Social Security Trust Fund Projected Depleted by 2032

The Social Security retirement trust fund is projected to be depleted by the fourth quarter of 2032. This shortfall would leave incoming revenue covering only 78 percent of scheduled benefits, resulting in an approximate 22 percent benefit reduction for more than 60 million Americans.

While the program will not run out of money entirely, the United States Congress must take legislative action to prevent the cuts through tax increases, benefit reductions, or a combination of both. Some Republicans have proposed raising the income ceiling on payroll taxes to increase contributions from wealthier households.

Analysis from the Morningstar Center for Retirement & Policy Studies indicates that Social Security is a primary income source for low- and middle-income retirees. Roughly 42 percent of households rely on the program for at least half of their retirement income.