This report presents a sober examination of the looming, long-term federal budget deficits facing the United States. The report also strongly warns that, with the retirement of the baby-boom generation a few short years away, policymakers cannot afford to wait any longer to make the difficult decisions necessary to prepare the country for the economic consequences of an aging population. Prudent action is needed now on all budgetary fronts to avoid a financial debacle -with significant implications for important issues such as taxes, health care, and Social Security.