Social Security is paying out more than it can bring in, leaving the government with a $67 billion problem

Core Points - The Social Security Fairness Act, signed into law by former President Joe Biden, expands benefits for public workers, but critics warn it may accelerate the depletion of Social Security trust funds [1] - The Social Security program has been paying out more in benefits than it collects in revenue since 2021, with projections indicating a funding shortfall [2][4] - The Social Security Board of Trustees projects that the combined trust funds will cover scheduled benefits in full until 2034, after which only 81% of benefits will be payable [5] Group 1: Financial Implications - In 2024, Social Security costs are projected at $1.48 trillion, while revenue is expected to be $1.42 trillion, resulting in a $67 billion decline in funds [4] - The Committee for a Responsible Federal Budget estimates that the One Big Beautiful Act (OBBBA) could accelerate the insolvency of the Social Security trust to 2032, potentially leading to a 24% cut in retirement benefits [4] Group 2: Policy and Operational Challenges - The Social Security Administration (SSA) plans to cut 12% of its staff, approximately 7,000 positions, which critics argue may negatively impact services [6] - A recent government shutdown has caused operational delays, including the temporary pause of benefit verification and updates, as well as the delay of the cost-of-living adjustment announcement for 2026 [7] Group 3: Retirement Planning Strategies - Many Americans rely heavily on Social Security, with over seven million individuals over 65 receiving 90% of their income from these benefits [8] - To mitigate reliance on Social Security, individuals are encouraged to maximize retirement accounts, invest wisely, and explore passive income sources [9][10] - Delaying Social Security benefits until age 70 can result in a larger monthly check, providing a strategic option for retirement planning [17]