Social Security Cuts Projected to Impact Retirees in 15 States by Over $500 Monthly Starting 2033
A recent update from the Social Security Administration (SSA) indicates that the Old-Age and Survivors Insurance (OASI) fund is projected to be depleted by the fourth quarter of 2032. Following this depletion, Social Security's income from payroll taxes will only be sufficient to fund 78% of promised benefits. This shortfall is expected to result in a 22% cut to benefits. Analysis from the Committee for a Responsible Federal Budget (CRFB) projects that a typical newly retiring dual-earning couple could lose $16,900 in annual benefits starting in 2033. The financial impact will be particularly severe in 15 states, where retirees are expected to face average monthly cuts exceeding $500. These states, which also have some of the highest average Social Security payments, include Connecticut ($556), New Jersey ($554), New Hampshire ($554), Delaware ($549), Maryland ($541), Washington ($531), Minnesota ($530), Massachusetts ($527), Michigan ($523), Utah ($523), Virginia ($522), Kansas ($520), Pennsylvania ($519)...