Social Security is not running out of money and will not stop paying benefits. But without Congressional action, benefit cuts of approximately 17% could occur in 2035.
Critical clarification: Trust fund depletion does not mean zero benefits. Ongoing payroll taxes cover ~83% of scheduled benefits even after depletion.
Why the shortfall exists
The baby boomer retirement wave, increasing life expectancy, and declining birth rates have reduced the worker-to-beneficiary ratio from 3.3:1 to a projected 2.3:1 by 2035.
Planning by age
55+: expect full benefits — Congress protects those near retirement. 40-54: model 80-90% of projected benefits. Under 40: use 75-85%.
Use our Retirement Planner to model this.
Frequently asked questions
Will Social Security run out?
No — the trust fund may deplete by 2035, but payroll taxes would still cover ~83% of benefits.
What happens in 2035 without Congressional action?
Automatic ~17% cut to scheduled benefits.
How should I plan?
Under 50: use 75-85% of projected benefits. 55+: expect full benefits.
Why is there a funding gap?
Baby boomer retirement, longer life expectancy, declining birth rates.
What could Congress do?
Raise payroll tax rate, raise the earnings cap, raise FRA, or slow benefit growth for high earners.