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Tuesday, May 7, 2024

Social Security Insolvency in 2035

From the Social Security Administration:

The Social Security Board of Trustees today released its annual report on the financial status of the health of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to have enough dedicated revenue to pay all scheduled benefits and associated administrative costs until 2035, one year later than projected last year, with 83 percent of benefits payable at that time.
  • In the 2024 Annual Report to Congress, the Trustees announced:The asset reserves of the combined OASI and DI 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 cost began to be higher than total income in 2021. Social Security’s cost has exceeded its non-interest income since 2010.
  • The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2035. At that time, there would be sufficient income coming in to pay 83 percent of scheduled benefits.

Other highlights of the Trustees Report include: 
  • Total income, including interest, to the combined OASI and DI Trust Funds amounted to $1.351 trillion in 2023. ($1.233 trillion from net payroll tax contributions, $51 billion from taxation of benefits, and $67 billion in interest)
  • Total expenditures from the combined OASI and DI Trust Funds amounted to $1.392 trillion in 2023.
  • Social Security paid benefits of $1.379 trillion in calendar year 2023. There were about 67 million beneficiaries at the end of the calendar year.
  • The projected actuarial deficit over the 75-year long-range period is 3.50 percent of taxable payroll – lower than the 3.61 percent projected in last year’s report.
  • During 2023, an estimated 183 million people had earnings covered by Social Security and paid payroll taxes.
  • The cost of $7.2 billion to administer the Social Security program in 2023 was a very low 0.5 percent of total expenditures.
  • The combined trust fund asset reserves earned interest at an effective annual rate of 2.4 percent in 2023.

View the 2024 Trustees Report at