Social Security’s retirement trust fund is on a path to insolvency in less than a decade, which would leave retirees facing an automatic 24% cut to their benefits if the trust fund is depleted, according to a new analysis.
Social Security is funded by a combination of payroll taxes and disbursements from the trust fund, and if the trust fund is depleted, federal law requires that benefits be cut to match incoming revenues.
The nonpartisan Committee for a Responsible Federal Budget (CRFB) on Thursday released its latest analysis of Social Security’s trust fund based on the recent trustees’ report along with updated fiscal projections following the enactment of the One Big Beautiful Bill Act.
CRFB estimated that the law’s enactment moved up the insolvency timeline for Social Security’s trust fund to late 2032, which would leave beneficiaries facing a 24% benefit cut after the trust fund is tapped out.
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Author: Marty Kaufmann
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