The United States national debt surpassed $40 trillion this month amid growing concerns over Social Security’s financial health. Some of the wealthiest Baby Boomers are receiving over $100,000 annually in combined Social Security benefits, while the program is projected to become insolvent by 2032, according to fortune.com.
The Congressional Budget Office projected in 2023 that federal spending on Social Security and Medicare will account for 81% of the increase in mandatory spending between 2023 and 2033. In 2026 alone, nearly half of the $362 billion increase in mandatory outlays is attributed to these programs. Additionally, net federal interest costs are expected to exceed $1 trillion this year, rising to $2.1 trillion by 2036, adding to the debt burden.
This financial strain has contributed to differing generational perspectives on Social Security’s future. A December 2025 Cato Institute survey found only 34% of Gen Z respondents believe Social Security will exist when they retire. Furthermore, a June 2026 Cato analysis revealed that 79% of younger respondents expect cuts to their future benefits, highlighting widespread concern about the program’s sustainability.
The growing debt and entitlement spending pressures underscore the urgency of addressing Social Security’s funding challenges. The Congressional Budget Office’s projections emphasize that without reforms, the program’s insolvency by 2032 will affect millions of future retirees.