When will Social Security run out of money?

Social Security's trust fund is projected to deplete by the end of 2032, after which benefit payments may be reduced.

What is the 2026 COLA for Social Security recipients?

The cost-of-living adjustment (COLA) for Social Security in 2026 is set at 2.8%, a slight increase from the previous year.

Will my Social Security taxes increase in 2026?

Yes, high earners may see increased Social Security taxes withheld from their paychecks starting in January 2026.

Home / Business and Economy / Social Security Faces Crisis: Benefits at Risk by 2032

Social Security Faces Crisis: Benefits at Risk by 2032

13 Dec, 2025

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Summary

Social Security trust fund may deplete by late 2032.
2026 COLA will be 2.8%, rising from 2.5% this year.
High earners may face increased Social Security taxes in 2026.

Social Security Faces Crisis: Benefits at Risk by 2032

Social Security faces significant challenges, requiring reforms within seven years to maintain full benefit payments. The program's trust fund is anticipated to deplete by the end of 2032, a timeline that necessitates legislative action to prevent mandated benefit reductions for millions of retirees.

Several annual adjustments will impact recipients in 2026. The cost-of-living adjustment (COLA) will increase to 2.8%, a modest rise from the previous year. However, this adjustment, based on inflation metrics that may not fully reflect seniors' expenses, could be insufficient to cover rising costs for housing, utilities, and healthcare.

Furthermore, certain high-earning workers can expect to contribute more in Social Security taxes starting in January 2026. The program's 12.4% tax applies to wages up to an annual limit, with earnings above this threshold only subject to Medicare taxes. These upcoming changes underscore the ongoing need for comprehensive Social Security reform.