entitlements
It’s Too Late to Fix Social Security
May 8 2026
Ten years ago subscribers would have read on this page "What’s Going to Happen to Your Social Security?". It told you that, according to the Congressional Budget Office (CBO), starting in 2033 Social Security will be short of funds unable then to pay full benefits should Congress fail to fix the shortfall.
In the ten years since, Congress has done nothing. This looming catastrophe 40% of seniors depend on Social Security as their only source of income yet Congress does nothing.
And so, just six years from now, the Social Security trust fund will run out of money by 2032, “resulting in benefit cuts of 22.5% in 2033”, says the CBO.
the mechanicsFor many decades, the Social Security Administration (SSA) took in more from payroll taxes than it paid out as benefits to seniors and persons with disabilities. The difference was loaned in a constant stream to the government in exchange for IOUs with the growing deposits referred to as a trust fund.
As the bulge of the post-World War II baby boomer generation began to retire, by 2021 benefit outlays began to exceed tax receipts, and the SSA had to start calling in the IOUs from the government trust fund to cover the gap. The trust fund will be completely drained at some point in 2032 leaving, beginning the following year, only the income of payroll taxes, and that income will be 22.5% shy of what will be needed as benefits to be paid out to retirees. What to do?
fixesThere is no end to the ideas for adjustments that would put Social Security's finances back on firm footing. Trouble is, it is now so late that none of them have enough time to pull in funding sufficient to fill the void. There's a reason to know what fixes there are, nevertheless, to answer the question of whether Social Security can be saved in the long run, or whether it has become unworkable in its… Read More »


