MW 'I watch antenna TV': I'm 66. Will I lose my disability benefits if Social Security goes belly up?

By Quentin Fottrell

'I read that the Social Security Disability Insurance Trust Fund is good until 2099'

"I only give one gift a year these days. Gotta keep the chiropractor happy!" (Photo subject is a model.)

Dear Quentin,

I am 66 and have been on Social Security Disability Insurance (SSDI) for decades after breaking my back. I read that even though the Social Security Retirement fund may go belly up in my lifetime, the Social Security Disability Insurance (DI) Trust Fund is good until 2099. This is assuming those on retirement don't swarm the disability fund when they need the money. Has anyone even considered that potential nightmare for all concerned?

I read last month that when I reach 66 and 10 months, more or less, my disability will automatically be switched to retirement, at the same payment I currently get. Is this true? If so, and retirement benefits are reduced in the future, will they switch me back to disability for full benefits? Or will I have to go through the same multiple applications and appeals, and hire a lawyer to get back on disability? I don't expect to live until 2099, but I may squeak out seven to 10 years more.

After all this time having to subsist on Social Security, even with my annual COLA increases, coupled with even higher-percentage annual increases in Medicare premiums and deductibles, I've lost acres of ground in spending power. They claim to calculate COLA including things like vacations, entertainment, dining out, new clothes, shoes, gifts and such. I have taken one vacation in 17 years, to get cataract surgery. I stocked up on outlet-store superclearance shoes during said vacation. My new clothes come from thrift stores. I've dined out once in over a decade if you don't count Sonic cheese sticks and a soda. At $20 including tip, no more Sonic.

I watch antenna TV and limited data on my free government-refurbished cellphone. I only give one gift a year these days. Gotta keep the chiropractor happy! If only they'd calculate COLA on realistic expenses. This old gal needs a real raise. Your insight into these muddy waters would be greatly appreciated.

Too Broke To Beg

Don't miss: 'He forced me to take Social Security at 62': My husband inherited millions, but never gave me a penny. If I divorce him, would I get any of it?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter.

Once you reach the FRA for Social Security, your benefits are paid out of the OASI fund, should the fund be insufficient to pay full benefits, which is projected to happen in 2033.

Dear Broke,

You have one thing in your favor: your fighting spirit and sense of humor.

It won't go belly up completely. Social Security's financial security does continue to be a matter of fierce debate and political wrangling; its demise may or may not be exaggerated. The program's trust fund is projected to run out by 2033, according to estimates published in the 2025 Social Security Trustees Report. It is up to Congress to act. On the one hand, this is out of your control. On the other, you are reliant on these payments to meet your day-to-day expenses, so I understand your concern.

The Old-Age and Survivors Insurance $(OASI)$ Trust Fund pays monthly Social Security retirement benefits to eligible retired workers and their families. Eligibility requires a sufficient work history and earned work credits, typically 40 credits, or about 10 years of work. The Social Security Disability Insurance (SSDI) program is a federal, payroll-tax-funded insurance that provides cash benefits to disabled workers and their eligible dependents. Both OASI and SSDI are funded primarily through payroll taxes under the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA), which also support benefits for retirees, disabled workers, and their survivors.

You are correct. The Social Security Disability Insurance (DI) Trust Fund is good until 2099, but you are not completely in the clear. Once you reach the Full Retirement Age for Social Security, your benefits are paid out of the OASI fund. It's projected that the OASI fund will be insufficient to pay full benefits in 2033. So you may be impacted when the time comes, says Richard Johnson, senior fellow at the Urban Institute, a nonprofit economic and social research organization in Washington, D.C.

If Congress does not act, the combined reserves of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds are only projected to have enough revenue to pay all scheduled benefits and associated administrative costs until 2034, with 81% of benefits payable at that time, per the Social Security Board of Trustees' annual report. Although the Social Security Administration is a separate legal entity, Frank Bisignano, commissioner of the SSA, said the financial status of the trust funds are a top priority for the Trump administration.

Social Security has gotten close to running out of money before, in the early 1980s, but Congress acted at the 11th hour to fix it.

What are the chances of this happening? It depends on who you ask. The Committee for a Responsible Federal Budget, a nonpartisan, nonprofit organization, says Social Security is racing towards insolvency. (Or racing against insolvency, depending on your interpretation.) It says the One Big Beautiful Bill Act reduced revenue flowing into the Social Security trust fund. "In June, we estimated this would accelerate insolvency of the retirement program from 2033 to 2032." Social Security Chief Actuary Karen Glenn recently confirmed this finding, it adds.

"Under the law, the Social Security program cannot pay out more in benefits than it has collected in revenue (plus accrued interest)," the organization adds. "As a result, all current and new retired beneficiaries, regardless of age or income, will face an across-the-board 24% benefit cut when the retirement trust fund is depleted in 2032. Based on the latest chief actuary projections, we estimate a typical couple retiring shortly after the trust fund runs out will face an $18,400 benefit cut." You can read more here.

Social Security has gotten close to running out of money before, in the early 1980s, but Congress acted at the 11th hour to fix it. That might happen again this time. There are many suggestions floating around Washington on how to fix the program's funding issues, including raising the payroll tax, eliminating the income cap on high earners or adjusting the types of benefits offered. Congress has never let Social Security fail, and it likely won't again - we'll just have to wait (and hope) for actual solutions.

Your concerns about inflation are not unfounded. The Social Security Administration said that the 2025 cost-of-living adjustment $(COLA)$ is 2.5%. The annual COLA over the past two decades has averaged at about 2.6% per year, according to the Association of Mature American Citizens, a conservative advocacy group. "The problem is that 'normal' doesn't actually keep up with inflation that those of us on Social Security deal with every day and many beneficiaries don't even see the full COLA increase, making their life increasingly difficult," AMAC says.

You've gotten this far, which is no small feat. Keep thrifting and living your best life.

Related: 'I want to live in a place that I can enjoy': I'm 69, single and get $3,000 in Social Security. Can I afford $2,000 rent?

The Moneyist regrets he cannot reply to questions individually.

More columns from Quentin Fottrell:

'I thought she was honest': My ex-wife hid stocks during our divorce. Can I sue her?

My wife and I are in our 40s. We have a $600K mortgage and $500K income. Can we afford a vacation home?

'I won't let the government walk all over me': The IRS says I owe $14,000 for not declaring my Social Security. What now?

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-Quentin Fottrell

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October 18, 2025 09:16 ET (13:16 GMT)

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