Social Security could run out of money in just 6 years — even sooner than originally feared

MarketWatch

by Jessica Hall

February 14, 2026

AI-Generated Deep Dive Summary

Social Security, a cornerstone of financial safety net for millions of Americans, is facing an unprecedented challenge. Recent reports suggest that the program could deplete its trust funds as early as 2031, six years earlier than previously projected. This alarming timeline is driven by two major factors: heightened inflation and reduced income taxes on benefits. These changes have created a financial strain, accelerating the depletion of Social Security’s reserves. Higher inflation has significantly increased day-to-day expenses for retirees, leading to higher payouts from the program. At the same time, lower income taxes on Social Security benefits mean the government is collecting less revenue to sustain the system. This combination is causing the trust funds to dwindle faster than anticipated, leaving policymakers with urgent decisions to make. The implications of this financial crisis are profound for both current and future retirees. If the trust funds run out, beneficiaries may face significant cuts in their payments. This situation underscores the critical need for reforms to ensure the long-term viability of Social Security, such as adjusting benefit formulas, raising the retirement age, or increasing contributions from higher earners. For those following financial news, this issue highlights the importance of understanding how economic factors can impact public programs. The potential unraveling of Social Security not only affects individual retirees but also has broader implications for the U.S. economy and its ability to support aging populations. This matter is particularly relevant for readers interested in finance and policy, as it raises questions about the sustainability of social safety nets in an era of rising costs and changing demographics. The urgency of addressing Social Security’s financial challenges cannot be overstated, making this a key issue to monitor in the coming years.

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Originally published on MarketWatch on 2/14/2026