Key facts
- Social Security's funding gap has widened to 4.42% of taxable payroll.
- The OASI Trust Fund is projected to be depleted in Q4 2032.
- Following depletion, 78% of scheduled benefits can be paid from ongoing income.
- The DI Trust Fund is expected to remain solvent through at least 2100.
The Social Security trust fund faces a widening funding gap, now projected at 4.42% of taxable payroll, an increase from 3.82%. This deterioration is attributed to lower birth rates and immigration.
The Old-Age and Survivors Insurance (OASI) Trust Fund is expected to be able to pay 100% of scheduled benefits until the fourth quarter of 2032. After this point, the fund's reserves will be depleted, and continuing program income will only be sufficient to cover 78% of total scheduled benefits.
In contrast, the Disability Insurance (DI) Trust Fund is projected to maintain its ability to pay 100% of scheduled benefits through at least 2100, the end of the report's projection period.
Treasury Secretary Scott Bessent highlighted the importance of lawmakers taking action to ensure the long-term viability of these programs, emphasizing the administration's efforts to eliminate waste, fraud, and abuse. Social Security Commissioner Frank J. Bisignano stated that ensuring the trust funds remain strong is inseparable from the mission to serve Americans. CMS Administrator Dr. Mehmet Oz noted the strength of the Medicare program but underscored the need to address fraud, waste, and abuse within its Hospital Insurance Trust Fund.