For millions of Americans, Social Security is more than just a government program; it’s the main source of income during retirement. Each month, retirees, people with disabilities, and survivors of workers receive payments that help them pay for housing, food, medicine, and other basic needs. With living costs rising every year, these payments have become even more important, especially for people who have little or no savings.
But now, there’s growing concern about the future of these benefits. Many people are worried after hearing news that Social Security may not be able to keep paying the full amount in the years to come. While no benefits have been cut yet, government reports show that time is running out to fix the program’s finances. If lawmakers don’t take action soon, millions could see smaller Social Security checks starting in 2033 or 2034.
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What’s Happening With Social Security
Social Security is mostly paid for by taxes taken from workers’ paychecks. This is called the payroll tax. Employers match this amount, and the total goes into two main trust funds. One fund pays retirement and survivor benefits, and the other pays disability benefits. These trust funds also earn interest, but the taxes collected are the main source of money.
However, the number of workers paying into the system is not growing fast enough. At the same time, more people are retiring and living longer. This means Social Security is paying out more money than it’s taking in. Because of this, the trust funds are being used to cover the difference, but they won’t last forever.
When Will the Money Run Out?
According to the 2025 Trustees Report, the Old-Age and Survivors Insurance (OASI) fund will run out of money by 2033. If it is combined with the Disability Insurance (DI) fund, the program could last until 2034. After that, Social Security will only have enough money to pay 77% to 81% of scheduled benefits.
This means that if no changes are made, people getting $1,800 per month now could see that drop to around $1,400. These reductions would affect both current and future retirees, unless lawmakers take action before the trust funds are depleted.
Recent Laws Added More Pressure
Two laws passed in 2025 have made the situation more difficult for Social Security.
- In January 2025, the Social Security Fairness Act became law. It removed two rules that had reduced benefits for some government workers. While this helped many people receive higher payments, it also increased the total cost of the program.
- In July 2025, a law called the One Big Beautiful Bill (OBBB) gave tax breaks to seniors by letting them deduct more from their taxable income. This helped lower taxes for many retirees, but also reduced the amount of tax money going into Social Security.
These changes, although helpful in the short term, have worsened the financial outlook for the program.
Has Social Security Ever Been Cut?
Despite past warnings, Social Security has never reduced benefits. Congress has always stepped in to make changes and avoid cuts. But now, with less than 10 years left before the trust funds run out, there is growing pressure for lawmakers to act quickly.
What Can Be Done to Save It?
There are a few ways to fix Social Security:
- Raise the full retirement age from 67 to 68 or 69
- Increase payroll taxes slightly
- Change the formula used to calculate benefits
- Modify how yearly cost-of-living adjustments are figured
All of these ideas would take time to put into place, which is why experts say changes must begin soon.
New Proposal on the Table
Some lawmakers are also looking at creating a special investment fund to support Social Security. The government would manage this fund and would grow over time, helping to cover future payments. But this plan is still new and may not fully fix the problem.
For now, benefits continue as normal, but the clock is ticking. If nothing changes, future retirees may receive less than expected, starting in just a few years.