Detailed Single Year Tables
Description of Proposed Provision:
C2.5: Increase the normal retirement age (NRA) 3 months per year starting for those age 62 in 2021 until the NRA reaches 70 in 2034. Thereafter, index the NRA to maintain a constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA minus 20). We assume the NRA will increase 1 month every 2 years. Also, increase the earliest eligibility age (EEA) from 62 to 64 at the same time the NRA increases from 67 to 69; that is, for those attaining age 62 in 2022 through 2029. Keep EEA at 64 thereafter.
Financial Estimates for the OASDI Trust Fund Program
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
|
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
| 2020 | 13.92 | 13.00 | -0.92 | 261 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.05 | 12.90 | -1.14 | 248 | -0.00 | 0.00 | 0.01 | ||
| 2022 | 14.21 | 12.93 | -1.28 | 233 | -0.04 | 0.00 | 0.04 | ||
| 2023 | 14.37 | 12.95 | -1.42 | 218 | -0.06 | 0.00 | 0.07 | ||
| 2024 | 14.56 | 12.98 | -1.57 | 202 | -0.09 | 0.01 | 0.09 | ||
| 2025 | 14.76 | 13.00 | -1.76 | 186 | -0.11 | 0.01 | 0.12 | ||
| 2026 | 14.97 | 13.13 | -1.84 | 169 | -0.14 | 0.01 | 0.15 | ||
| 2027 | 15.18 | 13.15 | -2.02 | 152 | -0.17 | 0.01 | 0.18 | ||
| 2028 | 15.38 | 13.20 | -2.19 | 136 | -0.20 | 0.01 | 0.21 | ||
| 2029 | 15.60 | 13.23 | -2.37 | 119 | -0.23 | 0.01 | 0.24 | ||
| 2030 | 15.76 | 13.25 | -2.51 | 102 | -0.26 | 0.01 | 0.27 | ||
| 2031 | 15.83 | 13.26 | -2.57 | 86 | -0.36 | 0.01 | 0.37 | ||
| 2032 | 15.88 | 13.27 | -2.61 | 69 | -0.45 | 0.01 | 0.46 | ||
| 2033 | 15.91 | 13.28 | -2.63 | 53 | -0.54 | 0.00 | 0.54 | ||
| 2034 | 15.93 | 13.29 | -2.64 | 38 | -0.62 | 0.00 | 0.62 | ||
| 2035 | 15.93 | 13.29 | -2.64 | 22 | -0.70 | -0.00 | 0.70 | ||
| 2036 | 15.92 | 13.29 | -2.62 | 6 | -0.77 | -0.00 | 0.76 | ||
| 2037 | 15.90 | 13.30 | -2.60 | ---- | -0.84 | -0.01 | 0.83 | ||
| 2038 | 15.88 | 13.30 | -2.58 | ---- | -0.90 | -0.01 | 0.89 | ||
| 2039 | 15.85 | 13.30 | -2.55 | ---- | -0.96 | -0.01 | 0.95 | ||
| 2040 | 15.82 | 13.30 | -2.52 | ---- | -1.03 | -0.02 | 1.01 | ||
| 2041 | 15.77 | 13.30 | -2.47 | ---- | -1.09 | -0.02 | 1.07 | ||
| 2042 | 15.72 | 13.30 | -2.42 | ---- | -1.14 | -0.02 | 1.12 | ||
| 2043 | 15.65 | 13.30 | -2.35 | ---- | -1.20 | -0.02 | 1.18 | ||
| 2044 | 15.58 | 13.29 | -2.29 | ---- | -1.25 | -0.02 | 1.22 | ||
| 2045 | 15.52 | 13.29 | -2.23 | ---- | -1.30 | -0.03 | 1.27 | ||
| 2046 | 15.47 | 13.29 | -2.18 | ---- | -1.33 | -0.03 | 1.31 | ||
| 2047 | 15.41 | 13.29 | -2.13 | ---- | -1.38 | -0.03 | 1.34 | ||
| 2048 | 15.37 | 13.29 | -2.08 | ---- | -1.42 | -0.03 | 1.39 | ||
| 2049 | 15.32 | 13.29 | -2.03 | ---- | -1.47 | -0.04 | 1.43 | ||
| 2050 | 15.27 | 13.29 | -1.98 | ---- | -1.52 | -0.04 | 1.48 | ||
| 2051 | 15.21 | 13.28 | -1.93 | ---- | -1.58 | -0.04 | 1.54 | ||
| 2052 | 15.17 | 13.28 | -1.89 | ---- | -1.63 | -0.04 | 1.59 | ||
| 2053 | 15.15 | 13.28 | -1.86 | ---- | -1.68 | -0.04 | 1.64 | ||
| 2054 | 15.13 | 13.29 | -1.85 | ---- | -1.73 | -0.05 | 1.68 | ||
| 2055 | 15.13 | 13.29 | -1.84 | ---- | -1.77 | -0.05 | 1.72 | ||
| 2056 | 15.13 | 13.29 | -1.84 | ---- | -1.80 | -0.05 | 1.75 | ||
| 2057 | 15.14 | 13.29 | -1.85 | ---- | -1.83 | -0.05 | 1.78 | ||
| 2058 | 15.16 | 13.29 | -1.87 | ---- | -1.86 | -0.05 | 1.81 | ||
| 2059 | 15.19 | 13.30 | -1.89 | ---- | -1.90 | -0.06 | 1.84 | ||
| 2060 | 15.22 | 13.30 | -1.92 | ---- | -1.93 | -0.06 | 1.87 | ||
| 2061 | 15.25 | 13.30 | -1.95 | ---- | -1.95 | -0.06 | 1.89 | ||
| 2062 | 15.28 | 13.31 | -1.98 | ---- | -1.98 | -0.06 | 1.92 | ||
| 2063 | 15.31 | 13.31 | -2.00 | ---- | -2.02 | -0.06 | 1.95 | ||
| 2064 | 15.34 | 13.31 | -2.03 | ---- | -2.05 | -0.07 | 1.99 | ||
| 2065 | 15.37 | 13.31 | -2.06 | ---- | -2.09 | -0.07 | 2.02 | ||
| 2066 | 15.40 | 13.32 | -2.08 | ---- | -2.13 | -0.07 | 2.06 | ||
| 2067 | 15.43 | 13.32 | -2.11 | ---- | -2.17 | -0.07 | 2.10 | ||
| 2068 | 15.46 | 13.32 | -2.14 | ---- | -2.21 | -0.07 | 2.13 | ||
| 2069 | 15.49 | 13.32 | -2.16 | ---- | -2.25 | -0.08 | 2.17 | ||
| 2070 | 15.52 | 13.33 | -2.19 | ---- | -2.28 | -0.08 | 2.21 | ||
| 2071 | 15.55 | 13.33 | -2.22 | ---- | -2.32 | -0.08 | 2.24 | ||
| 2072 | 15.57 | 13.33 | -2.24 | ---- | -2.36 | -0.08 | 2.28 | ||
| 2073 | 15.59 | 13.34 | -2.26 | ---- | -2.39 | -0.08 | 2.31 | ||
| 2074 | 15.61 | 13.34 | -2.27 | ---- | -2.43 | -0.09 | 2.34 | ||
| 2075 | 15.62 | 13.34 | -2.28 | ---- | -2.46 | -0.09 | 2.38 | ||
| 2076 | 15.61 | 13.34 | -2.27 | ---- | -2.50 | -0.09 | 2.41 | ||
| 2077 | 15.60 | 13.34 | -2.26 | ---- | -2.54 | -0.09 | 2.45 | ||
| 2078 | 15.58 | 13.34 | -2.25 | ---- | -2.57 | -0.10 | 2.47 | ||
| 2079 | 15.56 | 13.34 | -2.22 | ---- | -2.59 | -0.10 | 2.49 | ||
| 2080 | 15.53 | 13.33 | -2.19 | ---- | -2.61 | -0.10 | 2.51 | ||
| 2081 | 15.49 | 13.33 | -2.16 | ---- | -2.62 | -0.10 | 2.52 | ||
| 2082 | 15.45 | 13.33 | -2.13 | ---- | -2.64 | -0.10 | 2.54 | ||
| 2083 | 15.41 | 13.33 | -2.09 | ---- | -2.66 | -0.11 | 2.55 | ||
| 2084 | 15.36 | 13.32 | -2.04 | ---- | -2.67 | -0.11 | 2.57 | ||
| 2085 | 15.30 | 13.32 | -1.99 | ---- | -2.69 | -0.11 | 2.58 | ||
| 2086 | 15.26 | 13.32 | -1.95 | ---- | -2.70 | -0.11 | 2.59 | ||
| 2087 | 15.21 | 13.31 | -1.90 | ---- | -2.71 | -0.11 | 2.61 | ||
| 2088 | 15.15 | 13.31 | -1.84 | ---- | -2.75 | -0.11 | 2.63 | ||
| 2089 | 15.09 | 13.31 | -1.78 | ---- | -2.79 | -0.11 | 2.67 | ||
| 2090 | 15.04 | 13.30 | -1.73 | ---- | -2.83 | -0.11 | 2.72 | ||
| 2091 | 14.98 | 13.31 | -1.68 | ---- | -2.89 | -0.11 | 2.77 | ||
| 2092 | 14.94 | 13.31 | -1.64 | ---- | -2.94 | -0.11 | 2.83 | ||
| 2093 | 14.92 | 13.31 | -1.61 | ---- | -2.98 | -0.11 | 2.87 | ||
| 2094 | 14.91 | 13.31 | -1.61 | ---- | -3.02 | -0.12 | 2.91 | ||
| 2095 | 14.91 | 13.31 | -1.61 | ---- | -3.06 | -0.12 | 2.94 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2020-2094 | 15.50% | 13.80% | -1.70% | 2036 | -1.56% | -0.05% | 1.51% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
|||||||||
Based on Intermediate Assumptions of the 2020 Trustees Report.