Social Security trust fund may run dry by 2032
Trustees say the Social Security retirement trust fund will be exhausted in the fourth quarter of 2032, after which retirement benefits would fall by 22%. The Congressional Budget Office projects the fund could run out in mid-2032, with cuts reaching 26%. A Committee for a Responsible Federal Budget estimate from June puts the average monthly loss at $500 nationwide under a 24% cut, with 29 states facing larger reductions than the national average. Analysts note the deadline may push Congress to act, though political deadlock could delay reforms.
Key facts
- The Committee for a Responsible Federal Budget published its estimate in a June report.
- Shai Akabas, of the Bipartisan Policy Center, comments on possible congressional action.
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Why it matters
Millions of retirees depend on these benefits, and the timing of any congressional response will determine how large the eventual cuts are.
What changed
First published from CNBC