Social Security Retirement Fund Will Run Dry in 2033: Trustees Report

Fichtner said the political impasse is leading Americans towards an automatic across-the-board benefit cuts of over 20% when the Old-Age and Survivors Insurance trust fund runs dry.

“Only pragmatic, bipartisan policymaking can prevent these cuts,” Fichtner said.

Nancy Altman, president of Social Security Works, echoed that warning in her own written statement, though she highlighted some bright points in the new projection.

“Due to robust job growth, low unemployment and rising wages, more people than ever are contributing to Social Security and earning its needed protections,” Altman said. “As a result, Social Security can pay all promised benefits until 2035, one year longer than projected in last year’s report, and 83% of benefits thereafter, also an improvement over last year — even if Congress takes no action whatsoever.”

Other data in the new report shows the asset reserves of the combined trust funds declined by $41 billion in 2023 to a total of $2.788 trillion. The total annual cost of the program is projected to exceed total annual income in 2024 and remain higher throughout the 75-year projection period. Total costs began to be higher than total income in 2021, while Social Security’s cost has exceeded its non-interest income since 2010.

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