Washington, DC – The annual report released by Social Security and the Medicare Board of Trustees revealed that full Social Security benefits are expected to be depleted by 2035. This projection marks a slight improvement from last year’s estimate, which predicted the reserves to run dry by 2034. Commissioner of Social Security Martin O’Malley acknowledged the report as “a measure of good news” for the millions of Americans who rely on the program.
O’Malley attributed the increase in contributors to Social Security to strong economic policies that have resulted in significant wage growth, historic job creation, and a consistent low unemployment rate. He emphasized the importance of ongoing work across the country to sustain Social Security benefits, ensuring that the program can meet its obligations in the future.
Despite the positive outlook, O’Malley urged Congress to take action to safeguard and bolster Social Security funds to prevent a shortfall. If no intervention is made, the report projects that only 83% of benefits owed will be covered by available income sources by 2035.
Addressing the potential solutions, O’Malley stressed the need for Congress to consider various proposals aimed at eliminating the impending shortfall. He emphasized that the decision on how to address the issue – whether through increased revenue, benefit reductions, or a combination of measures – should be based on political preferences rather than affordability.
In 2023, Social Security paid out $1.379 trillion in benefits to around 67 million beneficiaries, with approximately 183 million individuals contributing through payroll taxes. The program’s total cost in 2023 amounted to $1,392 billion, exceeding the total income of $1,351 billion.
Looking ahead, the report anticipates that Social Security’s total cost will continue to outstrip its income in 2024 and subsequent years. With costs surpassing income since 2010, implementing changes sooner rather than later is recommended to ensure future generations can benefit from necessary revenue adjustments or benefit modifications. Social Security remains a crucial lifeline for millions of beneficiaries and workers, highlighting the importance of informed discussions, innovative solutions, and timely legislative actions to secure its sustainability for generations to come.