The 2024 Trustees Report Shows that Social Security is Benefiting From a Strong Economy
The 2024 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, released today, shows that our Social Security system remains fully affordable.
This year’s report announces that, thanks to a strong and growing economy, Social Security can pay all benefits and associated administrative costs in full until 2035, one year later than projected in last year’s report. After that, it can pay 83 percent percent of benefits, also an improvement over last year — even if Congress were to do the unimaginable, and take no action whatsoever.
Social Security has an accumulated surplus of $2.79 trillion. It is 90 percent funded for the next quarter century, 83 percent for the next half century, and 81 percent for the next three quarters of a century. At the end of the century, in 2100, Social Security is projected to cost just 6.1 percent of gross domestic product (“GDP”). The following is a statement on the report from Nancy Altman, President of Social Security Works:
“Today’s report shows that our Social Security system is benefiting from the Biden economy. Due to robust job growth, low unemployment, and rising wages, more people than ever are contributing to Social Security and earning its needed protections. As a result, Social Security can pay all promised benefits until 2035, one year longer than projected in last year’s report, and 83 percent of benefits thereafter, also an improvement over last year — even if Congress takes no action whatsoever.
That said, Congress should take action sooner rather than later to ensure that Social Security can pay full benefits for generations to come, along with expanding Social Security’s modest benefits. That will restore one of the most important benefits Social Security is intended to provide to the American people — a sense of security.
Congressional Democrats have introduced several plans that would do just that. These plans are paid for by requiring millionaires and billionaires to contribute more of their fair share. That is particularly appropriate since, according to Social Security’s chief actuary, rising inequality is the primary unanticipated reason that Social Security faces a funding shortfall in a decade. That inequality has cost Social Security $1.4 trillion over the last decade.
Proposals to protect and expand Social Security are bipartisan in the only way that really matters — they have strong support from Republican and independent voters, as well as Democrats. In contrast, 92 percent of voters oppose cutting benefits.
President Biden is listening to the American people. As today’s report shows, Biden’s economic policies are already strengthening Social Security — and he understands that more is needed. His most recent budget calls for protecting and expanding Social Security by requiring the wealthiest to contribute their fair share.
In contrast, Republicans want to cut benefits despite overwhelming opposition from the American people. The most recent budget of the Republican Study Committee, which consists of about three quarters of House Republicans, contains over $1.5 trillion in cuts to Social Security in just the next ten years. These cuts include raising the retirement age and deeply slashing middle-class benefits, radically transforming Social Security towards a flat, poverty-level pittance instead of an earned benefit.
It’s not just Congressional Republicans. Presumptive Republican nominee Donald Trump, despite his protestations to the contrary, also supports benefit cuts. He also favors slashing Social Security’s dedicated revenue. In addition, Trump plans to sharply restrict immigration. This would harm Social Security by reducing the number of workers paying in.
Ultimately, the question of whether to expand or cut Social Security’s modest benefits is a question of values and choice, not affordability. The United States is the wealthiest nation on Earth at the wealthiest moment in our history. We can use that wealth to protect and expand Social Security, or to provide yet more tax handouts to billionaires.
This report is a reminder that the next decade is a crucial one for Social Security’s future. Americans should vote accordingly this November.”