Social Security Will Be Insolvent by 2033

Social Security will be insolvent even sooner than previously expected, with automatic benefit cuts now projected to occur in 2033, according to a new report released Friday by the program's trustees.

The new projections underscore the limited time that's available for policy makers to deal with the fiscal problems that are quickly rotting away America's old-age entitlement program. The more quickly approaching insolvency date also draws a stark contrast with leaders of both major political parties—including President Joe Biden, former President Donald Trump, and House Speaker Kevin McCarthy (R–Calif.)—who have all, at times, promised not to touch Social Security during the ongoing negotiations over raising the nation's debt ceiling.

Ignoring the ticking clock won't make it run slower. In fact, Friday's report shows that Social Security's finances have gotten worse over the past year. The Trustees say that a combination of inflation and a worsening economic outlook for the coming years contributed to their more pessimistic projections.