The Social Security Trust Fund is projected to be depleted in 2033. However, this does not mean Social Security will be bankrupt or default.
Why?
Because of the other funding method for Social Security, payroll taxes.
Upon insolvency, all beneficiaries regardless of age, income, or need will see their benefits cut by 25 percent across-the-board. The analysis below updates our previous analysis of CBO's last set of long-term Social Security projections, which were released in December 2022.
Can a younger “replacement” labor force population make up the difference?
The Social Security Trust Fund is projected to be depleted in 2033. However, this does not mean Social Security will be bankrupt or default.
Why?
Because of the other funding method for Social Security, payroll taxes.
Upon insolvency, all beneficiaries regardless of age, income, or need will see their benefits cut by 25 percent across-the-board. The analysis below updates our previous analysis of CBO's last set of long-term Social Security projections, which were released in December 2022.
Can a younger “replacement” labor force population make up the difference?