Will Social Security Be Able to Keep Paying Benefits?

Dear Rusty: What would happen to older Americans if the nation ever ran out of money to keep paying monthly Social Security benefits? I am 78 years old, and Social Security is my only source of income. Signed: Worried Senior

Dear Worried Senior: Please try not to worry—the government will not run out of money to pay Social Security benefits. As long as workers are earning wages and paying into the system, Social Security will continue to have money coming in to cover benefits. The concern you have been hearing about comes from recent reports that the program faces financial pressure that could come to a head within the next several years.

The main risk for you, and for everyone else, is this: if the reserves in the Social Security Trust Fund, now roughly $2.5 trillion, are exhausted, monthly benefits would have to be reduced for all recipients. Current projections from the Social Security Trustees point to a benefit cut of about 22% beginning in the fall of 2032. That would only happen, however, if Congress does not act to strengthen the program before the reserves run out. In our view, that is unlikely, unless Congress completely fails in its responsibility to American seniors and their dependents. It is not a pleasant possibility, but it is also not a likely one.

At the AMAC Foundation, we are working hard to avoid depletion of the Social Security Trust Fund, and we expect Congress will eventually step in to prevent any reduction in monthly benefits. Allowing those cuts would be politically disastrous for Congress and any president, and it would significantly worsen poverty in the United States. As we have said publicly before, we have already put forward a practical plan to restore Social Security to long-term solvency, and we are working with Congress and the Social Security Administration to advance the needed reforms. More details about AMAC’s plan are available here: social security guarantee.

So while your concern is completely understandable, we believe you are very unlikely to see any reduction in your monthly Social Security income. We remain committed to preventing that outcome and will continue urging Congress to make the changes needed before the Trust Fund is fully depleted.