It has been projected that SSA, which manages Social Security payments for about 72.5 million retirees, disabled people and children, will have funds depleted around 2035. Last year, Social Security paid over $1.5 trillion in benefits to more than 72 million beneficiaries.

“The Social Security Trust Fund is approaching a historic inflection point: unless Congress acts, the program will be unable to pay full promised benefits to retirees within the next decade,” according to SCEPA. “This looming shortfall is not just a future concern—it is the consequence of demographic and economic trends set in motion decades ago, and now converging in real time.”

“Retirement security in the United States is at a critical turning point,” according to SCEPA. As baby boomers age, there are more retirement-age Americans—and more families relying on Social Security—than at any point in history. Yet SSA is paying out more than it collects, and “without legislative action, the Trust Fund will be depleted within a decade,” According to SCEPA
While most private retirement savings have shifted from pensions to 401(k)s, near-retirees are exposed to financial volatility they cannot control, according to SCEPA. This “dual vulnerability”—an underfunded Social Security system and risky private retirement savings—demands urgent government action, says SCEPA.

SCEPA’s policy note highlights how shifting economic, demographic, and policy landscapes are reshaping the future of retirement for millions of American households. To meet this historic challenge, “bold legislative action and thoughtful governance” will be needed to ensure Americans can retire with dignity and lasting financial security, according to SCEPA.

Related: How Trump can rebuild trust in Social Security, before it’s too late: Schwartz Center

SCEPA’s policy note emphasizes four key steps Congress and the President must take to ensure Social Security can meet its long-term obligations and serve the growing number of beneficiaries:

1. Raise revenue for Social Security to allow Social Security to meet and expand its obligations.
2. Reverse layoffs and restore SSA staffing to meet growing demand.
3. Cancel planned SSA office closures and modernize infrastructure carefully and respectfully.
4. Rebuild public trust in the system by maintaining stable operations, clear communications, and professional stewardship.

“Social Security has never missed a payment in nearly 90 years,” concludes SCEPA. “It is not only a financial program, but also a promise—an intergenerational commitment that must be honored.”