A funding shortfall could force a 24% cut in Social Security retirement benefits within a decade, affecting 63 million Americans.
Social Security retirement benefits face a 24% reduction by 2032 if lawmakers fail to address a funding shortfall in the program’s trust fund. The projected cut translates to an average monthly loss of $500 for beneficiaries, according to a nonpartisan fiscal policy report.
The trust fund supporting retirement benefits is on track to become insolvent by 2032, less than seven years from now. Updated projections are expected later this month. Social Security currently serves 63 million people, including retirees, survivors, and dependents, representing roughly one-fifth of the U.S. population.
Without intervention, the reduction would impact all states, though some would face steeper cuts than others. The report highlights the urgency of legislative action to prevent widespread benefit reductions.