A new report from the Social Security Board of Trustees warns that the trust fund supporting Social Security retirement benefits may be depleted by 2033, when 77% of those benefits would still be payable. The program’s combined trust funds, including disability insurance, are projected to run out in 2034, one year earlier than previously estimated.
Congress is urging lawmakers to act quickly to avoid a benefit shortfall, with advocates for Social Security beneficiaries calling for legislation to shore up the program. Experts propose solutions ranging from raising taxes to cutting benefits or a combination of both.
The report takes into account the effects of the Social Security Fairness Act, which enhanced benefits for certain public pensioners. However, new tax proposals and other developments may pose significant challenges to the program’s financing.
To address the shortfall, Congress may need to consider options such as raising taxes, cutting benefits or a combination of both. A recent survey found that 85% of Americans prefer to raise taxes over cutting benefits, with many supporting policies like eliminating the payroll tax cap for earnings above $400,000 and gradually increasing the payroll tax rate.
As the program’s depletion date approaches, lawmakers are racing against time to phase in changes gradually and avoid harsh cuts or sharp tax increases. Social Security Commissioner Frank Bisignano emphasized the importance of protecting and strengthening the trust funds to ensure benefits for millions of Americans.
Source: https://www.cnbc.com/2025/06/18/social-security-administration-releases-new-trust-fund-depletion-dates.html