Dominic Genetti: Social Security cuts could average $500 a month by 2032, report says
In six years, Social Security benefit payments could be cut by a national monthly average of $500 as money in its retirement trust fund is projected to be depleted.
The Committee for a Responsible Federal Budget, a nonpartisan fiscal watchdog and deficit-reduction advocacy group, reports that if the Social Security retirement trust fund runs short in 2032, as projected, it would trigger a 24% benefit cut. And while the national monthly average cut would be $500, retirees in some states could see more or somewhat less than that.
Put simply, Social Security, under current law, can only pay benefits from incoming revenue. The CRFB also notes that $500 is more than the average retiree household spends on groceries.
"No state would be spared from the potentially devastating effects of insolvency," the CRFB writes. "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."
Read more: Social Security retirement age rises to 67, may increase further
In regard to Congress, lawmakers have several options, including raising payroll taxes and changing the benefit eligibility formula for Social Security, such as raising the retirement age and adjusting cost-of-living increases.
According to the CRFB, the largest average monthly cut would be in Connecticut at $556, while the smallest would be in Mississippi at $459.
Here is a breakdown of the projected impact of a 24% cut on Social Security retirement benefit recipients in Michigan, Illinois and Texas:
Michigan
* $523 average monthly cut
* People affected: 2 million
* A 19.8% share of the population would be affected
* Total benefit cuts would add up to about $12.1 billion
*
Important to note: Michigan is one of the top 10 states for largest average monthly cuts and share of residents affected.
Illinois
* $507 average monthly cut
* People affected: 2.1 million
* A 16.5% share of the population would be affected
* Total benefit cuts would add up to about $12.3 billion
Texas
* $489 average monthly cut
* People affected: 4.3 million
* A 13.6% share of the population affected
* Total benefit cuts would add up to about $23.7 billion
*
Important to note: The CRFB lists Texas third in the U.S. in total benefit cuts, behind California and Florida.
Copyright 2026 Tribune Content Agency. All Rights Reserved.
This story was originally published June 6, 2026 at 7:31 PM.