Trump’s Social Security Chief Says Social Security Will Survive 90 More Years - But There’s a Catch

Ninety more years of Social Security sounds like reassuring news, especially when you're relying on those monthly checks to help pay your bills in retirement. That's the promise Social Security Commissioner Frank Bisignano recently made, giving retirees plenty of reason to feel optimistic about the program's future.

But the program's own trustees have issued a much more concerning forecast, warning that the retirement trust fund could run out of reserves in 2032. Both statements can be true, and understanding why could help you make the right moves with the retirement income you're counting on.

What the commissioner said about Social Security's future

During an October interview with CNBC, Social Security Commissioner Frank Bisignano spoke positively about the program's future. "It's 90 years old. It'll be around for another 90 years," he said.

Bisignano also pointed to President Trump's promise to "protect and preserve" Social Security, saying he was committed to doing just that. He talked about improvements to customer service and technology, and when asked whether the retirement age might eventually increase, acknowledged that there "will always be questions."

His comments offered some reassurance, although he didn't explain how Social Security would continue paying full benefits given the funding problems its own trustees have warned about.

The difference between keeping Social Security and full benefits

Social Security relies mainly on payroll taxes from people who are still working to pay benefits to today's retirees. Those taxes will continue coming in after 2032, allowing the program to keep sending monthly checks even if its trust fund runs out of reserves.

The problem is that Social Security currently pays out more in benefits than it collects in taxes, so it's been drawing on its reserves to cover the difference. Once that money runs out, incoming revenue alone wouldn't be enough to pay everyone their full benefits.

For retirees, that means there's a difference between what Social Security promises to pay and what it can afford to pay. Under the trustees' projections, those amounts could no longer match starting in 2032 unless Congress makes changes.

What could happen to your Social Security check in 2032

If Social Security's retirement trust fund runs out of reserves in 2032, there would still be enough money coming in to pay about 78% of scheduled benefits. That means your monthly check wouldn't disappear, although you could lose roughly 22% of it if Congress doesn't step in.

The Congressional Budget Office has offered a less optimistic forecast, estimating that cuts could average around 28% in the first years after the reserves run out. Exactly how those reductions would be handled is still uncertain, since there's no clear legal process for dealing with a shortfall.

The good news is that Congress still has time to address the problem before retirees face smaller checks. For now, these cuts are a possibility rather than a certainty, and there's still a chance they could be avoided altogether.

A 22% cut could cost the average retiree nearly $480 a month

The average retired worker is expected to receive about $2,170 a month in 2027. A 22% reduction would bring that down to roughly $1,693, leaving you with $477 less each month, or about $5,730 a year.

For couples who both collect Social Security, the loss could be even harder to deal with. The Bipartisan Policy Center estimates that a couple receiving two average retirement benefits could lose around $10,600 a year under a 22% cut.

Your actual benefit in 2032 will depend on future COLAs and what Congress decides, but you can get a sense of how a cut might affect you by trying to balance your retirement budget with 20% less Social Security income. If the numbers don't quite work, building up your savings now could help you prepare for that possibility.

Retirees in their 60s could be affected by the 2032 shortfall

The projected Social Security cuts could affect people who are already retired, not just those who haven't started collecting benefits. According to the Bipartisan Policy Center, both current and future recipients could face smaller checks if the trust fund runs out of reserves in 2032 and Congress doesn't act.

If you're 65 today, you'll be about 71 or 72 when that happens, and Social Security may be covering much of your everyday expenses. Making up for lost income could be difficult, especially if you've been retired for years and returning to work isn't realistic.

With only a few years until 2032, retirees have less time to build up their savings or find other ways to cover a possible shortfall.

Bottom line

Social Security isn't going anywhere, so there's some comfort in Bisignano's promise. But whether retirees will continue receiving their full benefits after 2032 depends on what Congress does to address the funding shortfall.

In the meantime, finding ways to free up your retirement budget could help you put a little more money aside. You don't need to make drastic changes, but building up your savings now could make a smaller Social Security check easier to deal with.

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