Social Security: Analysis of Issues and Selected Reform Proposals

Thank you for inviting me here to talk about our nation's Social Security program and how to address the challenges presented in ensuring the long-term viability of this system. Social Security not only represents the foundation of our retirement income system; it also provides millions of Americans with disability insurance and survivors? benefits. As a result, Social Security provides benefits that are critical to the current and future well-being of tens of millions of Americans. However, as I have said in congressional testimonies over the past several years,1 the system faces both solvency and sustainability challenges in the longer term. In their 2002 report, the Trustees emphasized that while the program's near-term financial condition has improved slightly, Social Security faces a substantial financial challenge in the not-too-distant future that needs to be addressed soon. In essence, the program's long-term outlook remains unchanged. Without reform, Social Security, Medicare, and Medicaid are unsustainable, and the long-term impact of these entitlement programs on the federal budget and the economy will be dramatic.