Ask Rusty: What If Social Security’s Money Runs Short for Benefits?

Dear Rusty: What happens to seniors if the nation runs short of funds to keep paying monthly Social Security benefits? I am 78 years old and Social Security is my only income. Signed: Worried Senior

Dear Worried Senior: Please try not to worry. The government is not expected to run out of money for Social Security checks. As long as workers continue paying into the system, the program will always have at least some revenue to pay benefits. The concern you have read about involves reports that Social Security faces financial pressure that could come to a head in several years.

The real risk is that if the Social Security Trust Fund reserve, now estimated at about $2.5 trillion, is exhausted, monthly benefits for everyone would be reduced. Current projections from the Social Security Trustees point to a cut of about 22% beginning in the fall of 2032. Even so, that outcome would only occur if Congress did not act in time to reform the program before the reserves are depleted. In our view, that is unlikely unless lawmakers completely fail in their duty to America’s seniors and their dependents.

At the AMAC Foundation, we are working actively to prevent depletion of the Social Security Trust Fund, and we expect Congress will eventually take steps to avoid any reduction in monthly benefits. Allowing those cuts to happen would be politically disastrous for Congress and any president, and it would significantly raise poverty in the United States. As we have said publicly before, we have already put forward a practical plan to restore Social Security’s long-term solvency and are working with Congress and the Social Security Administration to support the necessary changes. More information about AMAC’s plan is available here: https://amac.us/social-security-guarantee

So although your concern is understandable, we believe it is very unlikely that you will see any reduction in your monthly Social Security income. We remain committed to preventing that from happening and will continue pressing Congress to make the changes needed before the Trust Fund is fully depleted.

This article is for informational purposes only and is not legal or financial advice. It reflects the views and interpretations of the AMAC Foundation staff, who are trained and accredited by the National Social Security Association (NSSA). NSSA, the AMAC Foundation, and its staff are not affiliated with or endorsed by the Social Security Administration or any other government agency. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at [email protected]. Because we are a nonprofit organization, our services are free.