Social Security checks could be cut by $500 a month in 2032, report finds

The millions of Americans who rely on Social Security could see their monthly benefit checks slashed by an average of about $500 if the program's retirement trust fund becomes insolvent, a scenario currently projected for the end of 2032. The reduction would amount to a 24% cut in the typical benefit payment, according to a new analysis from the Committee for a Responsible Federal Budget, a fiscal policy think tank. Social Security's trust fund helps cover the gap between the program's income and benefit obligations, which have outpaced revenue as the baby boom generation retires and the number of beneficiaries grows. Once the fund is depleted, benefits would be automatically reduced unless Congress acts to shore up the program's finances. The impact would impact between 10% to 23% of each state's population, the analysis found. "No state would be spared from the potentially devastating effects of insolvency," the report says. States facing the largest monthly benefit cuts include: Connecticut, with an average $556 cut Delaware, $549 Maryland, $541 Massachusetts, $527 Michigan, $523 Minnesota, $530 New Hampshire, $553 New Jersey, $554 Utah, $523 Washington, $531 Insolvency does not mean Social Security beneficiaries would stop receiving payments altogether. Even after trust fund reserves are depleted, the program would continue collecting payroll tax revenue, allowing it to pay benefits at a reduced level. …