New Social Security outlook reveals how much checks will have to fall
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Social Security’s retirement fund is set to run short in just seven years — which could end up slashing benefits for millions of Americans by thousands of dollars a year.
According to latest projections, retirees could face automatic 24 percent benefit cuts as early as the end of 2032
This means a couple who both worked would receive $18,100 less each year if they retire at the start of 2033.
The new forecast from the nonpartisan Committee for a Responsible Federal Budget (CRFB), released Thursday, moves up the insolvency date for both Social Security and Medicare trust funds.
A projection just last month had funds lasting until 2033, but that has already been revised. A major factor is the impact of President Donald Trump’s ‘Big, Beautiful Bill‘, which experts warned would speed up the use of funds.
Social Security relies on its trust fund to provide monthly benefit checks to around 70 million Americans.
Once the reserves are exhausted, federal law requires that benefits be cut to match incoming revenues.
This means payments will continue, but at reduced levels. The cuts would also grow over time as scheduled benefits continue to outpace dedicated revenues, the CRFB said.