Social Security at 90: Report Warns of Funding Threat 

On Social Security’s 90th anniversary, the program that serves as a financial lifeline for many continues to face a funding threat. 

A recently released report from the Transamerica Center for Retirement Studies, based on polling of more than 10,000 U.S. adults in fall 2024, found that 69% of Americans expect Social Security to be part of their retirement income—and nearly one-third expect it to be their primary source of income in retirement. 

The program remains especially critical for lower-income retirees. Among those with household incomes less than $50,000, 52% said they expect to rely primarily on Social Security, compared with just 13% of those earning $200,000 or more. Women are also more likely than men to depend on the benefit, with 36% of women anticipating it as their main source of retirement income, compared with 27% of men. 

However, Social Security trust funds are depleting and, without congressional action, are projected to force reduced benefit payouts by 2034, earlier than previously thought, according to the Social Security Administration. If Congress fails to make changes to the program, the SSA would have to cut benefits by 19%. 

A PensionBee analysis found that the shortfall would mean retirees would need another $100,000 in added savings to make up for the reduced federal benefits. 

According to the Transamerica report, workers are growing anxious that the program will eventually have to cut benefits: 37% of respondents list the reduction or disappearance of Social Security benefits as one of their greatest retirement fears, second only to declining health requiring long-term care. Among those not yet retired, 71% say they are concerned the program “will not be there for me” when they retire. 

As to how to address the shortfall, respondents mostly favored tax changes: 38% support increasing the maximum earnings level that is subject to payroll taxes backing the program; 35% back raising the payroll tax rate; and 28% favor preserving benefits for retirees in greatest need. Only 5% believe Congress should “do nothing.”  

President Donald Trump’s expansive tax and policy bill, which became law on July 4, extended the tax cuts passed during his first term, which the SSA stated will further accelerate the depletion of Social Security funds. 

The Transamerica Institute report urged Congress to address the safety net program’s funding shortfall.  

“With the Social Security trust funds’ estimated depletion on the horizon, now is the time for policymakers to identify and implement reforms that can help ensure the program’s sustainability for the next 90 years,” the report stated.