefits to Increase Beneficiaries to receive 4.1% COLA (posted 10/14/05) . . . more Social Security Reform Probably Shelved for Year Other issues crowd out proposals to overhaul system (posted 10/14/05) . . . more GOP Social Security Plan Would Increase Federal Spending by $1 Trillion: CBO Proposal would push trust fund exhaustion back 11 years (posted 9/20/05) . . . more House Democrats Unveil Retirement Savings Proposal Proposal intended to counter GOP Social Security and pension plans (posted 8/2/05) . . . more GOP Social Security Proposal Unveiled Plan would fund accounts with program surplus (posted 6/29/05) . . . more AFL-CIO Warned by Feds About Social Security Lobbying Department of Labor warns union not to hire and fire money managers based on position on personal accounts (posted 5/27/05) . . . more Bush Should Drop Personal Accounts Requirement, 2001 Panel Member Says Desire for carve-out accounts should not get in the way of reform, according to Robert Pozen (posted 5/27/05) . . . more Bush Makes Prime Time Case for Reform; Congressional Leaders Lay Out Plans Benefit reductions for higher-income retirees a possibility, president says (posted 4/29/05) . . . more Social Security Debate Underway in Senate Reublicans, Democrats clash over personal accounts, food metaphors (posted 4/27/05) . . . more Social Security Not in Crisis But Approaching It, U.S. Comptroller General Tells Lawmakers Lawmakers urged to act before situation becomes urgent (posted 3/21/05) . . . more House Rejects Democratic Move on Social Security Democrats can't GOP lawmakers to go on record on personal accounts (posted 3/21/05) . . . more Bush Begins Push for Social Security Reform President makes case for personal investment accounts in State of the Union address (posted 2/8/05) . . . more Key GOP Lawmakers Balk at President's Social Security Plan Chairs of Ways and Means Committee, Social Security Subcommittee look for reforms beyond personal accounts (posted 1/20/05) . . . more Personal Accounts No Windfall for Firms: Study Study by Securities Industry Association concludes that personal investment accounts in Social Security would not create a windfall for financial services firms (posted 12/13/04) . . . more Bush Cites Social Security Reform as 2nd Term Priority Coming reform debate likely will bring back push for mandatory coverage for state and local workers (posted 11/24/04) . . . more

An Oldie But Goodie: The Importance of Social Security as Source of Retirement Income Center for American Progress examines role of Social Security in providing for retirement income in August 2007 report . . . more 2006 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds Social Security trustees identify 2017 and 2040 as key dates for program in May 2006 report . . . more 2005 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds Social Security expenditures will exceed tax revenues in 2017, according to March 2005 report from the program's trustees . . . more Social Security Reform: How Benefits Compare Study released on March 2 by the EBRI comparing Social Security reform options and finding strongest support for eliminating wage cap and forcing state and local workers to participate . . . more 'Updated Long-Term Projections for Social Security' from the Congressional Budget Office CBO updates Social Security projections; still forecasts program will be able to pay full benefits until 2052 . . . more Individual Social Security Accounts: No Free Lunch for Wall Street Study by Securities Industry Association concludes that personal investment accounts in Social Security would not create a windfall for financial services firms . . . more The Fees of Private Accounts and the Impact of Social Security Privatization on Financial Managers Study by University of Chicago economist concludes that personal accounts in Social Security would create a 'windfall' for financial firms . . . more Cato Institute Social Security Plan Proposal from think tank provides personal accounts option . . . more Brookings Institution Social Security Plan Proposal from Washington think tank would require state and local workers to join program . . . more 'The Outlook for Social Security' from the Congressional Budget Office CBO projects that Social Security will be able to pay full benefits until 2052, a decade later than the program's trustees predicted in March . . . more Social Security Trustees 2004 Annual Report Expenditures to exceed revenues by 2018, trust fund to be exhausted by 2042, according to report . . . more Commission to Strengthen Social Security Report 2001 presidential panel recommends ways to make personal investment accounts part of program . . . more