Retirement news: Social Security trust funds still projected for 2034

The news: The biggest retirement news of early June came from the Social Security Board of Trustees, which released its 2026 annual report on June 9, 2026. The combined Old-Age and Survivors Insurance and Disability Insurance (OASDI) trust funds are still projected to be depleted in 2034, the same year as in the prior report. At that point, ongoing tax income would cover 83% of scheduled benefits.

Why it matters: The retirement fund on its own looks tighter. The OASI trust fund, which pays retirement and survivor benefits, is projected to run out in the fourth quarter of 2032, after which 78% of benefits would be payable. The Disability Insurance fund, by contrast, stays positive for the full 75-year projection period.

By the numbers:

• 4.42% of taxable payroll: 75-year actuarial deficit, up from 3.82% in the previous report
• $2.56 trillion: combined reserves at the end of 2025, down $160 billion during the year
• $1.45 trillion: total income in 2025
• $1.61 trillion: total expenditures in 2025, including $1.60 trillion in benefits
• 70 million: beneficiaries at the end of 2025
• 185 million: workers with covered earnings

The big picture: The headline depletion year held steady, but the long-range deficit grew noticeably, which means the size of the fix needed to keep the program fully funded for 75 years got larger. With costs exceeding income in 2025, the program drew down reserves, a pattern that continues until depletion unless Congress acts. Commissioner Bisignano called on lawmakers and the agency to work together to protect the trust funds.

What it means for households: Depletion does not mean benefits stop. Under the report’s projections, most benefits would remain payable from incoming taxes. Still, a cut of roughly one-sixth to one-fifth of scheduled benefits is a planning risk, especially for workers expecting to claim in the 2030s. Reviewing a Social Security statement and stress-testing a retirement budget against reduced benefits are reasonable steps.

Disability outlook: The DI fund’s solvency over the entire 75-year window is a bright spot, but it does not offset the retirement fund’s shortfall unless lawmakers reallocate between the funds, as the combined projection assumes.

What’s next: Watch for congressional proposals on revenue or benefit changes, and for next year’s report to see whether the deficit keeps widening.