Social Security to run dry three years sooner than expected: study

Social Security to run dry three years sooner than expected: study
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Social Security could run out of money three years earlier than federal officials are projecting, according to a new analysis of spending and demographic data.

Conducted using a budget modeling system released Wednesday, the analysis projects the Social Security trust fund will run dry in 2031 — three years sooner than the Social Security Administration’s forecast.

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The system, which uses federal budget and census data, was developed at the University of Pennsylvania’s Wharton School. 

The project was led by professor Kent Smetters, a former Congressional Budget Office economist and Treasury Department deputy secretary, and advised by high-profile budget experts. 

Those include former Office of Management and Budget director Peter Orszag, former White House chief economist Austan Goolsbee, and Committee for a Responsible Federal Budget President Maya MacGuineas.

The Obama administration last week released its projections for the Social Security and Medicare trust funds. Officials warned that the two programs, which made up roughly 40 percent of federal spending in 2015, would becoming insolvent within 20 years.

"Medicare faces a substantial, long-term shortfall that needs to be addressed," Treasury Secretary Jack LewJacob (Jack) Joseph LewThe Hill's Morning Report - Biden argues for legislative patience, urgent action amid crisis On The Money: Senate confirms Yellen as first female Treasury secretary | Biden says he's open to tighter income limits for stimulus checks | Administration will look to expedite getting Tubman on bill Sorry Mr. Jackson, Tubman on the is real MORE told reporters.

Democratic politicians, including President Barack ObamaBarack Hussein ObamaBiden nominates Mark Brzezinski to be U.S. ambassador to Poland On The Money: Trump asks court to block release of tax returns to Congress | Private sector adds 330K jobs in July, well short of expectations Biden wishes Obama a happy birthday MORE and presumptive presidential nominee Hillary ClintonHillary Diane Rodham ClintonBriahna Joy Gray: Progressives like Turner should reconsider running as Democrats Biden wishes Obama a happy birthday Ohio special election: A good day for Democrats MORE, have called for expanding Social Security .

The model also allows users to adjust variables like retirement age, benefit levels and tax rates to create new projections.