Social Security Trust Fund Exhaustiony leads to 24% Benefit Cuts

A typical retired couple could lose roughly $18,400 annually if the Old-Age and Survivors Insurance Trust Fund is exhausted. This would occur as Social Security shifts to a pay-as-you-go model, relying solely on current payroll tax revenue to fund current benefits. The Congressional Budget Office reports the fund could be depleted by 2032. The shortfall is driven by aging demographics, where the number of people over 65 will outnumber those under 18 by 2030, and declining revenue. The Committee for a Responsible Federal Budget suggests that raising the payroll tax rate by one percentage point would close 28% of the solvency gap. Monthly benefits could be cut by 24% on average.