Industry News

On May 6, 2024, the Social Security Board of Trustees released its annual report on the program’s financial and actuarial status. In 2023, Social Security paid benefit payments to about 67 million beneficiaries and the total cost of the program was $1,392 billion. According to the report, the combined assets of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds are projected to be depleted in 2035 (one year later than projected last year). Should this occur, Social Security would be able to pay only 83% of scheduled annual benefits at that time. ​

Furthermore, the OASI Trust Fund is projected to be depleted in 2033 (the same as last year’s estimate) with 79% of benefits payable at that time. The DI Trust Fund is not projected to be depleted during the 75-year period ending in 2098. According to the report, the disability program continues to have favorable trends of low levels of disability applications and benefit awards. Since 2010, disability applications have been declining and the total number of disabled-worker beneficiaries receiving payments has been decreasing since 2014.   

Over the 75-year long-range period from 2024 to 2098, the actuarial deficit of the combined OASI and DI Trust Funds is 3.50% of taxable payroll, down from 3.61% in 2023. Expressed in relation to the Gross Domestic Product (GDP), the annual cost of Social Security benefits is projected to increase from 5.2% of GDP in 2024 to a peak of about 6.4% in 2078, and declines to 6.1% by 2098. 

The trustees recommended that lawmakers address the trust fund deficits soon in order to gradually phase-in the necessary changes to allow workers and beneficiaries time to adjust to them as well as to protect future generations.  

The report is available here.