The Social Security Board of Trustees today released its 2024 annual report, providing a critical update on the financial health of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are now expected to cover all scheduled benefits until 2035, a year later than previous estimates.
The report details a $41 billion decline in asset reserves in 2023, bringing the total to $2.788 trillion. Despite this decline, increased revenues from higher wages and employment have improved the outlook. The Trustees highlighted that total costs for the program are anticipated to exceed annual income starting in 2024, continuing a trend that began in 2021. By the projected depletion year of 2035, incoming revenues would still support 83% of scheduled benefits.
Social Security Commissioner Martin O’Malley emphasized the importance of congressional action to secure the future of the Trust Funds. “This year’s report is a measure of good news for the millions of Americans who rely on Social Security. More people contributing to Social Security, thanks to strong economic policies, have delayed the potential benefit reduction event from 2034 to 2035,” O’Malley said. He urged Congress to debate and act on existing proposals to address the shortfall, emphasizing that the choices involve political preferences rather than affordability.
The 2024 report also shared that total income to the Trust Funds, including interest, amounted to $1.351 trillion in 2023, with expenditures totaling $1.392 trillion. Social Security paid out benefits totaling $1.379 trillion to approximately 67 million beneficiaries by the end of 2023.
The program’s administrative costs were notably efficient, comprising only 0.5% of total expenditures, or $7.2 billion. The Trustees also noted a reduction in the projected actuarial deficit over the next 75 years, now estimated at 3.50% of taxable payroll, down from 3.61% last year.
The Board of Trustees includes Janet Yellen, Secretary of the Treasury and Managing Trustee; Xavier Becerra, Secretary of Health and Human Services; Julie Su, Acting Secretary of Labor; and Martin O’Malley, Commissioner of Social Security. The two public trustee positions are currently vacant.
For detailed insights and further information, the 2024 Trustees Report is available at www.ssa.gov/OACT/TR/2024/.
