I understand that the news today may not be what you wanted to hear, but it is crucial information. If you or someone you love depends on Social Security to get by, there’s some unsettling information you need to know. Experts are now warning that drastic changes could be coming to Social Security, and not the kind you welcome. We’re talking about involuntary cuts that could lower your yearly payouts by as much as $24,000.
Let’s walk through what’s going on, why it’s going on, and how it could affect you—especially if you’re planning to retire or are already retired and collecting benefits.
What’s going on with Social Security?
So this is the thing: Social Security is financed to a large degree by payroll taxes—the cash withheld from your pay cheque every month if you’re employed. To that, the program adds something referred to as the Social Security Trust Fund. It’s akin to a savings account that helps cover benefits when there’s a gap between what’s collected and what’s due.
Here is some Social Security news that you should pay attention to:
- How do I change or correct my name on my Social Security number card?
- Trump official raises privatization of Social Security and gives example of new $1,000 MAGA accounts
- When do you receive your August Social Security payment? This is the month’s payment schedule for SSI and SSDI with payments up to $5,108
- Is your private health insurance actually Medicaid? The states that have changed the name and confuse millions of Americans with coverage.
- Good news for millions of Americans in August – They will have a double Social Security check with payments of up to $2,900 for…
- Can I be entitled to money damages if I’m affected by the Social Security breach?
What’s the troubling news? That savings account is running low
A new analysis by the Committee for a Responsible Federal Budget, a nonpartisan watchdog group that tracks government spending, just moved the clock up. They now project that the Social Security Trust Fund will run out in late 2032. That’s less than a decade from now.
Why are cuts coming?
Legally, Social Security is not allowed to pay out more than it brings in from payroll taxes when the trust fund is depleted. Therefore, if the trust fund exhausts—and Congress takes no action—benefits will automatically decrease by approximately 24%.
This information is not just a rumour circulating among people. That’s the actual cut your monthly check could face.
Here’s how that breaks down:
- If you receive $1,500 a month, you might end up with only $1,140.
- Over a year, the cut could result in a loss of over $4,000.
- That’s almost $24,000 taken out of your retirement income in six years.
What was behind this change?
You may be familiar with the new legislation referred to as the One Big Beautiful Bill Act, signed by President Trump. While the specifics of the legislation address many topics, its fiscal impact—according to the committee’s latest analysis—is hastening the time frame for Social Security’s financial crisis.
The legislation affects how much the government as a whole is spending, and that adjustment appears to be putting even more strain on the Social Security system.
Who will be hurt the worst?
The size of the cut will depend on a number of factors—like your age, marital status, and work history. But the idea is that anyone receiving benefits starting in 2032 and beyond could be hurt.
That’s more than 60 million individuals—retirees, disabled individuals, and survivors of deceased workers.
And for a lot of them, Social Security is not a bonus. It’s the primary source of income.
Well, here’s the infuriating part. Certain politicians are vowing not to touch Social Security—i.e., they refuse to raise taxes or slash benefits now. But by not doing anything, they’re actually worsening things.
As described by the committee:
“Policymakers vowing not to touch Social Security are implicitly supporting steep benefit reductions for 62 million retirees in 2032 and later.”
That is, if Congress does nothing, the cuts will take effect automatically—and that will hurt a lot of people.
What can you do?
Right now, there’s no need to worry, but it’s time to pay attention. Here are a couple of things you can do to prepare:
- Stay informed. Watch Social Security announcements and bills proposed by Congress.
- Check your benefits. Visit [ssa.gov](https://www.ssa.gov) and review your estimated future payments.
- Speak with a financial planner. If you’re close to retirement, make sure your income and savings strategy accounts for any changes to Social Security.
- Make your voice heard. You can call your local representatives and let them know that Social Security matters to you—and you expect them to do something about it.
—
Stay prepared. Stay informed. And don’t let $24,000 slip away without a fight.
