Social Security retirement fund now projected to run short in 2032
Why it matters: If Congress does nothing, retirement benefits would be cut about 22%, while combined funds would pay full benefits only until 2034.
Social Security’s main retirement trust fund is now projected to be depleted in 2032, moving the expected shortfall three months earlier than last year’s forecast and underscoring pressure on Congress to act. The annual trustees report said the Old-Age and Survivors Insurance fund would then be able to pay about 78% of scheduled benefits. If lawmakers do not change taxes, benefits or both before that point, monthly checks would be reduced automatically. The report also said Social Security’s combined retirement and disability trust funds could pay full benefits until 2034, after which about 83% would be covered by incoming revenue. Trustees linked the strain to retiring baby boomers and a smaller worker-to-beneficiary ratio.