Social Security faces imminent cuts as trust fund depletion looms in 2033

In the United States, the Social Security program is anticipated to deplete its trust funds by 2033, a year earlier than prior estimates from 2034. This financial shortfall is primarily attributed to rising costs influenced by the Social Security Fairness Act, which has increased benefits for millions of retirees. According to a recent report from the Social Security Board of Trustees, if Congress does not take action, beneficiaries could see a cut in their monthly payments by approximately 20% starting in 2033. The program currently serves about 70 million individuals, underscoring the potential impact of these cuts. In addition to the projected trust fund depletion, Social Security faces significant challenges due to increasing numbers of beneficiaries and a surge in applications for benefits. The first half of 2025 saw a 17% increase in benefit claims compared to the previous year, with experts suggesting that worries about the program's stability played a role in this trend. By 2025, the program is estimated to enroll approximately 4 million new beneficiaries, further straining financial resources. AARP CEO Myechia Minter-Jordan emphasized the urgent need for Congress to reinforce the structure of Social Security, stating that any failure to increase revenue would inevitably support automatic benefit cuts. Part of the discussion surrounding Social Security also includes proposals from Republican lawmakers to raise the retirement age to 70. However, this approach, which they suggest as a way to improve the program’s financial situation, could be viewed as a reduction in benefits for many retirees. Advocacy groups contend that raising the income cap, which currently stands at $176,100 and exempts earnings beyond that amount from payroll taxes, would be a more effective means to secure and enhance program funding. Such changes may align more closely with public opinion, which tends to favor making higher earners contribute more to Social Security. Overall, the future of Social Security stands at a critical junction, with voices across the political spectrum calling for immediate legislative action. The potential cuts not only threaten the financial security of millions of Americans who rely on these benefits but also bring to light broader questions about the sustainability of such essential programs. U.S. Secretary of Treasury Scott Bessent has pointed to the need for lawmakers to work collaboratively to ensure the longevity of these vital support services, especially as both Social Security and Medicare face similar financial difficulties and impending funding shortages in 2033.