Social Security remains one of the most important programs in the United States, supporting millions of retired and disabled Americans.
However, many people are concerned about whether the program is in financial trouble or could run out of money.
Understanding what’s happening with the Social Security trust funds, how it affects future benefits, and what can be done about it helps separate fact from fear.
Is Social Security running out of money?
According to the 2025 Social Security Trustees Report, the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds are expected to be depleted by 2034 if no changes are made.
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This does not mean Social Security will disappear.
The Social Security Administration (SSA) still collects payroll taxes from workers, which will continue to fund benefits.
After depletion, these ongoing revenues are projected to cover around 77% of scheduled benefits.
In other words, even if Congress takes no action, Social Security will still have money to pay most benefits, just not the full amount promised under current law.
Why is Social Security facing financial problems?
The challenge mainly comes from demographic changes.
The U.S. population is aging, meaning there are more retirees receiving benefits and fewer workers paying payroll taxes.
In 1960, there were about five workers for every retiree.
Today, that ratio is closer to three workers per beneficiary, and it is expected to fall further.
People are also living longer, which increases the total amount paid out over time.
At the same time, wage growth and the taxable income base have not risen fast enough to keep up with benefit costs.
This growing gap between income and outgo is the main reason experts warn that the trust funds will eventually run short.
What happens when the trust funds are depleted?
If the trust funds are depleted by 2034, Social Security will still have a steady stream of income from payroll taxes.
However, that income alone would only be enough to pay about three-fourths of scheduled benefits.
That means if Congress does nothing, benefits would automatically be reduced by roughly 23%.
For example, someone expecting a $2,000 monthly check might only receive around $1,540.
While payments will not stop, these automatic reductions could significantly impact retirees and people with disabilities who rely heavily on their monthly benefits.
Can Congress fix Social Security’s funding problem?
Yes, and most experts agree that the issue is fixable with timely legislative action.
Congress has several options to strengthen the program:
- Raise the payroll tax rate slightly for workers and employers.
- Lift or eliminate the wage base cap so higher earners pay Social Security tax on all their income.
- Gradually increase the retirement age to reflect longer life expectancy.
- Adjust the benefit formula or cost-of-living calculations to slow benefit growth.
Lawmakers could use a combination of these changes to close the funding gap.
The earlier Congress acts, the smaller and more gradual the adjustments can be.
What does this mean for current retirees?
Current retirees should not panic. The SSA has confirmed that people already receiving benefits will continue to get them.
The trust funds have more than $2 trillion in reserves, and regular payroll taxes still flow into the system each month.
While long-term reforms are needed, the system is not in immediate crisis.
However, individuals planning for retirement should understand that future benefits could be smaller if Congress delays taking action.
How does this affect younger workers?
Younger workers face the greatest uncertainty. Without changes, the Social Security system will pay less than full benefits by the time they retire.
For example, someone in their 30s today might see only 75% to 80% of what they are currently promised.
Experts recommend that younger Americans supplement their future income with personal savings, retirement accounts, or employer-sponsored plans like 401(k)s.
Counting only on Social Security may not be enough for a comfortable retirement if the funding gap isn’t fixed.
What is being done now to protect Social Security?
Several proposals are already on the table. Senator Bernie Sanders and others have introduced bills like the Social Security Expansion Act, which would raise taxes on the wealthiest Americans and use the additional revenue to strengthen the trust funds.
Other lawmakers favor bipartisan plans that combine modest tax increases with small benefit adjustments.