Will Social Security still be around in 2025? The definitive answer

Oct 23, 2025 3 min read •

senior care Retirement Planning Financial Wellness

As of 2025, Social Security provides benefits to nearly 69 million Americans and is still around. However, reports from the program's Trustees warn that while full payments are currently secure, the long-term outlook requires attention regarding future funding.

Quick Summary

Yes, Social Security is still operating in 2025, delivering full benefits to millions of Americans as it has for decades. The program's core funding remains solid for the near term, even as longer-term financial challenges persist that will require legislative action to address.

Key Points

Current Status: Yes, Social Security is fully operational and paying 100% of scheduled benefits in 2025.
Benefit Changes: For 2025, a 2.5% COLA, increased taxable earnings, and the elimination of WEP/GPO under the Social Security Fairness Act were implemented.
Trust Fund Depletion: The combined trust fund is projected to be depleted in 2034, but this does not mean the program will end.
Ongoing Funding: Even after depletion, ongoing payroll taxes will cover approximately 81% of scheduled benefits, with benefits likely reduced, not eliminated.
Congressional Action: Lawmakers have options like raising taxes or adjusting benefits to restore long-term solvency, but delaying action makes future changes more abrupt and difficult.
Personal Planning: Individuals should not rely solely on Social Security for retirement and should consider increasing personal savings and other strategies.

The short answer: A resounding "yes" for 2025

For anyone receiving or planning to receive benefits, the answer is a straightforward and reassuring yes. In 2025, Social Security is fully operational and is paying 100% of scheduled benefits to retirees, disabled workers, and survivors. The program's resilience is built on its primary funding source: the payroll taxes collected from current workers. This revenue stream ensures that benefits continue to be paid.

Key changes for 2025

For 2025, several updates confirm the program's operational status:

2.5% COLA: Social Security benefits saw a 2.5% cost-of-living adjustment for 2025.
Increased Taxable Maximum: The maximum earnings subject to Social Security tax increased to $176,100 in 2025.
Social Security Fairness Act: A new law eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), potentially increasing benefits for some public-sector workers.
Transition to Electronic Payments: The SSA is transitioning to all electronic benefit payments, starting September 30, 2025.

These are normal program updates, not signs of it being phased out.

The long-term forecast: Why concerns exist

While the program is not in immediate danger, its long-term financial health is a concern. The 2025 OASDI Trustees Report projects that the combined trust fund reserves will be depleted in 2034, which is one year earlier than projected in the 2024 report. This doesn't mean the program collapses. After depletion, incoming payroll taxes would still cover about 81% of scheduled benefits in 2034, decreasing to 72% by 2099. This represents a shortfall, not total bankruptcy.

Understanding the Social Security Trust Funds

The program operates through two trust funds:

Old-Age and Survivors Insurance (OASI) Trust Fund: Pays retirement and survivors benefits, projected to be depleted in 2033.
Disability Insurance (DI) Trust Fund: Pays disability benefits, projected to remain solvent for over 75 years.

The funds are legally separate, though often discussed together. Moving resources between them would require legislation.

Comparing the trust funds and solvency


Feature	Trust Fund Status (Intermediate Assumption)	Post-Depletion Scenario
Current Operation (2025)	Full payments for all scheduled benefits.	Not applicable
OASI Fund Depletion	Projected for 2033.	Can still pay about 77% of scheduled benefits from payroll taxes alone.
Combined OASDI Depletion	Projected for 2034 (one year earlier than 2024 projection).	Can still pay about 81% of scheduled benefits from payroll taxes alone.
DI Fund Status	Projected to remain solvent beyond 75 years.	Not applicable
Long-Term Outlook	Long-term actuarial deficit of 3.82% of taxable payroll.	Scheduled benefits cannot be paid in full without legislative changes.

What policymakers are considering

Policymakers are discussing ways to address the funding gap. Potential solutions include:

Increasing the payroll tax rate.
Raising the taxable earnings cap.
Adjusting the retirement age.
Changing the COLA formula.

The importance of acting now

Delaying action makes future solutions harder and potentially more impactful. Timely reforms allow for gradual changes. Experts urge bipartisan solutions. For more details, consult the Social Security Administration's Office of the Chief Actuary.

Preparing for Social Security’s future

It's wise to take proactive steps for your retirement plan. Social Security should be a foundation, not the sole source of income. Consider:

Increasing personal savings through accounts like 401(k)s and IRAs.
Delaying claiming benefits past your Full Retirement Age (FRA) to increase monthly payments.
Using SSA online tools to estimate your benefits.
Consulting a financial advisor for a comprehensive plan.

Conclusion: A resilient, but evolving, program

Social Security will still be around in 2025. It's a vital program paying benefits to millions. However, it needs adaptation due to changing demographics. The long-term challenge is a potential need for benefit adjustments if Congress doesn't act, not total collapse. Understanding the program and planning proactively can help you navigate these changes.

Frequently Asked Questions

After the trust fund reserves are projected to be depleted around 2034, you would still receive benefits funded by ongoing payroll taxes. However, without legislative changes, those payments would likely be reduced to cover only a portion of the scheduled amount, estimated at around 81% initially.

No, Social Security will not run out completely. The program is funded by payroll taxes collected from current workers. As long as there are workers paying taxes, there will be funds to pay benefits, though they may be reduced if no legislative action is taken.

Policymakers are debating several options to address the funding shortfall. These include increasing the payroll tax rate, raising the maximum amount of income subject to the tax, adjusting the retirement age, and altering the formula used for annual Cost-of-Living Adjustments (COLAs).

If you are a retired teacher, firefighter, or another public-sector worker affected by the now-repealed WEP or GPO, the Fairness Act could increase your Social Security benefits. You would need to check your specific situation with the SSA to see how you are affected.

It is always wise to have a diversified retirement plan that does not rely on any single source of income. While Social Security is expected to remain a vital part of retirement, planning for potential future adjustments is a prudent step. Boosting personal savings in 401(k)s and IRAs provides greater financial security.

The shortfall is primarily due to shifting demographics. The worker-to-retiree ratio is decreasing as the large baby boomer generation retires and birth rates have slowed. Additionally, income inequality has grown, leading to a smaller percentage of total national wages being subject to Social Security tax.

The 2.5% COLA for 2025 means that your monthly Social Security check increased by that percentage. For the average retiree, this amounted to a small but meaningful increase in their monthly payment to help offset inflation.

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.