BALTIMORE, MD — Social Security’s combined trust funds remain on track to exhaust their reserves in 2034, at which point the program would be able to pay only 83% of scheduled benefits absent congressional action, according to the Social Security Board of Trustees’ 2026 annual report.
The projected depletion date for the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds is unchanged from last year’s forecast. The report underscores the continued long-term financing challenges facing the nation’s largest retirement and disability program, which serves roughly 70 million beneficiaries.
The trustees reported that combined trust fund reserves declined by $160 billion during 2025, ending the year at $2.56 trillion.
The retirement-focused OASI trust fund is projected to deplete its reserves earlier, in the fourth quarter of 2032. At that point, incoming revenue would cover about 78% of scheduled benefits. The DI trust fund, which supports disability benefits, is projected to remain solvent throughout the report’s 75-year forecasting period.
According to the report, Social Security’s annual costs are expected to exceed annual income beginning in 2026 and continue doing so for the remainder of the 75-year projection window. Total program costs have exceeded total income since 2021, while costs have surpassed non-interest income since 2010.
If lawmakers do not enact changes before the combined trust funds are depleted, Social Security would continue operating using incoming payroll tax revenue, but beneficiaries would face an automatic reduction in payable benefits.
The trustees also reported a worsening long-term financial outlook. The program’s projected 75-year actuarial deficit increased to 4.42% of taxable payroll, up from 3.82% in last year’s report.
Social Security collected $1.45 trillion in total income during 2025, including $1.32 trillion from payroll taxes, $58 billion from taxation of benefits, and $69 billion in interest earnings.
Total expenditures reached $1.61 trillion, including $1.60 trillion in benefit payments.
An estimated 185 million workers paid Social Security payroll taxes during 2025. Administrative expenses totaled approximately $7 billion, representing 0.4% of overall program expenditures.
The trust funds earned an effective annual interest rate of 2.6% during the year.
Social Security Commissioner Frank J. Bisignano said preserving the program’s long-term finances will require cooperation between policymakers and the agency.
“To protect the promise of Social Security, it is important for lawmakers and the Social Security Administration to work together to ensure the trust funds continue to provide financial stability now and for future generations,” Bisignano said.
The Board of Trustees includes Treasury Secretary Scott Bessent, who serves as managing trustee; Social Security Commissioner Frank J. Bisignano; Health and Human Services Secretary Robert F. Kennedy Jr.; and Acting Labor Secretary Keith E. Sonderling. The board’s two public trustee positions remain vacant.
The full 2026 Trustees Report is available at www.socialsecurity.gov/OACT/TR/2026/.
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