The clock is ticking faster towards the depletion of Social Security's trust fund that helps fund benefits for about 70 million Americans.
The Congressional Budget Office (CBO) said this month it expected the the Old-Age and Survivors Insurance Trust Fund − one of the two funds used to pay Social Security benefits − would run dry in 2032, a year earlier than expected. CBO, which provides budgetary analysis to Congress, estimated last year that the trust fund would be emptied in 2033.
When the fund is depleted, Social Security recipients could see an average 28% cut to monthly retirement and survivor benefits, the Committee for a Responsible Federal Budget (CRFB) said. Previously, CRFB predicted a typical couple retiring just after insolvency would face an $18,400 cut in annual benefits.
"Social Security has been on a path toward insolvency for some time – but over the past year, politicians have made its financial condition even worse," CRFB wrote in its report.
New legislation from President Donald Trump's signature tax and spending package last year will shrink income to the fund, CRFB said.
