Your Social Security check could be cut by $500 a month in 2032, report finds
CBS News • • business
Key Points:
- Social Security's retirement trust fund is projected to become insolvent by the end of 2032, potentially leading to an average monthly benefit cut of about $500, or 24%, for millions of Americans.
- The trust fund currently covers the gap between Social Security’s income and benefit payments, but once depleted, benefits would be automatically reduced unless Congress intervenes.
- The impact of benefit reductions would affect 10% to 23% of each state's population, with states like Connecticut, Delaware, and New Jersey facing the largest average cuts.
- Even after insolvency, Social Security would continue paying benefits at a reduced level based on payroll tax revenue, rather than stopping payments entirely.
- Policymakers may need to consider reforms such as removing the payroll tax income cap to address the program’s funding shortfall and prevent drastic benefit cuts.