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WASHINGTON — The Social Security trust fund relied on by millions of American retirees will run out of money in late 2032 — earlier than previously forecast in part because of President Donald Trump's signature tax law enacted last year, the government said on Tuesday.
A Social Security Administration annual report projected that the Old-Age and Survivors Insurance trust fund, which finances retirement benefits, will become depleted and no longer be able to pay 100% of scheduled benefits in the fourth quarter of 2032, up from the first quarter of 2033 projected in the 2025 annual report.
At that time, the fund's projected income will be sufficient to pay just 78% of scheduled benefits, indicating beneficiaries will see a 22% cut in monthly Social Security retirement income.
Reserves for the related Disability Insurance trust fund — for those receiving long-term disability payments — should remain positive for the next 75 years, unchanged from last year's findings.
The two funds combined, however, will reach insolvency in the third quarter of 2034, also unchanged from a year ago. At that time, the combined fund will have income sufficient to pay just 83% of scheduled benefits, a percentage that declines to 65% by 2100.
The report found that the tax cuts enacted by Trump and the Republican Congress last year resulted in less income tax paid on Social Security benefits, depleting key income streams to the two funds.
The report also concluded that lower U.S. birth rates and lower net immigration also contributed to the change in the outlook.
The Social Security Administration is currently run by Commissioner Frank J. Bisignano, who was confirmed by the Senate in May 2025.
