What the 2025 Trustees Report Really Means for Your Clients' Retirement Plans

Each year, the Social Security Trustees Report provides a snapshot of the health of the trust funds that support benefits for millions of Americans. The 2025 Social Security Trustees Report, just released, offers a mix of reassurance and urgency—and it's essential that we, as financial advisors, help clients interpret the headlines correctly.

Let’s break it down.

No Change to OASI Depletion Date, But Clocks Are Ticking

The report confirms that the Old-Age and Survivors Insurance (OASI) Trust Fund is projected to pay 100% of scheduled benefits through 2033—unchanged from last year’s estimate. That’s the good news.

However, starting in 2033, the fund’s reserves are expected to be depleted, and incoming payroll taxes will cover only 77% of scheduled benefits. While the year hasn't changed, the urgency has increased in a subtle but meaningful way: both the OASI and the combined OASDI (Old-Age, Survivors, and Disability Insurance) depletion dates have moved up by about three calendar quarters relative to last year's projections.

What does that mean for your clients? Quite simply: time is running out faster than anticipated.

It’s Not Time to Panic—but It Is Time to Plan

It’s important to remind clients that Social Security is not “going broke.” Even if Congress takes no action before 2033, the program will still be able to pay more than three-quarters of scheduled benefits.

However, as planners, we know that uncertainty is the enemy of confidence in retirement. Your clients are watching the headlines. Some are concerned about claiming early “before the money runs out.” Others are confused about what these projections really mean for them. This is where your guidance becomes critical.

Modeling Potential Changes with Confidence

Now more than ever, it’s essential to help clients understand what the Trustees Report does, and doesn’t, say about the future of their retirement income. We don’t need to guess whether benefits will be cut; we can model scenarios that prepare them for the full range of possibilities.

In our Social Security Timing^® software, for example, we’ve made it simple to compare claiming strategies under current law and under potential benefit reduction scenarios, including the 77% payout the Trustees are still projecting for 2033 if no legislative fix is made.  Just as important, you can change the default cut to a test the impact of other percentage cuts.  This may be an especially impactful conversation for higher wage earners concerned about disproportionate impacts.  

This gives clients clarity. It helps them understand the potential impact on their plans—even when the headlines feel uncertain.

Helping Clients Navigate the Future

The annual Trustees Report shouldn’t spark fear; it should serve as a reminder of the importance of building flexible, well-informed retirement income strategies. Advisors who take a proactive approach and leverage tools like Social Security Timing® and Tax Clarity®, available individually or bundled as our  Essentials Add-on, can confidently model potential outcomes and guide clients through uncertainty. This kind of forward-thinking planning not only delivers more value to clients, it helps advisors stand out in an increasingly competitive field.

Our mission at Covisum is to equip you with those tools. Together, we can help more people retire with clarity, confidence, and a plan for whatever the future brings.