Recently, there has been significant discussion in the news about the future of Social Security funding. As a result, many beneficiaries are wondering, “Will Social Security run out of money?” This topic has left many feeling nervous and uncertain about the future of these programs.
In this article, we’ll address whether Social Security will run out, what will happen if Social Security runs out, and what this means for the future of your benefits.
Don’t face Social Security alone.
Key Takeaways
- Social Security is unlikely to run out of money completely. Even if trust fund reserves are depleted, payroll taxes would continue funding a large portion of benefits.
- Future funding challenges are largely driven by demographic changes. An aging population and fewer workers paying into the system are putting pressure on Social Security’s finances.
- Lawmakers have options to strengthen the program. Changes such as adjusting benefits, increasing payroll taxes, or combining both approaches could help maintain Social Security for future generations.
In this article about what will happen when Social Security runs out:
- Will Social Security run out of money?
- Why are the trust funds running out of money?
- What will happen when Social Security runs out?
- When will Social Security run out of money?
- What can be done to prevent Social Security from running out of money in the future?
- How Woods & Woods can help
- Frequently asked questions
Will Social Security run out of money?
Surveys consistently show many Americans are worried about Social Security’s future. In a December 2025 survey by the Cato Institute, it was found that:
- 30% of people don’t believe Social Security will exist by the time they retire
- 58% think younger workers will be worse off than current retirees
- 70% expect Social Security benefits to be cut in the future
- 49% were not aware that their payroll taxes fund current Social Security benefits
- 62% believe Congress has “broken its promises” in managing Social Security
Concerns about the program’s future are widespread. In another survey from the Nationwide Retirement Institute, more than 80% of Americans who receive or plan to receive Social Security benefits are concerned about the long-term stability of Social Security programs, while 74% are worried the programs will run out of money in their lifetime.
Despite these concerns, the Social Security Administration (SSA) does not expect the program to run out of money completely.
According to the 2025 Social Security and Medicare Trustees Report, the Social Security trust funds are projected to pay 100% of scheduled retirement benefits through 2033, and all disability benefits through 2099.
What are Social Security trust funds?
The Social Security trust funds are financial accounts held by the U.S. Treasury and are funded by payroll taxes under the Federal Insurance Contributions Act (FICA). Money collected through these payroll taxes is deposited into the trust funds and used to pay Social Security benefits.
By law, these accounts can only be used to pay benefits and to cover the administrative costs of running the Social Security program.
Why are the trust funds running out of money?
Since the early 2010s, Social Security has paid out more in benefits than it collects in payroll taxes every year. As a result, the program has been relying on reserves from Social Security trust funds to make up the difference. If this trend continues and Congress does not take action, it could cause problems for Social Security programs
One of the main reasons the trust funds have weakened in recent decades is the country’s changing age demographics. The large baby boomer generation has been reaching retirement age, increasing the number of people receiving Social Security benefits. Baby boomers first became eligible for early Social Security retirement benefits in 2008, and their growing numbers have increased the demand for benefits.
At the same time, Americans are living longer and having fewer children than previous generations. This means there are more beneficiaries receiving benefits and fewer workers paying payroll taxes to support the Social Security system.
According to the SSA, the population of Americans age 65 and older is projected to reach about 77 million by 2035.
Today, Social Security remains a major source of income for many older Americans. In fact, nearly nine out of 10 people 65 and older were receiving a monthly benefit as of 2024.
These trends have raised concerns about the long-term health of Social Security’s trust funds. While the program is not expected to disappear, it’s important to understand what could happen if those reserves were eventually depleted.
What will happen when Social Security runs out?
Social Security primarily pays benefits using two main trust funds. One fund, the Old-Age and Survivors Insurance (OASI) Trust Fund, pays retirement and survivor benefits, while the other, the Disability Insurance (DI) Trust Fund, pays disability benefits, such as Social Security Disability Insurance (SSDI).
If a Social Security trust fund runs out of reserves, its programs could face a major legal and financial challenge. The Social Security Act says beneficiaries are entitled to their full benefits, but another law, the Antideficiency Act, prevents government agencies from spending more money than they have available. This means the Social Security Administration might not have the authority to pay full benefits if there isn’t enough funding.
However, even if reserves were depleted, Social Security would still collect payroll taxes. That income would be enough to pay benefits, though payments might be reduced or delayed.
When will Social Security run out of money?
Those projections can seem alarming, especially if Social Security benefits are your primary source of income. However, it’s important to understand that the Social Security program is funded through two separate trust funds: the OASI and DI trusts.
Looking at these funds provides additional context. According to the SSA, the Disability Insurance (DI) Trust Fund is projected to pay 100% of scheduled benefits through at least 2099.
Meanwhile, the OASI Trust Fund is projected to pay full benefits through 2033. After that point, it would likely be able to pay about 77% of scheduled benefits unless Congress takes action.
What can be done to prevent Social Security from running out of money in the future?
To prevent this situation, policymakers may need to make difficult decisions, such as reducing benefits, increasing payroll taxes, or combining both approaches.
Some proposed benefits changes in recent years include:
- Raising the full retirement age
- Reducing benefits for higher-income individuals
- Reducing annual cost-of-living adjustments (COLA) for high-earning beneficiaries
Other proposals focus on increasing revenue for the program. For example, lawmakers have discussed taxing other forms of income, such as business income and investment earnings. Another option would be allowing Social Security to draw from general government revenues, similar to how Medicare is funded in part.
The longer Congress waits, the harder it will be to get Social Security back on track. Acting sooner rather than later would allow these changes to be smaller and spread out over time, giving workers and beneficiaries more time to plan.
How Woods & Woods can help
Having a disability shouldn’t mean losing your peace of mind. At Woods & Woods, we help individuals with disabilities connect with legal help. If you’re seeking SSDI benefits, call us today for a free case evaluation.
Get the benefits you earned.
Frequently asked questions
Social Security is unlikely to run out of money entirely. Even if the trust funds are depleted, payroll taxes would continue to fund a large portion of benefits (about 81%). Without changes from Congress, however, payments could be reduced in the event the SSA runs out of reserves.
If Social Security’s trust funds run out of reserves, the program would still collect payroll taxes. Those funds would likely cover most, but not all, scheduled benefits, which could result in reduced payments unless lawmakers take action.
Lori Underwood
Lori Underwood received her law degree from Northern Kentucky University. She previously practiced Social Security disability and personal injury law and was a juvenile court attorney.
She has been an attorney at
Woods & Woods since 2014.
