Will Social Security Run Out of Money Soon?

Dear Concerned Senior:  Thanks for sharing your concerns. This topic is a fairly complicated one, but I’ll do my best to explain it.

Social Security income (from payroll taxes, interest on reserves, and income tax on SS benefits) has been insufficient to pay 100% of SS benefit obligations since about 2020.  Since that time, SS has been drawing money from the Social Security Trust Fund reserves to pay full monthly benefits to everyone.  In 2020, there was nearly $3 trillion in SS reserves held in the SS Trust Funds, but as of the end of 2025, those reserves have dwindled to about $2.56 trillion because they are being used to pay full SS benefits to all.  Without program reform, the SS trust funds will be fully depleted in 2032, which would result in an across-the-board cut of about 22% to everyone’s monthly SS payment. And that would be devasting to millions of Americans!

However, Congress is acutely aware of this issue; they have been for years but have largely ignored previous warnings. Now, however, those predicted benefit cuts are dangerously close to becoming a reality. As a result, we are beginning to see serious (even bipartisan) discussions in Congress about reforming Social Security to restore it to solvency to avoid future benefit cuts.

For our part, AMAC and the AMAC Foundation have been working on a proposal to restore SS to full solvency for generations, and we have offered our proposal to various Congressional Representatives and to the SSA Commissioner and his executive staff. Our proposal has been well received, and we are very optimistic that Congress will finally take real action to restore SS to solvency to avoid any benefit cuts.  Frankly, doing otherwise would amount to political suicide!

At AMAC, we are closely monitoring this situation and are very proactive in Washington, D.C. to ensure that benefits are not cut in 2032, and we will continue our vigorous efforts and our vigilance to avoid Social Security insolvency. We are confident that Congress will act in time to avoid any reduction in SS benefits, and you can stay informed of our efforts by watching our AMAC Social Security information website – www.socialsecurityreport.org.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, all services are free.