A Social Security trust fund used to pay retirement benefits may run out in late 2032, three months earlier than what had been projected last June, according to the new Social Security Administration annual trustees report released Tuesday.
Social Security uses incoming revenue from payroll taxes to pay benefits. When benefit payments exceed payroll tax income, the program relies on the trust funds to help make up the shortfall.
The report said that if the fund is depleted as projected, Social Security will only be able to pay 78% of retirement benefits.
The new projected depletion date follows the enactment of President Donald Trump’s “big beautiful” tax law, which Social Security’s chief actuary said in an August letter would have “material effects” on the financial status of the trust funds because it impacts income taxation of Social Security benefits. At that point, they estimated late 2032 for the retirement fund depletion date, pushed up from the 2025 trustees report estimate of the first quarter of 2033.
The OASI trust fund — formally known as Old-Age and Survivors Insurance, or OASI — if combined with the disability insurance trust fund, may be able to pay full benefits until the third quarter of 2034, when 83% of benefits will be payable, according to the new report. That estimate is unchanged from the prior trustees report.
The actuary's letter explained:
Because the revenue from income taxation of Social Security benefits is directed to the Social Security and Medicare trust funds, implementation of the OBBBA will have material effects on the financial status of the Social Security trust funds.
