Social Security Trust Fund Depletion Expected to Accelerate Benefit Cuts by 2035, Treasury Report Confirms
WASHINGTON, D.C. — The Social Security Trust Fund is projected to face accelerated depletion by 2035, according to a newly released Treasury Department report. The forecast indicates that without legislative intervention, the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds will be unable to pay full scheduled benefits to retirees and beneficiaries. Treasury Secretary Janet Yellen confirmed the findings on Monday, noting that the depletion timeline has been revised forward by one year due to slower economic growth and lower-than-expected wage contributions. Starting in 2035, incoming payroll tax revenue will only cover approximately 79% of promised benefits, triggering automatic reductions unless Congress agrees to reforms. The report cites no single cause but points to demographic shifts, including declining birth rates and an aging population, as primary drivers. The Social Security Administration has urged lawmakers to consider measures such as raising the payroll tax cap, increasing the retirement age, or adjusting benefit formulas to address the shortfall. The announcement has sparked renewed debate on Capitol Hill, with bipartisan calls for a task force to propose a long-term solvency plan.