As the United States moves closer to the 2030s, a major issue is worrying millions of Americans—Social Security may soon run out of money, and payments could be cut by almost 25% starting in late 2032.
If the government does not act soon, this could affect the lives of nearly 67 million people who depend on Social Security to meet their daily needs.
Let’s understand what’s going wrong, how big the cuts could be, and whether Congress can fix the situation in time.
What’s Causing the Social Security Crisis?
According to a report by the Committee for a Responsible Federal Budget (CRFB), the main reason for the crisis is that the Old-Age and Survivors Insurance (OASI) Trust Fund—which collects payroll taxes to pay Social Security—will run out of money by 2032.
When that happens, Social Security will only be able to give out what it collects from payroll taxes. That means benefits will drop automatically by 24% for everyone receiving payments.
This is not a small issue. A cut like this could cause millions of seniors to fall into poverty and make retirement very hard for many families.
How Much Will People Lose?
If no action is taken, these are the estimated yearly losses:
Dual-earner couple: $18,100 less per year
Single-earner couple: $13,600 less
Dual-earner low-income couple: $11,000 less
High-income couple: $24,000 less
These reductions would start in 2033 and may get worse over time. By the year 2099, cuts could reach 30%, says the CRFB.
How the New OBBA Law Makes It Worse
A new law called the One Big Beautiful Bill Act (OBBA), passed in the summer, is making the problem even worse. This law gives bigger tax breaks to seniors and lowers taxes on Social Security income.
While that may sound good for now, it also reduces the money coming into the Social Security program, pushing the trust fund’s depletion date a year earlier, now expected by 2032.
If OBBA’s tax cuts become permanent, the benefit cuts could be even bigger and faster.
Why This Matters to Everyone
Social Security is not just for the elderly. Almost every working American pays into the system, and most will rely on it after retirement.
A survey by AARP found that 96% of adults consider Social Security essential. For nearly two-thirds of retired Americans, it is their main source of income.
Without Social Security, many will struggle to pay for basic things like food, medicine, and housing.
Can Congress Fix the Problem?
The good news is that Congress can still act to prevent these cuts. In the past, lawmakers stepped in just in time, such as in the 1980s when they:
Raised the retirement age
Started taxing Social Security benefits
Possible solutions being discussed today include:
Raising the payroll tax slightly
Increasing the retirement age
Removing the income cap so high earners pay more
Reducing benefits for wealthy retirees
But the longer lawmakers wait, the harder it will be to fix.
For millions of people, Social Security is a lifeline. But without fast action from the government, the checks that retirees count on could drop sharply by 2032. The impact will not only affect today’s seniors but could harm future generations as well.
Americans are watching and waiting for their leaders in Washington to come together and find a lasting solution—before time runs out.