Social Security Retirement Trust Fund May Be Depleted by 2033, Trustees Warn

The Social Security retirement trust fund may run out of money by 2033, according to the annual report released Wednesday by the Social Security Board of Trustees. At that point, only 77% of scheduled retirement benefits would be payable.

The combined reserves of Social Security’s Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds are projected to be exhausted by 2034, a year earlier than forecasted in 2024. Once depleted, the system could fund just 81% of combined benefits. The DI fund alone, however, is expected to remain solvent through at least 2099.

Doctor and two patients | Source: Pexels

Medicare’s Hospital Insurance trust fund, which finances Medicare Part A, is also facing financial strain. The trustees’ report projects its depletion by 2033, three years sooner than previously estimated. After that, the fund would only cover 89% of benefits.

These revised estimates follow implementation of the Social Security Fairness Act in 2025, which expanded benefits for certain public pension recipients. However, the projections do not account for recent tax proposals, tariffs, or immigration changes, which some experts warn could further threaten the program’s solvency.

Frank Bisignano, Commissioner of the Social Security Administration, emphasized the urgency of addressing the funding shortfall. “The financial status of the trust funds is a top priority,” he said, urging Congress to act to “protect and strengthen” the programs.

Doctor holding a pill bottle and money | Source: Pexels

Advocacy groups echoed the call. AARP CEO Myechia Minter-Jordan stated, “Congress must act to protect and strengthen the Social Security that Americans have earned.” Maya MacGuineas of the Committee for a Responsible Federal Budget warned that lawmakers are “running out of time to phase in changes gradually.”

While policymakers debate potential solutions, a recent survey found 85% of Americans favor raising taxes over cutting benefits to preserve Social Security’s future.