Retirees Could See Social Security Benefits Drop by $500 a Month
Key Takeaways
The Social Security Administration projects that payroll taxes will only be able to fund 78% of Social Security benefits by 2032.
That could mean cuts to retirees’ monthly payments.
A new analysis predicts which states could see the steepest drop.
If you plan to retire in the next decade, new updates from the Social Security Administration (SSA) could mean your retirement benefits might be less than you expect.
According to a June update from the Social Security Board of Trustees, the SSA projects that the Old-Age and Survivors Insurance (OASI) trust fund reserves will be depleted in the third quarter of 2032, with 78% of benefits payable at that time.
According to the Committee for a Responsible Financial Budget (CRFB), that means benefits will need to be reduced by an estimated 22% by 2033 “to ensure the program’s costs do not exceed its revenues.”
Just how much lower your retirement benefits might be depends heavily on your income. The CRFB estimates that a typical dual-income couple could see their benefits slashed by $16,900 per year. Across all 50 states and the District of Columbia, the CRFB predicts that monthly benefit cuts would amount to $500 on average.
According to a MoneyLion report via Yahoo Finance, retirees in certain states could feel the loss more than others. These 15 states have the highest average Social Security payments, and therefore could see the biggest cuts as soon as 2033. Here’s how much retirees in these states could stand to lose:
Connecticut: $556 per month
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
Rhode Island: $519
Vermont: $516
Key Takeaways
The Social Security Administration projects that payroll taxes will only be able to fund 78% of Social Security benefits by 2032.
That could mean cuts to retirees’ monthly payments.
A new analysis predicts which states could see the steepest drop.
If you plan to retire in the next decade, new updates from the Social Security Administration (SSA) could mean your retirement benefits might be less than you expect.
According to a June update from the Social Security Board of Trustees, the SSA projects that the Old-Age and Survivors Insurance (OASI) trust fund reserves will be depleted in the third quarter of 2032, with 78% of benefits payable at that time.
According to the Committee for a Responsible Financial Budget (CRFB), that means benefits will need to be reduced by an estimated 22% by 2033 “to ensure the program’s costs do not exceed its revenues.”
Just how much lower your retirement benefits might be depends heavily on your income. The CRFB estimates that a typical dual-income couple could see their benefits slashed by $16,900 per year. Across all 50 states and the District of Columbia, the CRFB predicts that monthly benefit cuts would amount to $500 on average.
According to a MoneyLion report via Yahoo Finance, retirees in certain states could feel the loss more than others. These 15 states have the highest average Social Security payments, and therefore could see the biggest cuts as soon as 2033. Here’s how much retirees in these states could stand to lose:
Connecticut: $556 per month
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
Rhode Island: $519
Vermont: $516
Source link
