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Social Security is funded mainly by payroll taxes, with additional income from taxes on some benefits and interest earned on trust fund reserves. A projected trust fund depletion date does not mean Social Security stops collecting money or paying benefits. It means the reserve buffer is expected to run out; under the 2026 Trustees’ intermediate projections, continuing income would cover only part of scheduled benefits.
Where Social Security’s money comes from
Social Security’s retirement, survivor, and disability programs are financed almost exclusively by three streams: payroll taxes, income taxes on some Social Security benefits, and interest on trust fund reserves. Employees and employers each pay payroll taxes; self-employed workers pay both shares. The Social Security Administration (SSA) describes these funding sources in its 2026 Trustees Report summary.
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These revenue streams work together: payroll taxes and benefit-tax revenue flow into the funds, while interest is earned on accumulated reserves. When a fund’s income is greater than its costs, reserves grow; when income falls short, reserves can help cover the difference. That distinction between ongoing income and accumulated reserves is central to understanding what a depletion projection says.
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Payroll taxes
For 2026, the total Social Security payroll tax rate is 12.40% of covered earnings, split equally between employees and employers: each pays 6.20%. A self-employed worker generally pays the combined 12.40% rate. These rates include the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) portions:
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| 2026 contribution | OASI | DI | Combined OASDI |
|---|---|---|---|
| Employee | 5.30% | 0.90% | 6.20% |
| Employer | 5.30% | 0.90% | 6.20% |
| Self-employed worker | 10.60% | 1.80% | 12.40% |
For 2026, these rates apply to earnings up to an annual taxable maximum of $184,500. The limit is the maximum amount of covered earnings subject to the Social Security payroll tax for that year; the rates and maximum are specific to 2026 and should not be treated as permanent values. SSA reports these figures in its 2026 Trustees Report summary.
The split in the table also shows why the separate funds matter: the OASI portion supports retirement and survivors benefits, and the DI portion supports disability benefits. For employees and employers, the listed portions add to 6.20% each; for self-employed workers, they add to the combined 12.40% rate. The figures are contribution rates, not the percentage of scheduled benefits the Trustees project will be payable after depletion.
Taxes on Social Security benefits
Depending on income and filing status, beneficiaries may have to include up to 50% or 85% of their Social Security benefits in taxable income. The tax revenue attributable to the first 50% of benefits included in taxable income goes to OASI and DI. Revenue attributable to inclusion above 50% goes to Medicare’s Hospital Insurance (HI) trust fund, not to Social Security’s OASI or DI funds. These are rules about how revenue is allocated, not a tax on every beneficiary at the same rate.
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In other words, benefit taxation is one of the program’s revenue sources, but it does not mean that every person receiving benefits pays tax on the same portion. The portion that may be included depends on income and filing status, and the revenue allocation differs depending on whether inclusion is within or above the first 50%.
Interest on reserves
When a trust fund’s income exceeds its costs, the surplus adds to its reserves. The Treasury invests those reserves in special, non-marketable U.S. government securities backed by the full faith and credit of the United States. Interest on those securities is another source of trust fund income. Reserve balances therefore reflect prior surpluses and deficits as well as interest earned over time.
These securities are not traded on public markets. The reserve balance represents accumulated trust fund resources invested in Treasury securities; it is not a separate source of payroll-tax revenue. Interest adds income while reserves remain invested, but the Trustees’ projections also account for costs and income over time.
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Why there are two Social Security trust funds
Social Security has two legally separate trust funds. OASI pays retirement and survivors benefits; DI pays disability benefits. Each fund pays the kinds of benefits it is authorized to cover. The two are often discussed together as Old-Age, Survivors, and Disability Insurance, or OASDI, for program-wide analysis. That combined label does not merge the funds or change their separate legal status.
The distinction matters when discussing depletion. The Trustees publish a projection for OASI alone and another for hypothetical combined OASDI. The combined projection is useful for analyzing the program as a whole, but its date is not the projected depletion date for OASI alone. Because OASI and DI remain legally separate, the combined date should be described as an analytical scenario, not as a legal consolidation of the funds.
For a reader asking when retirement and survivor benefits face a projected reserve shortfall, the relevant figure is OASI: the 2026 report projects its reserves will deplete in 2032 Q4. The combined OASDI figure answers a different question—what the projections show if the finances of the two programs are considered together. DI has its own projection, and the 2026 report projects its reserves remain positive through 2100.
What the 2026 projections say
The 2026 Trustees Report uses intermediate assumptions for its central projections. Under those assumptions, OASI reserves are projected to deplete in the fourth quarter of 2032. DI reserves are projected to remain positive throughout the 2026–2100 projection period. If the two legally separate funds are considered together, combined OASDI reserves are projected to deplete in the third quarter of 2034. The estimates and payable-benefit percentages below come from the Trustees’ 2026 report highlights.
| Projection | Projected reserve depletion | Scheduled benefits payable at depletion | Legal status |
|---|---|---|---|
| OASI alone | Fourth quarter of 2032 | 78% | One legally separate fund, paying retirement and survivors benefits |
| DI alone | No depletion projected through 2100 | Not applicable; reserves remain positive through the projection period | One legally separate fund, paying disability benefits |
| Combined OASDI | Third quarter of 2034 | 83% | Analytical combination of OASI and DI; the funds remain legally separate |
The projected payable share falls further after depletion under the same intermediate assumptions. For OASI, projected income would cover 62% of scheduled benefits by 2100; for combined OASDI, it would cover 65%. These are projections, not guaranteed outcomes or percentages fixed by law.
The table’s two dates should not be swapped or treated as competing estimates for exactly the same fund. OASI alone is projected to deplete in 2032 Q4, while the hypothetical combined OASDI projection is 2034 Q3. The projected shares at those points also differ: 78% for OASI and 83% for combined OASDI. Always identify which fund a date refers to when comparing headlines or summaries.
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What “trust fund depletion” means
Depletion means that a fund’s accumulated reserves—the buffer built up when past income exceeded costs—have been exhausted. It does not mean that payroll taxes stop being collected, that all other income disappears, or that benefits automatically become zero. In the Trustees’ projections, payroll taxes and other income continue to flow in after reserves are depleted, but that income is not enough to pay the full amount of benefits scheduled under current law.
The projected percentages describe the share of scheduled benefits that continuing income would support under the report’s assumptions. For example, the 78% OASI figure means projected income at the 2032 Q4 depletion point would cover 78% of scheduled OASI benefits; it does not mean every person’s check is certain to be cut by exactly 22%. The projection does not determine how any shortfall would be handled in practice, and it is not a statement that a specific reduction has already been enacted.
For that reason, “Social Security will run out of money” is misleading unless it is clarified. The projected reserve is what runs out. The system continues to receive revenue, although the Trustees project that revenue would fall short of scheduled benefits. Depletion is therefore a funding shortfall relative to scheduled benefits under current law, not a forecast that all benefit payments cease.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesThe date and percentage are tied to a specific set of assumptions. They describe what the Trustees’ projections show if current law and the report’s intermediate assumptions apply; they are not a promise about the precise date or an individual’s exact future payment. Do not present an across-the-board benefit reduction as a settled law or certain personal outcome based only on the depletion estimate.
Social Security’s recent financial position
The latest calendar-year figures in the SSA’s June 9, 2026 release show how the trust fund picture can change as current income and costs interact. In 2025, combined OASI and DI reserves declined by $160 billion, ending the year at $2.56 trillion. Total income, including interest, was $1.45 trillion, while expenditures were $1.61 trillion.
| Combined OASI and DI, calendar year 2025 | Amount |
|---|---|
| Net payroll tax contributions | $1.32 trillion |
| Income from taxation of benefits | $58 billion |
| Interest | $69 billion |
| Total income, including interest | $1.45 trillion |
| Expenditures | $1.61 trillion |
| Reserve change | Declined by $160 billion, to $2.56 trillion |
Social Security paid $1.60 trillion in benefits during 2025. At year-end, 70 million people were beneficiaries; during the year, 185 million people had covered earnings and paid Social Security payroll taxes. These are calendar-year 2025 figures published by the SSA in its June 9, 2026 release, not estimates for a later year.
The figures illustrate the difference between income and expenditures: total income including interest was less than expenditures, and the combined reserves fell during the year. The $160 billion decline was a change in the accumulated reserve balance, not an indication that payroll contributions stopped. Meanwhile, the $1.32 trillion in net payroll tax contributions remained the largest listed income component, alongside benefit-tax revenue and interest.
The 2025 numbers are a snapshot of the combined funds’ finances for that calendar year. They do not by themselves determine the future depletion date, which comes from long-range projections using assumptions about future income and costs. Nor should the combined annual totals be used to imply that OASI and DI have become a single legal fund.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to interpret the uncertainty
A depletion date is a long-range projection built from assumptions about the program’s future finances, not a scheduled event that can be known with certainty today. The 2026 Trustees set their intermediate assumptions in February 2026 and say they will monitor developments, reevaluate assumptions, and modify later projections. Future reports may therefore show different dates or payable shares.
The report also measures a broader long-term financing gap: its 75-year actuarial balance for combined OASDI is a deficit equal to 4.42% of taxable payroll. That figure is a measure across the valuation period, not a payroll tax rate currently being charged or a forecast of an individual’s benefit. The Trustees’ 2026 highlights present it alongside the reserve projections.
The actuarial deficit and the depletion date describe related but different aspects of program finances. The depletion date concerns when projected reserves are exhausted; the 4.42% of taxable payroll figure describes the combined program’s 75-year actuarial balance. It is not a current deduction from a worker’s paycheck, nor does it say what a particular beneficiary will receive.
The Trustees say lawmakers have options to address long-term financing shortfalls. The projections describe the system under current law and stated assumptions; they do not specify which policy changes lawmakers might adopt or when. The SSA’s summary notes that “Lawmakers have many options for changes that would reduce or eliminate the long-term financing shortfalls.” That statement is about the existence of possible policy responses, not a prediction that any particular option will be enacted.
What to keep in mind when you see a depletion headline
- Check whether the headline refers to OASI alone or to hypothetical combined OASDI; their projected depletion dates differ.
- Check the report year and assumptions. The dates and payable shares cited here are the 2026 Trustees’ intermediate projections.
- Distinguish reserves from ongoing income. Depletion concerns the accumulated buffer, not the end of payroll tax collections.
- Read “payable” as a projection of income relative to scheduled benefits, not as a settled benefit cut for each person.
- Keep the fund’s legal status in view: OASI and DI are separate even when the Trustees show a combined OASDI analysis.
Frequently Asked Questions
How is Social Security funded?
OASI and DI are financed almost exclusively by payroll taxes, income taxes on some Social Security benefits, and interest on trust fund reserves. Employees and employers each pay payroll taxes, while self-employed workers pay both shares. Treasury invests reserve balances in special non-marketable U.S. government securities.
What happens when the Social Security trust fund runs out?
“Runs out” refers to accumulated reserves being depleted, not to revenue stopping. Under the 2026 Trustees’ intermediate projections, income would continue but would not cover all benefits scheduled under current law. At depletion, projected income covers 78% of scheduled OASI benefits or 83% under the hypothetical combined OASDI projection.
When are Social Security’s trust funds projected to be depleted?
The 2026 Trustees’ intermediate projections put OASI reserve depletion in the fourth quarter of 2032 and hypothetical combined OASDI depletion in the third quarter of 2034. DI reserves are projected to remain positive through 2100. These dates refer to different fund definitions.
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No. The projections say that payroll taxes and other income continue after reserves are depleted, but the income is insufficient to pay the full scheduled amount. The projected payable percentages are not a statement that benefits go to zero or a settled, individual benefit cut.
Why is the combined OASDI date later than the OASI date?
OASI and DI are legally separate funds, but the Trustees also analyze them together as combined OASDI. The combined projection includes both funds’ finances and is useful for program-wide analysis; it does not change their legal status or replace the OASI-alone projection.
Are the 2026 depletion dates certain?
No. They are projections based on the Trustees’ intermediate assumptions, which were set in February 2026. The Trustees say they will monitor developments and reevaluate assumptions, so later reports may show different dates or payable shares.
The Bottom Line
Social Security is funded primarily by payroll taxes, with additional revenue from taxes on some benefits and interest on reserves. The 2026 Trustees project that OASI reserves will deplete in 2032 Q4, while a hypothetical combined OASDI projection reaches depletion in 2034 Q3. In either case, depletion means reserves are exhausted—not that revenue or all benefit payments stop. The projected payable share is less than the full scheduled amount, and the estimates may change as assumptions and future finances evolve.
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