finance
Social Security OASI Trust Fund Projected to Deplete in Q4 2032, With 78 Percent of Benefits Still Payable
The Social Security trustees' annual report projects depletion of the Old-Age and Survivors Insurance trust fund in the fourth quarter of 2032, when 78 percent of scheduled benefits would be payable. The new estimate arrives several months earlier than prior forecasts and has prompted lawmakers to advance proposals raising payroll taxes on high earners.
Jun 25, 5:20 PM·1m read1 source
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The Social Security trustees released their annual report this month projecting depletion of the Old-Age and Survivors Insurance trust fund in the fourth quarter of 2032. At that point 78 percent of scheduled benefits would remain payable, according to the trustees. The projection is several months sooner than the previous estimate.
Earnings up to the current $184,500 payroll tax cap are subject to Social Security taxes. Individuals earning $1 million in wages and salaries stopped paying into the program for 2026 on March 9, the Center for Economic and Policy Research reported. On Tuesday Sens.
Elizabeth Warren and Bernie Moreno wrote an op-ed stating they are working on legislation to lift the cap. At a Wednesday Senate Finance subcommittee hearing Sen. Bernie Sanders said it is time to ask the wealthiest people to start paying their fair share of taxes.
Sanders has proposed the Social Security Expansion Act, co-sponsored by Warren and nine other Senate Democrats. The measure would raise taxes on wages, salaries and self-employment earnings over $250,000, increase the net investment income tax and subject active trade or business income to those levies. Rep.
John Larson proposed the Social Security 2100 Act in 2023. That bill would apply payroll taxes to income over $400,000 and has not been reintroduced in the current session of Congress. The payroll tax cap is adjusted annually for wage growth.
In 1983 the cap covered 90 percent of eligible earnings; by 2000 the share had fallen to about 82.5 percent and has remained near that level, Stephen Nuñez of the Roosevelt Institute said. The present value of Social Security's unfunded obligations stands at $30 trillion, Sen. Chuck Grassley said at the hearing.
