Social Security may cut benefits $500 monthly by 2032

Americans receiving Social Security retirement benefits could see their monthly checks reduced by an average of $500 starting in late 2032 if Congress does not act to address the program’s funding shortfall, according to a new analysis. The projected 24 percent across-the-board cut would be triggered automatically upon the exhaustion of the program’s retirement trust fund, which is currently projected to occur within the next seven years.

The analysis, conducted by the nonpartisan Committee for a Responsible Federal Budget, estimates the impact would vary significantly by state. Retirees in Connecticut would face the largest average monthly reduction at $556, followed by those in New Jersey, New Hampshire, Delaware, and Maryland, where cuts would exceed $540. At the lower end, beneficiaries in Mississippi would see an average reduction of $459 per month. In total, 29 states would experience average monthly cuts above $500.

The report emphasizes that no state would be spared, with the reductions directly affecting over 15 percent of the population in 47 states. In eight states—Maine, West Virginia, Vermont, Delaware, Montana, New Hampshire, South Carolina, and Wisconsin—more than...