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Social Security funds now projected to run out in 2034

The trustees advanced the funds depletion date by one year

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Key Insights

  • Social Security’s combined trust funds now projected to deplete in 2034, one year earlier than previously estimated.
  • Old-Age and Survivors Insurance (OASI) Trust Fund depletion remains set for 2033, while Disability Insurance (DI) Trust Fund remains stable.
  • Without congressional action, only 81% of scheduled benefits will be payable after depletion.

In a sobering update on the financial health of Social Security, the program’s Board of Trustees has moved up the projected depletion date of its combined trust funds to 2034, one year earlier than previously forecast. The annual report released this week outlines significant fiscal challenges ahead unless legislative action is taken to bolster the program’s long-term sustainability.

Under current law, Social Security is not allowed to borrow money to pay benefits. Once the trust funds are exhausted, the program can pay only as much as it receives in taxes.

The combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds are now projected to have sufficient revenue to pay full benefits until 2034. After that, incoming revenue will cover only about 81% of scheduled benefits, signaling a critical juncture for the nation’s retirement and disability insurance programs.

OASI still on track for 2033 depletion

The OASI Trust Fund, which covers retirement and survivors benefits, is still expected to become depleted in 2033, consistent with last year’s projections. At that point, it will only be able to pay approximately 77% of scheduled benefits from incoming payroll taxes and other revenue. 

In contrast, the DI Trust Fund, which supports individuals with disabilities, is not expected to be depleted within the next 75 years—highlighting divergent financial trajectories within the Social Security system.

The Trustees report revealed that the trust funds’ reserves dropped by $67 billion in 2024, leaving a total balance of $2.72 trillion. This decline underscores a persistent financial mismatch: total expenditures reached $1.48 trillion in 2024, exceeding the $1.42 trillion in total income. While the program brought in $1.29 trillion in payroll taxes, $55 billion from taxation of benefits, and $69 billion in interest, it still fell short of meeting all obligations.

This gap between income and cost has existed since 2021, with non-interest income falling behind expenditures since 2010. The Trustees now project that annual program costs will continue to outpace income throughout the entire 75-year outlook period.

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