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Social Security Administration Commissioner Frank Bisignano said in an interview Monday that the benefit program will exist for another 90 years as a key trust fund nears insolvency.
Bisignano, who is also CEO of the IRS, spoke with CNBC’s “Squawk Box” ahead of this week’s announcement of the 2027 cost of living adjustment (COLA) for Social Security benefits following the latest inflation data.
As SSA commissioner, Bisignano is one of the trustees of the Social Security trust funds. He was asked about potential reforms to the program to ensure its future solvency and said he expects the program to continue into the future.
“It’s a long journey. It’s 90 years old and will last another 90 years. The president promised to protect and preserve and that’s what we’re doing,” Bisignano said.
SOCIAL SECURITY BENEFICIARIES COULD BENEFIT FROM A GREATER INCREASE IN BENEFITS IN 2027
Social Security Administration Commissioner Frank Bisignano predicted the benefit program would exist for another 90 years despite financial challenges. (Mandel Ngan/AFP via Getty Images)
“We have a trust fund, so they have trustees, of which I am one. We have a president who is committed to it and lives by ‘protect and preserve’ and has given me a mandate to do so,” he said.
“At the end of the day, it’s going to be the White House, Congress and the administrators. But the job, when you have 30 million erroneous records, is to fix the place,” Bisignano added, explaining that the SSA has cleaned up about 10 percent of the erroneous records from the Social Security file.
Bisignano was asked about reforms to shore up Social Security’s finances, such as raising the retirement age, and he acknowledged that “there will always be questions” but chose not to discuss possible changes to benefits or the taxes that fund them.
MAIN SOCIAL SECURITY TRUST FUND AT RISK OF DEPLETION IN 2032, TRIGGERING BENEFIT REDUCTIONS
The main Social Security trust fund is expected to become insolvent in 2032, leading to automatic benefit cuts. (Getty Images/stock)
Social Security was established in 1935 and began operating in 1937, but in the decades since, it has come under financial pressure due to the changing demographics of the U.S. population.
The trustees’ most recent report projects that Social Security’s main trust fund will be depleted in 2032, which would result in an automatic reduction in benefits for beneficiaries.
Once the Social Security trust fund becomes insolvent, the program is required by law to reduce benefits to match incoming payroll tax revenue. Based on the trustees’ estimate, Social Security would only be able to pay 78% of scheduled benefits at the end of 2032, which would amount to an estimated benefit reduction of 22%.
A SINGLE TYPE OF SOCIAL SECURITY ADJUSTMENT COULD CUT THE 75-YEAR-OLD DEFICIT BY HALF
Social Security finances have been strained by the growing number of retirees compared to workers paying into the program. (Marc Félix/The Washington Post)
Estimates of the extent of the benefit reduction vary. The nonpartisan Congressional Budget Office (CBO) projects that benefits would be reduced by an average of 28% per year from 2033 to 2036. The CBO analysis noted that the benefit reduction process is not outlined in federal law and that various methods would have varying implications for the economy and the federal budget.
The Committee for a Responsible Federal Budget (CRFB), a nonpartisan think tank, previously estimated a 24% benefit reduction, which would mean a typical 60-year-old couple retiring at the time of insolvency would face an $18,400 reduction in their annual benefits.
Social Security’s finances have deteriorated in recent decades as the share of workers relative to retirees receiving benefits from the welfare program has declined.
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SSA data show that the ratio of covered workers to Social Security beneficiaries declined over time, from 41.9 in 1945 to 16.5 in 1950, 5.1 in 1960, four in 1965 and fell below three for the first time in 2010.
The aging of the U.S. population has also contributed to an increase in federal spending on Social Security, which is the largest government program and saw spending increase by 5% in the federal government’s 2026 fiscal year.
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