Social Security Trust Fund Depletion Predicted for 2035, Setting Off Washington Firestorm
The latest Social Security and Medicare trustees report confirms the Social Security trust fund will be depleted by 2035, at which point automatic benefit cuts of 17% will hit every recipient. This is a fiscal and political doomsday clock. The Congressional Budget Office warns the window for a non-disruptive fix is closing, with payroll tax hikes or benefit age increases being the only viable levers. The C-suite impact is immediate: deferred consumer spending, higher payroll tax risk, and a looming intergenerational liability that will reshape workforce retention strategies for older employees.