For the first time since the 1980s, Social Security will have to pay out more in benefits than it will take in. The program is projected to run a $10 billion deficit in 2010 and a $9 billion deficit in 2011, but the funding gap will not affect payments to beneficiaries because the program has run a surplus in the past.
Increases in benefit applications during the recession have caused the deficits: Applications for retirement benefits have jumped 23% from the previous year, with disability claims up about 20%.
