A new analysis puts a dollar figure on Social Security’s looming shortfall: roughly $500 less per month for the typical retiree starting in 2032. That’s the average 24% cut projected by the Committee for a Responsible Federal Budget if the program’s main retirement trust fund runs out as expected at the end of that year and Congress does nothing, CBS News reports. The CRFB’s report warns of the “potentially devastating effects of insolvency.”
- The hit wouldn’t stop payments altogether—ongoing payroll taxes would still cover about 77% of promised benefits—but it would touch 10% to 23% of residents in every state. Maine, which has the highest proportion of people over 50, would have the highest share of affected residents, while Connecticut, New Jersey, and New Hampshire are among those facing the steepest average reductions, around $550 a month.
