Social Security Taxes Photo Illustration.
It has been projected that the Social Security Administration, which manages Social Security payments for about 72.5 million retirees, disabled people and children, will have funds depleted around 2035. But now, with the annual Social Security and Medicare Trustees Reports just released, funds will be sooner than expected.
The Old-Age and Survivors Insurance (OASI) Trust Fund is projected to become depleted in 2033, the same year as last year's estimate, with 77% of benefits payable at that time. The Disability Insurance (DI) Trust Fund is projected to remain solvent through 2099.
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If the reserves of the OASI and DI Trust Funds were combined, which would take an act of Congress, the pooled fund is projected to have enough revenue to pay all scheduled benefits and associated administrative costs until 2034, one year earlier than projected last year, with 81% of benefits payable at that time.
The new deadline is about nine months earlier than trustees were predicting a year ago, primarily caused by the Social Security Fairness Act, a new law that was passed earlier this year that increased benefits for nearly 3 million former public-sector workers who had pensions for jobs not covered by Social Security.
The annual report was released, following a meeting of the Social Security and Medicare Boards of Trustees, the U.S. Department of the Treasury—joined by Departments of Health and Human Services and Labor, the Centers for Medicare & Medicaid Services, and the Social Security Administration, on Wednesday.
The Board of Trustees comprises six members: Scott Bessent, Secretary of the Treasury and Managing Trustee; Frank Bisignano, Commissioner of Social Security; Robert F. Kennedy, Jr., Secretary of Health and Human Services; and Lori Chavez-DeRemer, Secretary of Labor, plus two public trustee positions, which are currently vacant.
“To ensure we serve the public and deliver high-quality service to the 185 million people who work and pay payroll taxes for Social Security and the 70 million beneficiaries who will receive benefits during 2025, the financial status of the trust funds remains a top priority for the Trump Administration,” said Commissioner of Social Security Frank Bisignano.
“Congress, along with the Social Security Administration and others committed to eliminating waste, fraud, and abuse, must work together to protect and strengthen the trust funds for the millions of Americans who rely on it – now and in the future – for a secure retirement or in the event of a disability.”
Social Security and Medicare “are vital programs that support tens of millions of Americans across the country,” said Bessent. “This data underscores the need for lawmakers to take action to support the long-term viability of these programs … Under President Trump’s whole-of-government initiative, the Administration will continue to root out waste, fraud, and abuse across federal agencies to ensure quality service for beneficiaries and responsible stewardship of taxpayer funds.”
Related: The Social Security crisis: 3 in 5 Americans say funds will be depleted by 2035
In March, the White House made a statement that “President Trump will always protect Social Security,” however, the Social Security Administration became a prime target of Elon Musk’s Department of Government Efficiency cost-cutting crusade since the president took office in January, with worker layoffs and office closures, creating instability among American workers.
“Hardworking Americans shouldn’t have to worry about receiving the retirement benefits they’ve earned,” Chavez-DeRemer said. “Unfortunately, this report shows the combined Social Security trust funds will be depleted by 2034. As President Trump continues reining in wasteful spending, citizens who’ve paid into Social Security will be able to enjoy the secure retirement they deserve. ”
“Congress must take prompt action to strengthen … the OASI Trust Fund,” said the trustees in a letter to President Trump. “Lawmakers could choose to increase revenues to the trust fund, reduce cost through modification of the OASI program benefit levels or eligibility requirements, or use a combination of methods to strengthen the trust fund’s financial condition. The Board recommends that lawmakers quickly enact legislation to make the necessary adjustments.”
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
