Social Security supports over 70 million Americans, providing benefits to retirees, people with disabilities, and survivors. Yet concerns continue to grow about whether the system will run out of money in the coming decades.
According to the latest Social Security Trustees report, the combined trust funds could be depleted by the mid-2030s if Congress takes no action. Many worry about what that means for their retirement or disability income—and whether legal action could be an option.
In this article, you’ll learn what happens if Social Security funds run low, whether citizens can sue the government, and what realistic steps Congress and individuals can take to protect benefits.
Understanding How Social Security Funding Works
Social Security is funded mainly through payroll taxes collected under the Federal Insurance Contributions Act (FICA). Every worker and employer pays 6.2% of wages, while self-employed individuals pay 12.4%. This money goes into two trust funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. These trust funds pay benefits to retirees, disabled workers, and surviving family members.
When more money flows in than out, the surplus is invested in special-issue U.S. Treasury securities. But since 2021, benefit payments have exceeded tax revenue, causing the trust funds to gradually draw down their reserves. Current projections estimate that if nothing changes, the OASI fund could run out by 2033, leaving only about 77% of benefits payable through ongoing payroll taxes.
What “Running Out of Money” Really Means
The phrase “Social Security running out of money” can sound alarming, but it doesn’t mean benefits will disappear. It means the trust funds’ reserves will be depleted, forcing the program to rely solely on incoming payroll tax revenue. That revenue still covers most—but not all—of scheduled benefits.
In practical terms, beneficiaries could see an across-the-board cut of around 20% to 25% if Congress fails to act. For example, a retiree who now receives $2,000 per month might receive only $1,500 to $1,600. Those cuts would hit lower-income retirees and people with disabilities hardest.
Could You Sue the Government If Social Security Runs Out?
This is the question that many Americans ask—and the legal answer is complicated. The short version: you cannot successfully sue the federal government just because Social Security trust funds run out or benefits are reduced.
Here’s why. Under U.S. law, Social Security benefits are not considered a contractual right. The Supreme Court clarified this in the 1960 case Flemming v. Nestor. The Court ruled that Congress can modify, reduce, or even eliminate Social Security benefits through legislation. That means while you have a statutory entitlement to payments as long as the current law provides them, you don’t have a constitutional or property right guaranteeing full benefits forever.
In essence, the Social Security Act gives you the right to benefits under the law as it exists at the time you claim them—but if Congress changes the law, your benefits can change too. That’s why a lawsuit over reduced payments or fund depletion would almost certainly fail in court.
Legal Precedent: Flemming v. Nestor (1960)
To understand the limits of lawsuits, it helps to revisit Flemming v. Nestor. Ephram Nestor, a U.S. resident who had contributed to Social Security for years, was deported under the Communist Control Act. His benefits were terminated, and he sued the government, claiming that since he paid into the system, his benefits were a guaranteed right.
The Supreme Court disagreed. It ruled that Social Security is not a private pension or savings plan. Contributions are taxes, not deposits in a personal account, and Congress retains authority to alter or terminate benefits. This case still governs today.
So even if the trust funds become insolvent, individuals cannot sue the government for failing to pay the full amount of promised benefits.
Why Lawsuits Would Fail: Sovereign Immunity and Legislative Authority
Two major legal barriers prevent lawsuits over Social Security insolvency:
- Sovereign Immunity – The U.S. government cannot be sued without its consent. While the government has waived immunity for certain claims, Social Security funding disputes are not among them.
- Legislative Control – Only Congress can authorize changes to Social Security taxes or benefits. Courts cannot order Congress to appropriate funds or rewrite Social Security law.
Even if a case reached the courts, judges would defer to Congress’s authority under the Constitution’s “power of the purse.”
What Would Actually Happen If the Trust Fund Runs Out
If the trust funds are depleted, the Social Security Administration (SSA) would still collect payroll taxes daily. Those taxes would immediately go toward paying benefits. However, since income would cover only about three-quarters of scheduled payments, SSA would need to reduce monthly checks unless Congress acts.
That reduction would be automatic—SSA cannot legally borrow money or run a deficit. By law, it can only pay benefits from the trust funds’ balances and ongoing revenue.
Congress Has the Power to Fix It
While individuals cannot sue to force payments, Congress can—and likely will—act before the trust funds run out. Historically, lawmakers have stepped in to reform Social Security whenever its solvency was threatened.
In 1983, for example, Congress passed a bipartisan reform that gradually raised the retirement age and increased payroll taxes. That legislation extended the program’s solvency for decades. Similar solutions could be enacted again, such as:
- Gradually raising the payroll tax rate or income cap
- Adjusting benefits for higher-income earners
- Modifying the cost-of-living formula
- Increasing the full retirement age
Each of these options would help stabilize the program without eliminating it.
The Impact on Retirees and Disabled Americans
If Congress delays action, millions of older adults and people with disabilities could face hardship. According to the Urban Institute, nearly 40% of older Americans would fall into poverty without Social Security. For many, it’s their only steady income source.
People with disabilities would also be hit hard. The Social Security Disability Insurance (SSDI) program helps roughly 9 million workers and dependents. Without adequate funding, those benefits could drop by hundreds of dollars a month.
For retirees living on fixed incomes, even a 20% reduction could force difficult choices between rent, medication, and groceries.
What Individuals Can Do to Prepare
While you can’t sue the government, you can take steps to protect your financial future. Building personal savings, contributing to employer-sponsored retirement plans, and minimizing debt are all practical moves. Consider:
- Diversifying income sources: Relying solely on Social Security is risky.
- Working a bit longer: Delaying retirement increases your monthly benefit.
- Reviewing your SSA statement: It shows your estimated benefit and earnings record.
- Exploring private disability insurance: For workers, this adds protection beyond SSDI.
Financial planners often recommend saving enough to replace at least 70% of pre-retirement income through savings, investments, and Social Security combined.
Common Myths About Social Security Insolvency
It’s easy to panic when headlines suggest Social Security will “run out.” Here are some clarifications:
- Myth: Social Security will vanish in 2033.
Fact: Payroll taxes will still fund around 77% of benefits even if the trust funds are depleted. - Myth: Younger workers will get nothing.
Fact: They’ll likely receive reduced benefits unless reforms occur. - Myth: Congress can’t fix it.
Fact: Congress has multiple policy options and has acted before to preserve the system.
Political and Public Pressure Matter
While individuals can’t sue, they can exert political pressure. Lawmakers respond to public concern—especially from older voters. Advocacy groups like AARP and the National Committee to Preserve Social Security and Medicare frequently lobby for long-term reforms.
Voting, contacting representatives, and participating in policy discussions are more effective than legal action in shaping the program’s future.
Could Class-Action Lawsuits Ever Work?
Some wonder if a large group of beneficiaries could file a class-action lawsuit claiming constitutional violations if benefits are cut. Historically, such suits have failed. Courts consistently cite Flemming v. Nestor and uphold Congress’s authority. Even during major benefit adjustments in the 1980s and 1990s, courts dismissed similar challenges.
Unless Congress explicitly guarantees benefits in a legally binding contract—which it has not—no class-action claim could succeed.
A Look at the Numbers: The 2025 Outlook
As of 2025, the Social Security Administration projects that the OASI trust fund will be exhausted by 2033 and the combined OASDI funds by 2035. That’s just about ten years away. Without reform, a 23% automatic cut would occur.
Yet it’s important to note that Congress rarely allows major benefit disruptions. Political will and public opinion almost guarantee that reforms will happen before full insolvency.
Preparing for a Realistic Future
No one wants to see Social Security face cuts, but realism helps. The program was designed during the Great Depression, when life expectancy was shorter and the worker-to-retiree ratio was higher. In 1960, there were roughly five workers for every retiree; today there are only about 2.7.
That demographic shift strains the system. Reforming it doesn’t mean destroying it—it means updating it to fit a modern economy with longer lifespans and changing work patterns.
So, Can You Sue If Social Security Runs Out?
In short: no, you can’t. But you can demand accountability through Congress, elections, and public advocacy. The law doesn’t give individuals a right to sue over benefit cuts, but it does give them the power to shape legislation.
Your voice, not your lawsuit, is what can help secure Social Security’s future.
Final Thoughts
The fear of Social Security “running out” is understandable, but not the full story. Even if the trust funds run dry, benefits will continue—though possibly reduced—until Congress acts. No lawsuit can change that reality. What can change it is civic pressure, timely reforms, and personal financial preparation.
Social Security remains one of America’s strongest social safety nets. Keeping it strong requires political will and public awareness, not courtroom battles.
