A new analysis projects a 24% cut to Social Security benefits by late 2032.

Social Security benefits may face a 24% cut by late 2032, potentially doubling senior poverty. A recent analysis attributes the accelerated depletion of the trust fund to tax cuts in a specific bill. This cut could mean an $18,000 annual reduction for a dual-earning retired couple. Medicare hospital payments might also be reduced by 11%, further impacting retirees. The Social Security system is transitioning to a "pay-as-you-go" model as reserves dwindle. Tax revenue reductions, particularly from senior deductions, contribute to the fund's faster depletion. Social Security remains a highly valued government benefit among Americans. Despite the looming crisis, Congress may delay action until the last moment, mirroring past behavior. A timely intervention is needed to avoid significant benefit reductions for retirees.