Social Security Sustainability and Reform

Social Security is the foundation of retirement and disability income support in the United States, paying out $615 billion in benefits in 2008 to nearly 51 million beneficiaries. Although the core functions of Social Security remain largely unchanged, the system now faces an exceptional challenge: It is not financially sustainable in its current form. In the coming years, efforts to meet this challenge will be staged in a changing environment. That environment is in part responsible for the solvency crisis, but it also presents policy reform opportunities to address the financial challenge. More generally, any reforms to the system should be informed by the changing, and uncertain, environment in which the Social Security program will operate in the coming years.