Social Security to be depleted by 2034, board says

The combined Social Security reserves for disability insurance, survivors' insurance, and retirement are projected to be spent by 2034, according to a new report out this week. The Social Security Board of Trustees, which comprises four members of the Trump administration, released its annual report on Tuesday.

If Social Security reserves are depleted, the funds would only be able to pay out 83% of scheduled benefits in 2034, according to the report. The survivors' insurance and retirement fund could run out slightly earlier, in 2032, but the government could combine it with the disability insurance fund to continue full payments until 2034, according to the report. The projection was consistent with the prior year’s findings, the board wrote.

The reserves in both funds dropped by $160 billion in 2025 and are now at a combined $2.56 trillion. About 70 million people received Social Security benefits in 2025, while roughly 185 million people contributed to the funds via payroll taxes.

What’s draining the cash, and how much is lost each year?

• Falling birth rates and decreased immigration were expected to decrease payroll contributions to the program.

• The annual cost of Social Security is projected to exceed its annual income this year, which has been the case since 2021. In 2025, the program’s expenditures hit $1.61 trillion, while its income was $1.45 trillion. That income came from payroll taxes, taxation of benefits, and interest.

Dig deeper: Listen to David L. Bahnsen’s analysis of the latest jobs report and inflation.