Social Security beneficiaries could face a 22% reduction in scheduled retirement benefits after 2032, according to the Social Security Board of Trustees' annual report released Tuesday.
The trustees said the Social Security trust fund that pays retirement and survivor benefits is projected to exhaust its reserves in 2032.
After that, incoming payroll tax revenue would be sufficient to cover only 78% of scheduled benefits.
The report affects a program that provides monthly benefits to more than 70 million Americans, including retirees, people with disabilities and surviving family members.
The trustees attributed the worsening outlook in part to demographic trends.
