For nearly 53 million retired workers, monthly Social Security benefits are indispensable. In 2023, the program pulled 22 million people above the federal poverty line, including 16.3 million adults aged 65 and older. However, Social Security’s financial health is on shaky ground.
The program’s 75-year long-term forecast has been warning of a funding shortfall since 1985. The latest report estimates a $25.1 trillion unfunded obligation through 2099. The most pressing issue is the Old-Age and Survivors Insurance (OASI) trust fund, which will be depleted by 2033. However, benefit payments are not expected to stop due to the payroll tax generating income.
Seven factors contribute to Social Security’s shaky foundation: declining worker-to-beneficiary ratio, increased longevity, rising income inequality, low fertility rate, decline in legal net migration, and low interest rates from the Federal Reserve. Congressional inaction is also a significant contributor, as lawmakers have failed to find common ground on reforming the program.
Solutions exist, but finding bipartisan agreement is crucial. With 60 votes needed in the Senate to amend the Social Security Act, progress is hindered by the inability of Republicans and Democrats to work together. As a result, benefit cuts are estimated eight years away, leaving the program’s future uncertain.
Source: https://www.fool.com/retirement/2025/06/29/social-security-benefit-cuts-are-coming-timeline