Social security funds are running out, new data shows
The Old-Age and Survivors Insurance and Disability Insurance trust funds are projected to deplete their assets by 2033, as stated in the Social Security Board of Trustees’ annual 2025 report. At that time, only about 77% of scheduled benefits will be payable.
The projected depletion year for the combined Social Security trust funds is 2034, at which time only 81% of the benefits will be payable. Similarly, the Hospital Insurance fund of the Medicare program is projected to be depleted as soon as 2033.
This emerging retirement insecurity is prompting many younger Americans, particularly Millennials and Gen Z, to explore alternatives beyond conventional savings, as per reports dated April 2025.
The survey also found that 20% of respondents from Gen Z and Generation Alpha would accept their pension in whole or in part in cryptocurrency, with 78% of respondents trusting alternative retirement savings options more.
Furthermore, 60% of Gen Z and millennials plan to increase their crypto holdings, and two-thirds aim to expand their investments; over half of them already allocate retirement assets to cryptocurrencies.
With 62% of respondents intending to engage in Fidelity’s crypto-oriented IRA, the future holds a closer integration of cryptocurrency in retirement strategies.
With 21% of Americans already dedicating more savings to crypto than to conventional stocks, almost half of Americans allocate a sizable amount—10% to 20%—of their retirement money to cryptocurrencies.
However, enthusiasm for cryptocurrency hasn’t been matched by mainstream financial professionals and regulators, including the U.S. Department of Labor, which has warned against using cryptocurrency for retirement accounts, citing concerns about volatility, fraud, and valuation issues, according to Investopedia.
Retirement advisor Ric Edelman recently advised holding crypto of about 10% to 40% as a small part of a retirement portfolio.
The original article “Social security funds are running out, new data shows” first appeared on TheStreet on Jun 18, 2025.
