Here's Exactly How We Fixed Social Security the Last Time It Was Running Out of Money
Yahoo Finance ·
Social Security isn't exactly in the best financial situation. Although it ended 2025 with nearly $2.6 trillion in reserves, the program is running a rapidly widening deficit. According to the latest projections, Social Security's trust fund reserves are expected to be depleted in 2032. If no action is taken, across-the-board benefit cuts would be necessary. The good news is that history tells us that something will be done. It would absolutely make things easier in the long term if solutions were put in place while we're still years away from depletion, but that isn't strictly necessary. In fact, the last time Social Security was in danger of running out of money, a ninth-inning solution is exactly what happened. In 1983, Social Security's trust fund was rapidly declining and was just a few months away from being unable to pay all of its promised benefits . This created the political urgency to get a deal done, and after some back-and-forth negotiations, the Republican administration and Democratic leaders in Congress reached an agreement. This led to the 1983 Social Security Amendments being signed into law by President Ronald Reagan, which made the following changes:
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