Millions of Americans who rely on Social Security just got hit with some tough news. The program is now expected to run into trouble a year sooner than experts had originally thought. If you depend on these benefits—or plan to—you are going to want to pay close attention to what is going on.
When will Social Security run out of money?
The latest report from the Social Security Board of Trustees says that the trust fund will be depleted by 2034, not 2035 as earlier predicted. This means that unless Congress takes action, the program will not be able to pay full benefits starting in 2034.
Right now, about 70 million people receive benefits from Social Security. That number includes retirees, people with disabilities, and survivors of deceased workers. When the trust fund runs out, the system will only be able to cover about 81% of scheduled benefits using the money it takes in from taxes.
How much will your benefits be cut?
Do not worry—your checks will not disappear completely. But if nothing changes before 2034, you could see a 19% cut in your monthly Social Security payment.
Let us break that down:
- The average monthly benefit today is around $1,976.
- With a 19% cut, that drops to about $1,600 per month.
That is a big difference, especially if you rely on Social Security for most of your income. For nearly 50% of older Americans, these benefits are their main source of money after retirement.
Why is Social Security in trouble?
There are a few reasons the trust fund is running low faster than expected:
- More people are retiring, especially as baby boomers get older.
- The U.S. population is aging, which means fewer workers are paying into the system.
- A new law called the Social Security Fairness Act increased benefits for millions of people, raising costs even more.
All of these factors have pushed up the program’s expenses while income from payroll taxes has not kept pace.
What is the Social Security Fairness Act?
This law went into effect on January 5, 2025. It removed two older rules that had limited how much some workers—especially those with public pensions—could receive from Social Security.
As a result:
- Around 3.2 million people are now getting higher monthly benefits.
- Some of these increases are as much as $1,000 more per month.
While this is great news for those recipients, it also added more financial pressure to the system.
Can Congress fix the problem?
Yes, but they need to act soon. Lawmakers have a few options to keep the program going strong:
- Raise revenue by making higher earners pay more into Social Security. Right now, only income up to $176,100 is taxed.
- Cut benefits in some way, which many people and advocates strongly oppose.
- Raise the retirement age, which would also reduce benefits over time.
Nancy Altman, president of Social Security Works, said, “Any politician who does not support increasing Social Security’s revenue is, by default, supporting benefit cuts.”
And Max Richtman, who leads the National Committee to Preserve Social Security and Medicare, added that asking seniors to bear the burden would be unfair, since nearly half rely on Social Security for all or most of their income.
Why are more people filing early?
The report also noted that more Americans are claiming benefits earlier than expected. As of May 2025, 1.8 million people had filed, a 17% jump from last year.
That number could hit 4 million new claims this year. Experts say some of this increase may be driven by people feeling anxious about the future of Social Security and wanting to lock in benefits while they can.
Related article:
Goodbye to Medicare and Social Security: new go-broke dates released for key social programs
What is the Social Security Fairness Act and how could it affect you?
