The annual Social Security numbers are out, and they’re alarming. According to William Galston in The Wall Street Journal, the fund is now expected to run dry in the first quarter of 2033—nine months sooner than projected last year. When that happens, benefits could drop by 26% for current retirees and future retirees. (1)
I can’t even imagine the hardship this will create for many people.
What’s driving the shortfall?
- The over-65 population has nearly doubled since 2000.
- People are living longer.
- Birth rates are down, meaning fewer workers are paying in.
- Immigrants (people who pay into the system and are not eligible to collect) is trending in the wrong direction.
- The national debt sits at $36 trillion and is rising fast; borrowing more isn’t a realistic option.
Senators Bill Cassidy (R-La) and Tim Kane (D-Va) proposed creating a separate fund for Social Security and investing the fund in stocks and other assets. It’s possible. But markets are unpredictable, and there’s no guarantee that kind of shift would solve the problem on its own. (2)
With the clock ticking, it’s looking more likely that the “solution” will include some blend of tax increases, benefit cuts, and raising the age for eligibility. It’s not ideal, but it’s likely inevitable.
The good news is, you still have time to adjust—and even small changes now can make a meaningful difference later.
Plan with purpose,
Barbara
July 27, 2025
Sources:
1. https://www.wsj.com/opinion/the-social-security-crisis-is-coming
2. https://www.bloomberg.com/opinion/articles/2025-07-11/social-security-can-market-investments-save-it
Barbara J Norman LLC, dba Sage Path Solutions is not affiliated with or endorsed by the Social Security Administration or any other government agency.
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