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Social Security Trust Fund Projected to Deplete in 2033, Forcing 23% Cut

Payroll taxes will cover only 77% of scheduled benefits after that unless Congress enacts reforms to close the funding gap

A lifeline for so many South Florida residents, Social security needs a lot more attention from Congress.

Overview

  • The 2025 Social Security Trustees Report moved the exhaustion date from 2036 to 2033 following updated demographic and economic forecasts.
  • Depletion would automatically reduce payments by roughly 23% for about 60 million retirees, survivors and disabled beneficiaries.
  • Baby Boomer retirements, slower wage growth and recent benefit expansions for public-sector workers have accelerated the fund’s drawdown since 2021.
  • Medicare’s Hospital Insurance fund is also expected to deplete by 2033 as rising costs outpace tax income.
  • Lawmakers are debating fixes such as raising or eliminating the payroll tax cap, boosting rates, adjusting benefit formulas or increasing the retirement age.