Critical Social Security Fund Expected To Run Dry In 2032, New Report Says

BreakingBusinessCritical Social Security Fund Expected To Run Dry In 2032, New Report SaysByMary Whitfill Roeloffs,Forbes Staff. Mary Roeloffs is a Forbes breaking news reporter covering pop culture.Follow AuthorJun 09, 2026, 02:35pm EDTToplineA new study found the critical Social Security fund that allows the program to cover the disparity between income and beneficiary payouts is projected to run out of money in late 2032, putting the monthly income of tens of millions at risk sooner than previously thought, unless Congress acts to shore up the fund.A Social Security card sits alongside checks from the U.S. Treasury.Getty ImagesKey FactsThe Social Security Administration's annual trustees report predicts the Old-Age and Survivors Insurance (OASI) Trust Fund will run out of money in late 2032, at which point only 78% of retirement benefits will be payable. That scenario would result in the typical benefit payment going down 24%, according to recent analysis from the nonpartisan Committee for a Responsible Federal Budget, which equates to a nationwide average of about $500 in monthly cuts. If Social Security combines the OASI trust fund with the disability insurance trust fund, retirement benefits would remain fully funded through the third quarter of 2034, and benefits could be paid out at 83% going forward. Combining the trust funds is prohibited by law, and while Congress could authorize the shifting of money to cover shortfalls, one economic expert told CNBC the move would be “merely a band-aid” patching the larger problem of Social Security insolvency. It's up to Congress to make policy changes that would lessen or stop the looming benefit cuts, and actions taken to avoid similar outcomes in the past included raising the retirement age and taxing benefits. The new prediction also takes into account a lower projected birth rate (1.75 children per woman as opposed to 1.9 children) and a lower number of temporary and undocumented immigrants working in th...