Social Security trust fund to run out of reserves by late 2032

The Social Security Trustees Report projects that the retirement trust fund will be exhausted in the fourth quarter of 2032, after which payroll taxes will only cover about 78% of scheduled benefits, implying a 22% reduction for beneficiaries. The shortfall would affect more than 71 million retirees, cutting the income of roughly 43% of seniors. The present‑value gap between promised and affordable benefits has risen to $29.3 trillion, up from $25.1 trillion a year earlier. A typical dual‑income couple retiring in 2033 could see annual benefits drop by about $16,900.