Currently 10,000 people a day or 3,650,000 a year are reaching retirement age and eligible for Social Security. Of those roughly 60% will retire and apply for Social Security in the coming years adding over 2,000,000 million receiving Social Security each year. Meanwhile the costs associated with Social Security have been going up over 3.3% a year which will likely increase to over 5% as more people receive Social Security benefits in the years ahead. Meanwhile Social Security Receipts have begun to flatten out as unemployment remains rather high. It's my guess Social Security Receipts will not grow more than 1% a year for the next several years.
Taking all of these factors into account the chart below shows how the Social Security Trust Fund (blue line) may become exhausted by the end of 2025. Keep in mind by law when the Trust Fund is exhausted all benefits must be cut by 25%. Thus to keep the Social Social Security Trust Fund solvent in the long run some tough decisions will have to be made soon.
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