Social Security benefits could face 24% cut by 2032 if trust fund is depleted
By
, USA TODAY
Baker's choice. Dense with flavour, light on filler.
Summary
Social Security's retirement trust fund is projected to be depleted by 2032, which would trigger an automatic 24% reduction in benefits — averaging a $500 monthly cut per beneficiary. The program has been running a deficit for 16 years, spending more on benefits than it collects from payroll taxes. Without Congressional action to address the funding shortfall, millions of retirees face significant income loss.
Key quotes
· 4 pulledSocial Security beneficiaries will lose an average of $500 per month in benefits if the program's trust fund is depleted in less than seven years, as predicted, according to a new analysis.
For the last 16 years, the cost of Social Security's retirement program has exceeded the amount it receives from taxes collected from paychecks, forcing it to dip into its trust fund reserves to cover the shortfall.
Without any changes, that retirement trust fund will be exhausted in 2032, according to the the Social Security Trustees.
At that point, everyone's benefits could see a 24% decline, the Committee
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