Social Security Trust Fund Reserves Could Be Depleted by 2034. What That Means for Benefits

Recipients of Social Security benefits could see smaller checks in less than a decade. 

The funds that provide a financial cushion for Social Security benefits—the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trusts—are projected to run out of reserves starting in 2034, according to an annual report released Wednesday by the Social Security Board of Trustees. At that point, the combined funds would have enough to pay 81% of scheduled benefits, the report said.

The trust funds are being depleted because the Social Security Administration currently pays out more in benefits than it receives in payroll tax revenue. About 68 million people received benefits payments from Social Security last year.

The trustees’ projection showed that the funds are being drained faster than they estimated last year. Implementing the Social Security Fairness Act at the beginning of this year increased benefits for more than 2.8 million former public-sector workers whose jobs were previously not covered by Social Security.

Many Americans are increasingly worried that they cannot rely on receiving their full Social Security benefits when they retire. Congress would need to either cut beneficiaries’ payments or raise taxes to replenish the reserves.

Congress has not addressed the shortfall in its recent budget discussions. However, Commissioner of Social Security Frank Bisignano said in a statement that the trusts’ financial status “remains a top priority” for President Donald Trump’s administration.