Latest figures reveal the current state of Social Security

The Social Security programme, a cornerstone of financial support for millions of Americans, is facing challenges due to funding issues. Here's a breakdown of the current situation and potential solutions.

The 2025 Old Age, Survivors and Disability Insurance (OASDI) Trustees Report has revealed that full scheduled benefits for Old-Age and Survivors Insurance (OASI) will only be payable through 2033. After this year, only 77% of benefits for OASI are projected to be paid. This means that benefits will not disappear in 2033, but reductions may be necessary unless Congress acts.

The 1983 Social Security reform, which addressed similar financing problems, was proposed and enacted primarily under the leadership of President Ronald Reagan and the bipartisan National Commission on Social Security Reform, also known as the Greenspan Commission. Ideas on the table for potential reforms include lifting the payroll tax cap, gradually raising the FICA rate, or making more forms of compensation subject to payroll taxes.

In 2022, Social Security made up at least half of total personal income for 38.3 million Americans. For 16.4 million people, it was their only income source. The total number of Social Security beneficiaries is 69.4 million. About 75% of Social Security benefits go to retired workers. The rest of the benefits support spouses and children of retirees, survivors of deceased workers, and people with disabilities.

As of now, 7.2 million disabled workers and 86,000 spouses receive Social Security benefits. Meanwhile, 1 million children also benefit from the programme. Disability Insurance benefits remain fully funded through at least 2099. Medicare Parts B (outpatient care) and D (prescription drug coverage) are funded indefinitely through a combination of enrollee premiums and general revenue.

However, Medicare's Hospital Insurance (HI, or Part A) trust fund is expected to be depleted by 2033, after which only 89% of benefits would be payable. This underscores the need for thoughtful, phased reforms that maintain the programme's core protections.

For more information on the list of reform options, visit ssa.gov/OACT/solvency. It's crucial to address these issues to ensure the long-term sustainability of Social Security and Medicare for future generations.