By John I. Adams, Chairman, TSCL
Each year, the Social Security Administration (SSA) issues a report on the program’s financial health, known as the Trustees’ Report. The SSA released this year’s report on June 9th, and the news doesn’t look good.
Social Security’s doomsday is closer than ever
According to the SSA, the Old Age and Survivors Insurance trust fund, the fund from which it pays all non-disability benefits, is projected to become depleted in the fourth quarter of 2032. The program currently doesn’t generate enough tax revenue to cover full benefits, so it covers the shortfall from the trust fund. When the trust fund runs out, the SSA will be forced to only rely on incoming tax revenue and automatically cut benefits by 22 percent.
Today’s average Social Security beneficiary collects a monthly check of $1,937.53. (This amount is higher for retired workers.) If Congress fails to act to raise Social Security’s revenue and the cuts take effect, the average beneficiary’s check would decrease by $426.67. An income loss of that size would represent a tangible difference in the standard of living for millions of American seniors.
The SSA’s hands are tied
On its own, Social Security has no power to avert this crisis. Real change must come from Congress. “To protect the promise of Social Security, it is important for lawmakers and the Social Security Administration to work together to ensure the trust funds continue to provide financial stability for now and for future generations,” said SSA Commissioner Frank Bisignano in a press release accompanying the 2026 Trustees Report.
The key truth is that only legislation can fix the program. Congress must either increase revenue through raising the Social Security payroll tax or eliminating loopholes that allow higher-earning Americans to pay a lower share of their income into the program.
A new bill could save the program
Just weeks after the release of the Trustees’ Report, a bipartisan group of Senators introduced the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act. The legislation calls for the formation of an independent, bipartisan committee that would make recommendations to Congress and culminate in an up-or-down vote on policies to extend Social Security’s solvency for at least 50 more years.
Other bills that would extend Social Security’s solvency, such as the Social Security Expansion Act and the Social Security 2100 Act have previously failed to pass. The PROMISE Act would force Congress to take these proposals seriously, a priority for all American seniors.
