Social security: what's on the table.(Social Security Administration on the future of social security)

Make no mistake: If you are a baby boomer or younger, in the future you will probably pay more in Social Security taxes than you do now You will likely also receive smaller benefits than current retirees, regardless of which of the many Social Security proposals being discussed in Washington ultimately becomes law.

The harsh reality is that Social Security cannot pay the benefits that have been promised under the current 12.4 percent payroll tax without incurring an approximate $88 billion shortfall by 2041, when today's 31-year-olds turn 67 and become eligible for full benefits. The gap widens to $4 trillion by 2079.

The problem in a nutshell: Starting in about 12 years, the system will take in less tax revenue than needed to support retired baby boomers. (Currently, the government takes in more tax revenue than needed to pay benefits, and the surplus is lent to the U.S. Treasury, which issues IOUs in the form of bonds.) In 2017, however, the Social Security Administration will start using interest on the bonds to supplement the shortfall in tax revenue. By about 2041, Social Security will be able to pay only about 74 percent of scheduled benefits to newly retired workers.

In coming months, CONSUMER REPORTS will "shop" proposed Social Security overhauls to see how well each meets the needs of the millions of elderly, disabled, widowed, and orphaned beneficiaries who rely on it as a major source of income. Among the factors we believe are important for consumers:

* The extent to which a proposal closes Social Security's budget gap.