The main trust fund used to pay Social Security benefits is projected to be depleted by 2033, and when combined with Social Security Disability Insurance, the forecast gets even worse. In its annual report released on Wednesday, June 18, the Social Security Administration (SSA) said total reserves for both programs are now expected to run out by 2034, one year earlier than last year’s projection.
The trust fund lost $67 billion in 2024, continuing a trend that began in 2021, when program costs started exceeding income revenue. As of this year, total reserves stand at $2.72 trillion, but they’re shrinking fast.
How many Americans rely on Social Security?
According to Pew Research, 73.9 million Americans were receiving Social Security benefits as of April 2025, including 52.6 million retirees. That same month, the program paid out $134.5 billion.
The issue, according to experts, is the number of beneficiaries is rising faster than the number paying into the system. In 2024, 184 million Americans contributed to Social Security through payroll taxes but that’s not enough to keep up with demand. By 2033, analysts project the annual shortfall will reach $414.5 billion.
The current payroll tax is 12.4%, split evenly between workers and employers. If lawmakers make no changes, the SSA warns that by 2034, it will only be able to pay about 81% of scheduled benefits.
To help close the gap, the SSA has already started redeeming its stockpile of U.S. Treasury securities that have built up in the trust fund over time.
What is the Social Security Administration saying about the latest forecast?
SSA Commissioner Frank Bisignano acknowledged the urgency, calling the trust fund’s financial status “a top priority for the Trump administration.”
“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 remains a top priority for the Trump Administration,” he said.
Bisignano also called on Congress to act, saying lawmakers and the SSA must work together to eliminate “waste, fraud, and abuse” and “to protect and strengthen the trust fund for the millions of Americans who rely on it — now and in the future.”
What are the possible solutions in Congress?
To address the looming shortfall, lawmakers may consider raising payroll taxes, cutting benefits or some combination of both — none of which are politically popular. Another proposal gaining traction: raising the retirement age.
Despite repeated warnings from the SSA and economists, Congress has so far taken no major action to secure the future of Social Security.
contributed to this report.