Social Security benefit cuts could average $500 a month for retirees if trust fund runs dry, report finds
A report warns that Social Security benefits could be cut by an average of $500 a month for retirees if the trust fund becomes insolvent. The Committee for a Responsible Federal Budget emphasizes the urgency for policymakers to make changes to the program before the projected insolvency in 2032. The report highlights that no state will be immune to the effects of this potential crisis, particularly as the population aged 50 and over continues to grow.
- ▪The Social Security trust fund is projected to be insolvent in less than seven years.
- ▪If insolvency occurs, retirees could see average benefit cuts of $500 per month.
- ▪36.3% of the U.S. population is currently over age 50, with 29 states having older populations than the national average.
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"No state would be spared from the potentially devastating effects of insolvency," the Committee for a Responsible Federal Budget said in the report. "With less than seven years until Social Security is projected to be insolvent, policymakers need to enact changes to the program as quickly as possible to protect against these scenarios."CFRB's report is based on 2024 Social Security Administration data on beneficiaries and 2024 state GDP data from the Bureau of Economic Analysis. If insolvency is reached in 2032, the effects may differ based on changing demographic and economic trends, according to CRFB.Social Security's looming depletion dates come as the population of individuals ages 50 and over is growing, according to a new AARP report on longevity.
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