World Immigration News

Immigration and the future of Social Security

Release Date: 2024-12-17
Media: Brookings Institution
Summary: The U.S. Social Security system is facing a financial challenge with the projected exhaustion of its trust fund by 2035, largely due to demographic shifts. The fertility rate has declined, and life expectancy has increased, leading to an aging population. This has resulted in a higher old-age dependency ratio, putting pressure on the "pay-as-you-go" system. Immigration plays a crucial role in mitigating this issue by expanding the working-age population and supporting economic growth. Immigrants also contribute to higher fertility rates, which helps sustain the workforce. While immigration cannot permanently solve the problem, it extends the time Congress has to make necessary adjustments to taxes or benefits. However, the Trump administration's potential immigration restrictions could slow labor force growth, making it important to explore targeted legal immigration pathways to support the economy and Social Security system.
Tags: United States of America

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