The asset reserves of the Social Security Old-Age and Survivors Insurance Trust Fund, which pays benefits to retirees, are projected to become depleted in 2033 — the same as projected in 2023.
Income from payroll tax revenue is expected to fund 79% of scheduled Social Security benefits in 2033, according to the just-released 2024 trustees report.
The Disability Insurance Trust Fund is not projected to run out within the trustees' 75-year projection period — the same conclusion made in the group's 2023 report.
When combined, funds for both Social Security and disability payments are set to become depleted and unable to pay scheduled benefits in full on a timely basis in 2035 — one year later than projected in 2023. At that point, tax revenue used to fund both programs is expected to cover 83% of scheduled benefits.
In written comments shared with ThinkAdvisor about the new projections, Jason Fichtner, chief economist at the Bipartisan Policy Center, said the American public has long known that Social Security is on an unsustainable financial path — but that doesn't make today's news any less troubling.
"Today's Social Security Trustees report marks yet another year of inaction by lawmakers to protect this crucial program on which so many Americans depend," Fichtner said. "Too few politicians are willing to propose serious reforms and make the difficult choices needed to strengthen and save the program. Instead, leading voices on both sides of the aisle have buried their heads in the sand, proposing purely partisan policies or vowing not to touch the program."
