Social Security could pay 24% less in six years — here’s what that means for your retirement

Social Security could only pay about 76% of scheduled benefits in six years, when the Old-Age and Survivors Insurance Trust Fund is projected to be exhausted, according to the Congressional Budget Office. That means monthly checks could drop by roughly 24% — about $18,400 less per year for a typical retired couple — unless Congress acts. The system would continue paying benefits using incoming payroll taxes, but without a reserve, it can’t cover the full amount promised. The shift to a pay-as-you-go model would leave millions of current and future retirees facing a stark shortfall. A 24% reduction in benefits would affect the financial security of current and future retirees who rely on Social Security as a primary income source.