Summary: Actuarial Status of the Social Security Trust Funds
The annual report of the Social Security Board of Trustees presents the actuarial status of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds. Although the acute phase of the COVID-19 pandemic appears to be over, the Trustees expect there will be residual effects on the population and the economy for years to come. Since the assumptions for last year's report were set, the Trustees have reassessed their expectations for the economy in view of recent developments, including updated data on inflation and output. Accordingly, they have revised downward future levels of gross domestic product (GDP) and labor productivity by about 3percent over the long-range projection period (2023–2097). Assumptions for growth are largely unchanged after the first 10years of the projection period. The intermediate (best estimate) assumptions for this report were set in December2022. The Trustees will continue to monitor developments and modify projections in future reports.
The projected actuarial deficit for the combined trust funds over the next 75years is 3.61percent of taxable payroll, up from 3.42percent reported last year. The main reasons for the larger deficit are the change in the valuation date and the extension of the projection period to include2097, and changes in the assumptions about the levels of productivity and GDP in the early years of the long-range projection period. As a share of the economy as measured by GDP, the projected actuarial deficit over the next 75years is 1.3percent.
The projected reserve depletion date for the combined OASDI trust funds is2034, a year earlier than in last year's report.1 Considered on its own, the OASI Trust Fund can pay full benefits until2033, a year earlier than projected last year. As in last year's report, the DI Trust Fund is projected to be able to pay full benefits through the end of the 75-year projection period (2097in this year's report).
Comparison: Key Measures of Actuarial Status in the Social Security Trustees Reports | 2022 report | 2023 report |
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| 75-year actuarial deficit | |
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| As a percentage of taxable payroll | 3.42% | 3.61% |
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| As a percentage of GDP | 1.2% | 1.3% |
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| Income and outgo in year prior to report year (inbillions) | |
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| Income | |
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| Total | $1,088 | $1,222 |
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| Social Security contributionsa | $981 | $1,107 |
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| Income taxes on benefits | $38 | $49 |
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| Interest | $70 | $66 |
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| Outgo | |
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| Total | $1,145 | $1,244 |
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| Benefit paymentsb | $1,138 | $1,237 |
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| Administration | $6 | $7 |
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| Net change in assets | −$56 | −$22 |
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| Trust fund reserves | |
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| Amount at beginning of report year (inbillions) | $2,852 | $2,830 |
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| Amount at beginning of report year (as a percentage of report year outgo) | 230% | 204% |
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| Projected year of peak trust fund reservesc | 2022 | 2023 |
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| Amount at end of peak year (inbillions) | $2,805 | $2,777 |
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| Year of trust fund depletion | |
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| OASDI | 2035 | 2034 |
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| OASI | 2034 | 2033 |
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| DI | d | d |
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| Share of OASDI outgo covered by scheduled revenue in— | |
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| Year of trust fund depletion | 80% | 80% |
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| End of 75-year reporting period | 74% | 74% |
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| SOURCES: 2022 and 2023 Trustees Reports. |
| a. Includes adjustments for prior calendar years. |
| b. Includes a small amount of payments to the Railroad Retirement Board. |
| c. Measured at end of year. |
| d. The trust fund is not projected to become depleted during the 75-year period specified in the report. |
A 2022 annual deficit of $22.1billion decreased the asset reserves of the combined OASDI trust funds to $2,830billion at the end of the year. This amount is equal to 204percent of the estimated annual expenditures for2023. The 2022Trustees Report had projected a $46.8billion decrease in combined trust fund reserves during2022 under the intermediate assumptions. The main reason for the smaller-than-expected annual deficit was higher payroll tax contributions associated with the continued strong economic recovery from the pandemic and brief recession of2020.
The Trustees project that OASDI annual cost will exceed total income throughout the 75-year projection period. After the projected trust fund reserve depletion in2034, continuing income would be sufficient to pay 80percent of program cost, declining to 74percent for2097.
Beneficiaries and Benefit Payments
At the end of2022, the Social Security program was providing monthly benefits to about 66million people: 57million from the OASI Trust Fund and 9million from the DI Trust Fund. Total benefit payments for the year (excluding payments to the Railroad Retirement Board) were $1,232billion: $1,088billion from the OASI Trust Fund and $144billion from the DITrustFund.
Sources of Trust Fund Income
During 2022, an estimated 181million workers had earnings covered by Social Security and paid $1,107billion in payroll taxes. Employees pay a 6.2percent contribution from earnings up to a maximum of $160,200 in2023, which their employers match. Self-employed workers pay both shares of the contribution, or 12.4percent. Generally, more than 40percent of current beneficiaries pay income taxes on part of their benefits, and those taxes go to the OASDI trust funds and Medicare's Hospital Insurance Trust Fund. In2022, income to the combined OASDI trust funds from the taxation of benefits amounted to $49billion. The trust funds also earned $66billion in interest payments on their accumulated reserves.
1 The OASI and DI Trust Funds are distinct legal entities that operate independently. The two trust funds are often considered on a hypothetical combined basis—designated OASDI—to illustrate the actuarial status of the Social Security program as a whole.
FAQs
Payroll Taxes. Are the Social Security trust funds real? Social Security trust funds are real and hold real Treasury securities for which the federal government has an obligation to pay. They reflect any accumulated excess of Social Security taxes plus other revenues, such as interest received, over expenditures.
Will Social Security Trust Fund be depleted? ›
The 2023 Social Security Trustees Report projects that the Old Age and Survivor's Insurance (OASI) Trust Fund can pay 100% of scheduled retirement and survivor benefits until the year 2033. In that year, the fund is projected to be depleted.
Did the federal government borrow money from the Social Security Trust Fund? ›
The government has borrowed the total value of the Trust Fund to pay for other government spending.
What is the future of the Social Security Trust Fund? ›
The trustees project that the reserves of the combined Social Security trust funds will be depleted in 2035 and Medicare's Hospital Insurance (HI) trust fund in 2036. For HI, that's five years later than in last year's report.
How much is my social security number worth? ›
Passport information sells for $62.61 on the dark web according to the Dark Web Index, while other proof-of-identity documents are running just under $30. A separate Experian estimate from 2017 has driver's licenses selling for $20 while, surprisingly, Social Security numbers can sell for as little as $1.
What is the problem of the Social Security trust fund? ›
Exhaustion of trust fund assets is projected to occur under the intermediate assumptions because program cost will begin to exceed the tax revenues dedicated to the trust funds in the future, requiring increasing amounts of net redemptions from the trust funds.
Which president borrowed the most from Social Security? ›
Bush 'borrowed' $1.37 trillion of Social Security surplus revenue to pay for his tax cuts for the rich and his war in Iraq and never paid it back”.
Where did all the Social Security money go? ›
We use your taxes to pay people who are getting benefits right now. Any unused money goes to the Social Security trust funds, not a personal account with your name on it. Many people think of Social Security as just a retirement program.
What will happen after the SSA trust fund runs out? ›
According to the 2023 Social Security Trustees Report, benefits could be reduced by as much as 23% in total. However, there's no mechanism for describing how benefits would be reduced for specific retirees and beneficiaries if the Trust Funds run out.
Has Congress ever taken money from the Social Security Fund? ›
Q1. Which political party took Social Security from the independent trust fund and put it into the general fund so that Congress could spend it? A1: There has never been any change in the way the Social Security program is financed or the way that Social Security payroll taxes are used by the federal government.
December 29, 1981 President Reagan signed legislation which, among other changes: restored the minimum Social Security benefit; provided the trustees of the various trust funds with the authority to borrow from each other through December 1982; made changes in sick pay reporting; and increased the penalties for misuse ...
What happens if Social Security runs out before I retire? ›
Reduced Benefits
If no changes are made before the fund runs out, the most likely result will be a reduction in the benefits that are paid out. If the only funds available to Social Security in 2033 are the current wage taxes being paid in, the administration would still be able to pay around 75% of promised benefits.
How much money is left in the Social Security trust fund? ›
A 2023 annual deficit of $41.4 billion decreased the asset reserves of the combined OASDI trust funds to $2,788 billion at the end of the year.
Who controls the Social Security trust fund? ›
The Social Security trust funds, managed by the Department of the Treasury, are the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds. Since the beginning of the Social Security program, all securities held by the trust funds have been issued by the Federal Government.
At what age is Social Security no longer taxed? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Can you use your social security trust fund balance? ›
Social Security taxes and other income are deposited in these accounts, and Social Security benefits are paid from them. The only purposes for which these trust funds can be used are to pay benefits and program administrative costs.
Is my social security number a bank account? ›
No. Your Social Security number is not a bank account. It is a unique number assigned to you by the United States government that distinguishes you from every other person in its system.
How do I get money from my social security number? ›
You can do so by signing up for direct deposit, which sends payments directly into your bank account. Or, you can have your benefits automatically deposited into your Direct Express® Debit MasterCard® account. Direct deposit is a simple, safe, and secure way to get benefits. What is the Direct Express® card?
Can I borrow money from my Social Security benefits? ›
Social Security will not give you a loan or let you borrow against your future benefits. You can't, for example, ask to borrow $5,000 and then simply have Social Security deduct that sum from your benefits once you start collecting them.
