Social Security Could Slash Benefits by 2034 Without Congressional Action, Report Warns

A new report from the Social Security and Medicare Trustees has revealed that the Social Security program will be unable to pay full monthly benefits to Americans starting in 2034 unless Congress intervenes.

According to the trustees, the combined reserves of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds will be fully depleted in less than a decade.

If that happens, incoming payroll taxes would only be enough to fund 81% of scheduled benefits, resulting in a 19% cut for tens of millions of retirees and beneficiaries.

The financial strain is being driven by multiple factors, including an aging population, lower birth rates, slower economic growth, and recent legislative changes like the Social Security Fairness Act.

The Medicare Hospital Insurance trust fund is also expected to be exhausted by 2033, one year before Social Security, leaving only enough funds to pay 89% of hospital insurance benefits.

Experts warn that the longer Congress delays action, the more drastic the eventual solutions will need to be.

Policy options on the table include raising payroll taxes, increasing the retirement age, trimming benefits, or a combination of reforms.

Lawmakers are now under renewed pressure to reach a bipartisan agreement to shore up the nation’s most critical safety nets before millions face automatic reductions.

“Time is running out,” the trustees cautioned, urging swift legislative action to avoid a potential funding crisis for future retirees.