Social Security Depletion Date Moved to 2034 Amid Policy Shifts

The projected date when the U.S. Social Security program will run out of money—known as the “go-broke date”—has been pushed forward to 2034, one year earlier than the 2035 estimate from last year, according to an annual report released in June [1]. After this point, the program will have enough funds to cover only 81% of scheduled benefits. The earlier depletion date reflects the impact of new legislation, including the Social Security Fairness Act, which was signed into law in January by President Joe Biden. The act repealed provisions that reduced benefits for some public workers, leading to increased payouts for certain recipients [1].

Conversely, a new tax law signed by Donald Trump in July is expected to accelerate the program’s insolvency, according to Brendan Duke of the Center on Budget and Policy Priorities [1]. The law includes a temporary tax deduction for individuals aged 65 and older, but many low-income beneficiaries are ineligible to claim it.

The growing financial uncertainty surrounding Social Security has sparked renewed debates over reform. While President Trump claimed at a recent event that his administration is strengthening the program, no long-term solutions have been proposed by the president or the Republican-led Congress [1]. The program faces a structural imbalance: it is funded largely by payroll taxes, but the aging U.S. population and economic challenges have eroded its financial stability.

The administration has also taken steps that raise concerns. The Department of Government Efficiency has reduced the Social Security Administration’s workforce by over 7,000 employees this year, raising questions about its ability to manage operations effectively [1]. Meanwhile, Treasury Secretary Scott Bessent suggested that new investment accounts dubbed “Trump accounts” might serve as a path to privatization, although the Treasury later distanced itself from those remarks [1].

Privatization remains a divisive topic. The idea of allowing individuals to invest their Social Security contributions in personal accounts was rejected by the public when proposed by President George W. Bush in 2005. Some economists, like Columbia University’s Glenn Hubbard, argue that reducing benefit levels for high-income retirees or capping benefit growth could stabilize the program without massive tax increases [1]. However, these proposals are politically contentious.

Advocacy groups emphasize the importance of maintaining Social Security as a social safety net. AARP CEO Myechia Minter-Jordan noted that the number of beneficiaries is expected to rise to 82 million by the time the program turns 100 [1]. Public confidence is also waning. A recent poll found that many older Americans, especially Democrats, support the program but worry that benefits will not be available to them in retirement [1].

Some critics, like Rachel Greszler of the Heritage Foundation, argue that the program has outgrown its original purpose and should be scaled back. She supports raising the retirement age and implementing a uniform benefit structure regardless of income, which she claims would boost support for low earners but could reduce benefits for middle-class retirees [1].

As the go-broke date looms, the debate over how to preserve Social Security continues without clear political consensus. With no major reforms on the horizon, the future of the program remains uncertain.

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Source:

[1] When Will Social Security Go Broke? 2034 (https://fortune.com/2025/08/14/when-will-social-security-go-broke-2034/)