For many aging Americans, Social Security income is a lifeline, providing a stable financial foundation. However, the program’s long-term financial stability is at risk due to projected benefit cuts and increased costs.
The latest update from the Social Security Board of Trustees warns that the Old-Age and Survivors Insurance (OASI) trust fund will exhaust its asset reserves by 2033, sparking concerns about the sustainability of the payout schedule. If this happens, sweeping benefit cuts of up to 23% may be necessary in eight years.
President Trump’s flagship tax and spending law, “big, beautiful bill,” is expected to speed up the timeline to across-the-board Social Security benefit cuts. Analysis by the Office of the Chief Actuary (OACT) reveals that changes in tax collection will adversely impact the program, including increasing standard deductions for seniors and allowing workers to deduct more tips from their taxable income.
The OASDI trust fund is projected to move its asset reserve depletion date forward from 2034 to 2034. Demographic shifts, such as declining fertility rates, reduced immigration, and rising income inequality, are exacerbating the financial struggles of Social Security.
Addressing these issues requires more than just tax and spending laws. Elected lawmakers must work towards strengthening the program by finding middle ground between their parties. Until then, Americans relying on Social Security will face an uncertain future.
Source: https://www.fool.com/retirement/2025/08/17/trump-one-big-beautiful-bill-social-security-cuts