Social Security retirement trust fund projected to run out of cash in 2032

The 2024 annual report from the Social Security and Medicare trustees indicates that the retirement trust fund for Social Security is expected to experience a funding shortfall in 2032, moving up one year from the prior projection. Medicare’s hospital insurance trust fund is still projected to be unable to pay full benefits beginning in 2033, unchanged from last year’s estimate.

The trustees attribute the earlier depletion date to a combination of rising health-care costs, slower population growth, lower immigration levels and reduced revenue streams. After the trust fund is exhausted, benefits would continue to be paid but at about 83% of scheduled amounts.

"President Donald Trump’s administration is committed to protecting and strengthening Social Security and eliminating waste, fraud, abuse and ensuring program integrity," said Social Security Commissioner Frank Bisignano.

Advocacy groups and senior-citizen organizations warned that the findings underscore the need for legislative action. > "The latest numbers should be a wake-up call. Congress needs to act," said AARP CEO Myechia Minter-Jordan.

The report notes that Social Security’s combined trust funds, which cover old-age and disability benefits, will be unable to pay full benefits starting in 2034, a timeline unchanged from the 2025 report. Medicare currently serves about 70.1 million beneficiaries, including seniors and people with disabilities.

Both programs have faced long-standing financial pressures, and policymakers have historically delayed reforms despite the projected shortfalls.