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Social Security's Reserves Set to Dry Up by 2033, Benefit Cuts Loom
16 Nov
Summary
- 80-90% of retirees rely on Social Security to cover expenses
- Social Security's long-term unfunded obligation reaches $25.1 trillion by 2025
- Benefit cuts of up to 23% may be necessary by 2033 if trust fund reserves are exhausted
According to the article, Social Security's financial health is a growing concern for retirees and lawmakers alike. As of 2025, the program's long-term unfunded obligation has reached a staggering $25.1 trillion, and its Old-Age and Survivors Insurance (OASI) trust fund is expected to exhaust its asset reserves by 2033.
This is a critical issue, as the article states that 80% to 90% of retirees rely on their Social Security payouts to cover their expenses. The depletion of the OASI's asset reserves could lead to sweeping benefit cuts of up to 23% by 2033, which would significantly impact the financial security of millions of aging Americans.
Despite the importance of Social Security to retirees, lawmakers have been slow to address the program's financial challenges. The article notes that this problem has been looming for decades, and the time for action is running out. If the OASI's asset reserves are exhausted, the consequences could be dire for those who depend on Social Security as a financial foundation in their retirement years.
