Social Security, the nation’s largest retirement program, turned 90 this week but is anticipated to face the threat of insolvency by 2032, a crisis that could slash benefits by nearly a quarter and deepen partisan divisions over how to preserve the program.
Seven Years From Insolvency
Committee for a Responsible Federal Budget in a report on Thursday cited the new estimates from the program’s Chief Actuary, saying Social Security’s retirement trust fund will run dry in just seven years, forcing automatic benefit cuts of 24% if Congress fails to act.
A typical couple retiring after the insolvency date would lose about $18,400 per year in benefits.
These projections show that time is running out, the report said, adding that the lawmakers must take action now to prevent devastating cuts for retirees.
The insolvency date had previously been projected at 2033 but was accelerated to late 2032, partly due to two new pieces of legislation. On a combined basis, including disability trust funds, reserves would last only until 2034.