August 14, 1935, is a significant date in the history of this country, as it marks the day the Social Security Act was officially enacted to provide senior citizens with a stable income during their later years. Much like it is funded today, the Social Security program was set up as an insurance program and financed through a dedicated payroll tax. Employers and employees contribute to the payroll tax each month throughout a worker’s career, and upon retirement, the retiree receives those contributions back in the form of a monthly benefit.
August 14, 2025, marks the ninetieth anniversary of this program, which now provides benefits to tens of millions of Americans. While it remains a cornerstone of support for many, it is also facing serious funding issues, as a major trust fund is projected to become insolvent before the program reaches its centennial. Here’s what you need to know.
Social Security funding crisis
According to estimates from AARP, the number of Social Security beneficiaries is expected to reach about 82 million by the program’s 100th year. Unfortunately, whether those beneficiaries will be able to receive their full benefits remains uncertain, as lawmakers scramble for solutions to prevent a projected shortfall.
The latest annual report from the Social Security Board of Trustees confirmed that the program’s long-standing financial problems are worsening. The report projects that the Old Age and Survivors Insurance (OASI) trust fund will be depleted by 2033. If that happens, incoming revenue will only cover 77% of scheduled benefits, meaning beneficiaries would face significant cuts.
While the Disability Insurance (DI) trust fund is expected to remain solvent until 2099, the trustees also raised the possibility of combining both trust funds into a single OASDI trust fund. In that scenario, full benefits could be paid only until 2034—one year earlier than projected in last year’s report. After that, just 81% of scheduled benefits would be payable, leaving beneficiaries facing cuts unless changes are made.
The report attributes the projected shortfall to three main factors. First, the Social Security Fairness Act restored full benefits to about 3 million public sector employees. Those individuals also received a one-time lump-sum retroactive payment, further straining the program’s finances. Second, “the Trustees extended the assumed period of recovery from historically low fertility levels by 10 years.” And third, “the Trustees lowered the assumed long-term share of Gross Domestic Product (GDP) that accrues to workers in the form of labor compensation.”
What the SSA commissioner is saying
In May, the Social Security Administration welcomed Frank J. Bisignano as Commissioner. His push to modernize the agency through the use of AI tools has drawn criticism from lawmakers, including Senator Elizabeth Warren, raising new concerns about the program’s direction.
Commissioner Bisignano recently wrote an op-ed for Fox News in honor of Social Security’s 90th anniversary. In it, he highlighted milestones achieved under his leadership but did not mention any concrete solutions to address the looming shortfall.
Bisignano did write: “As we celebrate this 90th anniversary, we must also keep our eyes firmly on the future. Social Security is not a program of the past; it is a promise to future generations. Young Americans entering the workforce today deserve the same sense of security their parents and grandparents had. Maintaining that trust will require thoughtful innovation and a shared commitment to protecting the integrity and solvency of the program.”