Will Social Security Run Out? Our Analysis for 2025 and Beyond

News outlets tend to publish sensational headlines warning that Social Security will be depleted in the near future. But will Social Security run out in our lifetime? No, it won’t, according to the most recent data. It is possible, however, that retirees will not get 100% of their Social Security benefits after the year 2033. Instead, they might get a reduced amount.

Here’s what you need to know about the Social Security program, including when it was created, why it’s important, what you can expect for future payouts, and how to develop a plan to supplement your Social Security checks in the future.

Table of Contents

1. What is Social Security?
2. Why is Social Security important?
3. What age can people collect Social Security?
4. Where does Social Security money come from?
5. Will Social Security ever run out of money?
   1. What year will Social Security run out?
   2. Will Social Security run out before I retire?
6. What happens if Social Security runs out?
7. How to supplement Social Security income
8. FAQ

What is Social Security?

Social Security is a government program that provides steady retirement income to qualified Americans. Franklin D. Roosevelt started this program in 1935 by signing the Social Security Act, with the purpose of reducing poverty levels among older Americans.

Today, the Social Security program also provides monthly payments for those who are disabled and survivor benefits for eligible spouses, divorced spouses, children, and dependent parents of someone who has passed away.

American workers pay into the Social Security program throughout their working lives via Federal Insurance Contributions Act (FICA) taxes. Employers deduct FICA taxes from every paycheck, which go toward Social Security and Medicare benefits. Currently, workers and employers each have a 6.2% withholding tax rate for Social Security.

Why is Social Security important?

Social Security is important for a number of different reasons, and the Social Security program provides far more than retirement savings for Americans. The Center on Budget and Policy Priorities explains that Social Security also offers life insurance and disability insurance too.

Most importantly, Social Security provides much-needed financial assistance to those who are disabled and keeps 1.4 million children in America above the poverty line. Although Social Security provides these benefits, it does not give Americans enough income for their retirement years. 

Social Security income is meant to supplement your retirement savings. To ensure you have enough to live on in retirement, it’s important to invest money in a 401(k) and an IRA, too.

What age can people collect Social Security?

To qualify for Social Security payments, you must meet specific criteria, including reaching a certain age. Occasionally, the law changes and increases the age at which people can take Social Security. The next time this will happen is when the age is raised to 67 in 2027.

Here is the current age requirement to withdraw Social Security by birth year:

• If you’re born between 1943 and 1954, your retirement age is 66
• If you’re born between 1955 and 1959, your retirement age is 66 to 67.
• If you’re born after 1960, your retirement age will be 67.

You can start getting Social Security checks as young as age 62, but your benefits will be less. Full retirement age, that is, the age in which you’ll receive full Social Security benefits is 66+ for most people.

Reason to delay benefits

If you have other sources of retirement income, you can delay taking your Social Security benefits. The longer you wait, the more money you can get. To determine how much more you could get by delaying your Social Security, check out the Social Security benefits calculator.

Once you reach age 70, you maximize your Social Security benefits, and there is no reason to delay any longer.

Where does Social Security money come from?

The money that funds Social Security checks comes from FICA taxes and two main Social Security Trust Funds—the federal Old-Age and Survivors Insurance Trust (OASI) and the federal Disability Insurance (DI) Trust. Together, they are referred to as OASDI.

• The 2024 OASDI Trustees Report shows that the government can pay 100% of benefits until 2033. After that, it can pay 79% of the benefits.  
• The Summary of 2024 Annual Reports show that the DI Trust can pay 100% of benefits through 2098.

Other trusts include:

• The Hospital Insurance (HI) Trust Fund, which can pay 100% of benefits through 2035 and 89% after.
• The Supplemental Medical Insurance (SMI) Trust Fund is “adequately financed into the indefinite future.”

The 2025 AARP Survey on Social Security and Medicare showed that nearly 90% of adults over age 50 want Congress to find a solution for the projected Social Security deficit. The survey also revealed that 94% of adults surveyed want politicians from both major parties to work together to find a solution in the near future.

Will Social Security ever run out of money?

Although headlines tend to talk about Social Security running out of money, data from the 2024 Social Security and Medicare Boards of Trustees Report forecasts something slightly different. Because several trusts partially fund Social Security benefits, the trustees can estimate how long the funds will last.

Social Security money likely will not run out completely. However, it estimated that there will be enough money to pay for Social Security benefits through 2033. After that, funds can pay for only 79% of benefits.

To change this outlook, Congress will need to develop a plan to prevent this drop in benefits.

What year will Social Security run out?

Retirees might not get 100% of the Social Security benefits that they expect after 2033. Keep in mind, this is a projection, and lawmakers can make changes before this date to adjust expectations and funding sources.

Will Social Security run out before I retire?

Here is how Social Security and its potential funding problems could affect different generations:

Generation	Impact
Baby boomers	Full benefits
Gen X	Reduced benefits
Millennials	Reduced benefits
Gen Z	Uncertain
Alpha	Uncertain

• Will Social Security run out for Baby Boomers?

Many baby boomers already receive Social Security benefits. Out of all generations, this generation should receive the full amount of their benefits.

• Will Social Security run out for Millennials and Gen X? 

Those who are Gen X are approaching retirement age next, and Millennials have slightly longer to prepare for retirement. Reduced Social Security benefits could negatively impact both Gen X and Millennials, so it’s wise for them to take the time to bolster their retirement savings.

• Will Social Security run out for Gen Z or Gen Alpha?

The good news is that Gen Z and Gen Alpha have the most time to prepare for retirement. However, because of this longer time horizon, there is more uncertainty about the Social Security program. Lots of things can change in terms of the Social Security program by the time these generations retire, so save and invest wisely.

What happens if Social Security runs out?

Although it’s unlikely that Social Security will run out completely, even reduced Social Security payments would have adverse effects on the population. The Urban Institute estimates that if funds run out, the number of Social Security beneficiaries who live in poverty would increase 50% or more. 

Additionally, beneficiaries of other Social Security benefits, such as children of deceased parents, might not be able to receive much-needed payments. Again, it’s unlikely that Social Security will run out completely, but it’s important that policymakers understand potential consequences if it does.

How to supplement Social Security income

Because Social Security only provides a portion of the money you will need to live on in retirement, it’s a good idea to plan to supplement your Social Security payments. Here are some ways to create additional streams of income in retirement.

Work with a financial advisor

Working with a financial advisor can help you find out whether or not you’re prepared to afford retirement. An advisor can help you create a financial plan based on your risk tolerance, age, current savings, and future financial goals, and advise on the best ways to withdraw additional retirement income in the most tax-efficient manner.

If you’re not sure where to start in finding a financial advisor, try starting with WiserAdvisor, a service that helps you find and compare financial advisors that meet your needs.

Social Security income is an important part of retirement income for most people. We include clients projected income found by getting your Social Security statement by creating an account on ssa.gov. 

For those who are concerned about the viability of the system, we use a less-than-projected number. Sometimes, clients even ask us to model their retirement with no Social Security income. We can do that. It’s all about planning with enough time to save and invest in your own retirement assets from which you can draw. 

Work part-time

While some people don’t want to work in retirement, others find joy in socializing at work and earning a paycheck. According to research from T. Rowe Price’s 2022 Retirement Saving & Spending Study, 20% of people who retired from work began working again. Of those who returned to work, 48% said they did so because they needed the income.

Diversify your investments

Diversifying your investments means that you have several different income sources for retirement. That might include investing in a work-sponsored 401(k), a Roth IRA, real estate, and conservative investments, like buying bonds (try Worthy Bonds to get started).

Downsize or pay off your mortgage

If you have a reduced income in retirement, it’s helpful to downsize or pay off your mortgage completely. Having the stress of a mortgage payment when you’re relying on your retirement savings to live can be challenging. So, as you approach retirement, consider your living situation and find ways to reduce this line item in your budget.

Live below your means

When preparing for retirement, it’s helpful to learn how to live on a budget and live below your means. When you spend less than you make, you can use the difference to invest in your future. It’s never too late to invest, but the younger you start, the better.

FAQ

Does Social Security last until you die?

Yes. Social Security retirement benefits are designed to last for the duration of your life. Once you start receiving payments—whether you claim early, at full retirement age, or later—you’ll continue to receive them monthly for as long as you live.

Do children inherit Social Security?

Yes, if eligible. Children may receive Social Security benefits if a parent dies, becomes disabled, or retires and was eligible for Social Security. These are called survivor or dependent benefits and are available to children who are unmarried and generally under age 18 (or up to 19 if still in high school full-time).

Who never receives Social Security benefits?

Called “never-beneficiaries.” Some people never receive Social Security benefits despite paying into the system. This can include individuals who die before reaching retirement age without qualifying family members, certain public-sector workers who didn’t pay into Social Security, and immigrants who don’t meet work credit requirements.

Will Social Security still be available in 2050?

Presumably, yes, but there could be a reduction in benefits. Social Security is not expected to disappear, but projections show the trust fund could be depleted by the mid-2030s. If Congress takes no action, benefits may be reduced by around 20% to 25% by 2050. Lawmakers are considering various reforms to ensure the program remains solvent.