What the 2025 Social Security Trustees Report Means for Your Clients

The 2025 Trustees Report on the financial status of Social Security was released last week, and its findings carry significant implications for retirement planners, financial advisors, and insurance professionals. As an NSSA® certificate holder, your role as a trusted resource is more important than ever. Here’s what you need to know—and what your clients need to understand.

The Trust Fund Timeline Has Shortened

One of the most pressing takeaways is that the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds are now projected to be depleted by 2034, one year earlier than reported in 2024. The OASI Trust Fund alone is expected to run out in 2033. When that happens, unless Congress intervenes, incoming payroll taxes will only be enough to pay about 81% of scheduled benefits—and just 77% for OASI alone. This makes it more urgent than ever to help clients stress-test their retirement plans under reduced benefit scenarios.

Big News for Those Previously Affected by WEP and GPO

The Social Security Fairness Act of 2023, enacted in January 2025, repealed both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). This is a game-changing development for clients who have worked in jobs not covered by Social Security, such as educators, police officers, and other public servants. For many of these individuals, benefits will increase substantially. Now is the time to revisit past claiming strategies that were constrained by WEP or GPO and reassess what’s possible under the new rules.

Spending Continues to Outpace Income

Social Security has been paying out more than it brings in (excluding interest) since 2010, and since 2021, even interest income hasn’t closed the gap. In 2024 alone, trust fund reserves declined by $67 billion, finishing the year at $2.72 trillion. As reserves shrink year-over-year, the system moves closer to being unable to fulfill its promises. Your clients should understand that while the program is not “going bankrupt,” benefits will not be fully payable without reform.

The Financial Hole Is Getting Deeper

This year’s report estimates a 75-year actuarial deficit of 3.82% of taxable payroll, up from 3.50% in last year’s report. That translates to an unfunded liability of $25.1 trillion in today’s dollars. Fixing that gap would require one of three things: (1) raising the payroll tax rate from 12.4% to 16.05%, (2) reducing all benefits by 22.4%, or (3) implementing some mix of the two. Waiting until 2034 to act makes the medicine harder to swallow—delayed action would require a tax hike to 16.67% or a benefit cut of 25.8%.

DI Trust Fund Stays Solvent—but Don’t Let It Distract You

The DI Trust Fund remains on solid footing, with no projected depletion through 2099. However, this should not be taken as a sign of system-wide strength. The DI program has benefitted from historically low application and award rates since 2010. While it's a bright spot in the report, it does little to resolve the more immediate challenges facing the OASI fund.

Fewer Workers, More Beneficiaries

The long-term trend of fewer workers supporting more retirees continues to erode the program’s financial foundation. In 2024, there were about 2.7 workers per beneficiary. That ratio is expected to drop to 2.3 by 2040. Combined with extended life expectancies and lower fertility rates, the demographic math simply doesn’t support the current benefit structure over the long term.

What Should NSSA® Professionals Do?

As an NSSA®-designated advisor, you are uniquely positioned to help clients navigate this uncertain future. Here are several action steps to take now:

• Reassess clients impacted by WEP/GPO to determine how the repeal affects their eligibility and income.

• Model retirement scenarios that assume 75–80% of projected Social Security benefits.

• Communicate early and often with clients about legislative risks and planning flexibility.

• Reinforce the value of diversified retirement income and Social Security optimization.

• Track legislative proposals using tools like the SSA Solvency Options, and stay ready to adjust client plans when changes occur.

Social Security remains a foundational element of most Americans’ retirement plans. Your clients rely on you not just for answers, but for clarity amid complexity. Use your NSSA® designation to deliver that clarity—and help them build retirement plans that are resilient, responsive, and informed.