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3w ago

Social Security Trust Could Run Dry in 2034, Triggering Benefit Cuts

Lawmakers face a narrowing window to close a funding gap that could slash scheduled payments later this decade.

If Congress does not act, then U.S. workers face a 23% automatic Social Security benefit cut in a few years.
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Overview

  • The 2025 Trustees Report warns the Old-Age and Survivors Insurance fund may exhaust reserves by 2033, cutting retiree and survivor benefits to about 77 percent of scheduled levels.
  • When combined with Disability Insurance, the program’s trust funds are projected to be depleted by 2034, leaving only enough incoming revenue to cover roughly 81 percent of promised payments.
  • Congressional leaders must weigh options such as raising FICA payroll taxes, reducing scheduled benefits or identifying new revenue sources to restore solvency.
  • Baby-boomer retirements are set to swell the 65-plus population from 61 million to about 77 million by 2035, increasing the worker-to-beneficiary ratio strain on the system.
  • Experts advise Americans to view Social Security as a retirement supplement, plan for potential cuts and pressure elected officials for timely legislative fixes.