Social Security Combined Trust Fund Reserves Depletion Year Remains 2034

The Social Security Board of Trustees released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, the same as projected last year, with 79% of benefits payable at that time.

The OASI Trust Fund is projected to become depleted in late 2034, as compared to last year’s estimate of early 2035, with 77% of benefits payable at that time. The DI Trust Fund will become depleted in 2032, extended from last year’s estimate of 2028, with 96% of benefits still payable.

In the 2018 Annual Report to Congress, the Trustees announced:

  • The asset reserves of the combined OASDI Trust Funds increased by $44 billion in 2017 to a total of $2.89 trillion.
  • The total annual cost of the program is projected to exceed total annual income in 2018 for the first time since 1982, and remain higher throughout the 75-year projection period. As a result, asset reserves are expected to decline during 2018. Social Security’s cost has exceeded its non-interest income since 2010.
  • The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – the same as projected last year. At that time, there will be sufficient income coming in to pay 79% of scheduled benefits.

Other highlights of the Trustees Report include:

  • Total income, including interest, to the combined OASDI Trust Funds amounted to $997 billion in 2017 ($874 billion from net payroll tax contributions, $38 billion from taxation of benefits, and $85 billion in interest).
  • Total expenditures from the combined OASDI Trust Funds amounted to more than $952 billion in 2017.
  • Social Security paid benefits of more than $941 billion in calendar year 2017. There were about 62 million beneficiaries at the end of the calendar year.
  • The projected actuarial deficit over the 75-year long-range period is 2.84% of taxable payroll – slightly larger than the 2.83% projected in last year’s report.
  • During 2017, an estimated 174 million people had earnings covered by Social Security and paid payroll taxes.
  • The cost of $6.5 billion to administer the Social Security program in 2017 was a very low 0.7% of total expenditures.
  • The combined Trust Fund asset reserves earned interest at an effective annual rate of 3% in 2017.

View the 2018 Trustees Report at www.socialsecurity.gov/OACT/TR/2018/.