Social Security Trust Funds to Run Short by 2034, One Year Earlier Than Expected

Social Security Trust Funds Shortage: The Social Security Board of Trustees has shared its 2025 annual report, and it brings some worrying news. They say the combined money in the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds might run out by 2034 if no changes happen. That’s one year earlier than what they said last year.

By 2034, there will still be money coming in from payroll taxes, but it will only be enough to pay 81% of the benefits people are supposed to get, reported SSA. That means people could see smaller checks if Congress doesn’t fix the system in time.

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What the Report Found

In 2024, Social Security’s total reserves dropped by $67 billion, leaving $2.72 trillion in the fund. That sounds like a lot, but costs are rising fast. The program has been spending more money than it earns since 2010. Even when you count the interest income, it hasn’t been enough since 2021.

The OASI fund, which pays retirement and survivor benefits, is expected to run out of reserves by 2033. After that, it will only be able to pay 77% of promised benefits. The DI fund, which supports people with disabilities, is doing better. It’s not expected to run out of money at all in the next 75 years.

The report warns that unless Congress does something soon, the whole combined fund will be empty by 2034. That would be a big deal for the 70 million people getting Social Security and the 185 million who are working and paying into the system right now.

Other highlights of the Trustees Report include:

• Total income, including interest, to the combined OASI and DI Trust Funds amounted to $1.42 trillion in 2024. ($1.29 trillion from net payroll tax contributions, $55 billion from taxation of benefits, and $69 billion in interest)
• Total expenditures from the combined OASI and DI Trust Funds amounted to $1.48 trillion in 2024.
• Social Security paid benefits of $1.47 trillion in calendar year 2024. There were about 68 million beneficiaries at the end of the calendar year.
• The projected actuarial deficit over the 75-year long-range period is 3.82 percent of taxable payroll – higher than the 3.50 percent projected in last year’s report.
• During 2024, an estimated 184 million people had earnings covered by Social Security and paid payroll taxes.
• The cost of $7.4 billion to administer the Social Security program in 2024 was a very low 0.5 percent of total expenditures.
• The combined trust fund reserves earned interest at an effective annual rate of 2.5 percent in 2024.

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What are Social Securtiy Members Saying?

Frank Bisignano, who is the Social Security Commissioner, said, “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 of the trust funds remains a top priority for the Trump Administration.” He also said that it’s important for Congress and others to work together to stop fraud and waste, and to protect these funds for the future.

The Social Security Board of Trustees includes 6 members, but two public seats are still empty. The current members are:

• Scott Bessent (Treasury Secretary)
• Frank Bisignano (Social Security Commissioner)
• Robert F. Kennedy, Jr. (Health and Human Services Secretary)
• Lori Chavez-DeRemer (Labor Secretary)