Social Security Benefits to Be Cut by 24% over Next Seven Years: Fiscal Watchdog
Social Security beneficiaries are expected to face a 24% cut in payments by late 2032 following the enactment of President Donald Trump’s One Big Beautiful Bill Act, according to new projections from a nonpartisan fiscal watchdog.
The projected cut would equal an $18,100 annual benefit cut for a dual-earning, middle-class couple that retires at the start of 2033, the Committee for a Responsible Federal Budget revealed in an analysis released Thursday. In comparison, a single-income couple at the same class level that retires at the end of the seven-year period would see a lower benefit cut of $13,600 per year.
“Policymakers pledging not to touch Social Security are implicitly endorsing these deep benefit cuts for 62 million retirees in 2032 and beyond,” the nonprofit organization said. “It is time for policymakers to tell the truth about the program’s finances and to pursue trust fund solutions to head off insolvency and improve the program for current and future generations.”
The new tax law essentially reduces the incoming tax revenue toward Social Security’s trust fund, accelerating the retirement program’s depletion. The drastic cut would take effect once the Social Security trust fund runs out of money in less than a decade.
Retirees may also find it harder to access healthcare due to an 11% cut in Medicare hospital insurance payments, the analysis shows. (Read more from “Social Security Benefits to Be Cut by 24% over Next Seven Years: Fiscal Watchdog” HERE)
Photo credit: Gage Skidmore via Flickr
