Social Security’s Funding and Future

1-minute read

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Social Security is a bedrock of the U.S. retirement system, providing a measure of financial security and independence to tens of millions of older Americans and promising the same to more than 180 million workers now contributing to the system.

But the program faces a funding shortfall. Its two trust funds currently have a surplus, but they are projected to exhaust their reserve funds in 2034. Unless Congress acts before then, Social Security’s annual revenues will cover only about 83 percent of scheduled benefits.

This series outlines the basics of Social Security’s finances in easy-to-understand terms. It walks you through where the program gets its revenue and how the payroll tax works, presents the facts (and tackles the myths) about Social Security’s future and shows what AARP is doing to ensure the program is preserved and strengthened for current and future generations.