OpenTheBooks CEO John Hart joins ‘Varney & Co.’ discussing long-term Social Security and Medicare deficits as fiscal pressures mount.
The clock is ticking on American workers and seniors.
The recently released Social Security Administration’s 2026 Trustees Report confirms that the federal retirement safety net is less than seven years away from funding cuts, as the Old-Age and Survivors Insurance (OASI) fund will completely exhaust accumulated savings by the fourth quarter of 2032.
If the reserve runs dry, continued tax revenue will cover only 78% of planned retirement benefits, according to the report.
“The One Big Beautiful Bill Act (OBBBA): Enacted on July 4, 2025, this law makes permanent the lower income tax rates and adjusted tax brackets originally enacted under the 2017 Tax Cuts and Jobs Act and both increases and makes permanent the larger standard deduction of the 2017 Act,” the report said.
AMERICANS RETHINK SOCIAL SECURITY TIME AS LIFELONG AND FEAR OF IDENTIFICATION CREATES ACCIDENTS
“The OBBBA also adds an additional temporary deduction for taxpayers over the age of 65,” it said. “As a result, less income tax will be paid on Social Security benefits, and the OASI and DI Trust Funds will receive lower levels of future income tax on Social Security benefits.”
A report by the trustees of the Social Security Administration, released on Tuesday, confirmed that the trust fund after the scheduled payment will be bankrupt by the end of 2032. (Getty Images)
The Congressional Budget Office (CBO) has previously warned about the fund’s expiration date, explaining that, “because the government will not have the legal authority to pay in excess of receipts, it will no longer be able to pay the full amounts planned or proposed under current law.”
Social Security benefits are funded by tax receipts and the OASI trust fund, and once the trust fund is depleted, the federal government will only be able to pay benefits equal to its income tax revenue under current law — meaning benefits will face cuts without an act of Congress.
Rep. David Schweikert, R-Az., highlights a potential 24% benefit cut under current law, warning that it could double extreme poverty in America as the Social Security Trust Fund is expected to run out by 2032, according to the report.
In an interview with the “Moon Griffon Show” on Monday, Speaker of the House Mike Johnson, R-La., said: “The reason we’re in trouble is because over 74% of federal spending is automatic spending — mandatory spending, which is your right programs like Medicare, Medicaid and things like Social Security — have to be fixed and fixed.”
“We have a plan to do that next year, and it’s important, because we are in debt of $ 40 trillion-plus. Sometimes you get into a hole so deep that you can’t get out of it, so difficult times call for desperate measures,” said Johnson.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Pontera founder and chairman Uri Levine discusses saving for retirement on ‘The Claman Countdown.’
A recent report by the trustees of the Social Security Administration suggests that, if Congress changes the law to allow for fund sharing within the health disability insurance system, the full window for completion could be extended to the third quarter of 2034. After the combined reductions in 2034, 83% of the planned benefits will be financed by the collection of continuing wages.
“Trustees recommend that lawmakers address the trust fund shortfall in a timely manner to implement the necessary reforms gradually and give employees and beneficiaries time to adjust,” the report said. “Making changes sooner rather than later will allow more generations to share in needed income increases or reduced scheduled benefits.”
READ MORE ON FOX BUSINESS
Eric Revell of FOX Business contributed to this report.
