A new report has revealed a grim outlook for social security recipients. According to the analysis from the Committee for a Responsible Federal Budget, social security recipients could lose as much as $500 per month if the program’s trust fund continues to run low at the current rate.
The trust fund, which funds social security payments, has been a vital resource for at least 70 million retirees, spouses and dependents. However, the retirement trust fund is projected to run out in the next seven years, the report states, per Newsweek. As a result, social security recipients may see a 24% reduction in their checks by 2032, which amounts to $500 per month.
Which states would be affected by a reduction in Social Security funds?
The CRFB highlights several states that may be especially affected by the current projections. Those states include Connecticut, Delaware, Maryland, New Hampshire and New Jersey. Per the report, retirees in these states may see the largest reduction in their benefits. Across the nation, about 63 million people could see reductions, the report adds. At least 10 percent of residents in every state could be impacted, according to the data.
“No state would be spared from the potentially devastating effects of insolvency,” the CRFB report states, per Fox 8. “With less than seven years until Social Security is projected to be insolvent, policymakers need to enact changes to the program as quickly as possible to protect against these scenarios.”
What are lawmakers doing to preserve Social Security benefits?
According to Fox 8, lawmakers are making various proposals to make sure retirees don’t lose their benefits in the coming years. One idea from the CRFB suggests that payments should be capped at $50,000 per beneficiary. However, Congress hasn’t yet introduced any measures to preserve social security benefits.
According to CBS News, the Social Security trust fund has struggled to keep up in recent years as the number of beneficiaries continues to grow. Beneficiaries are now hoping to see a resolution from Congress before the funds are depleted.