A trust fund that helps pay Social Security benefits for more than 60 million retirees and family members is expected to run out of money in 2032.

Unless Congress makes changes by then, seniors will see an automatic cut in their monthly benefits of 22%, according to a report released Tuesday by Social Security Trustees.

“The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way to phase in necessary changes gradually and give workers and beneficiaries time to adjust,” the report says.

The forecast shows the trust fund will be exhausted three months earlier than was predicted last year. Social Security’s finances are challenged by a falling birth rate, reduced immigration and the tax cut passed by the Republican Congress last year. Those moves are partially offset by stronger productivity gains.

The basic challenge for Social Security is demographic. Baby boomers are retiring at a rapid pace, and there are fewer younger workers paying into the system for every senior collecting monthly benefits.

Congress could patch the shortfall by raising taxes, reducing benefits or some combination of the two.

Otherwise, beneficiaries will see their monthly payments cut automatically.

“Nationally, the average monthly cut would total $500, which is more than what the average retired household spends on groceries each month,” said a report from the Committee for a Responsible Federal Budget.

News Source : https://www.opb.org/article/2026/06/09/social-security-funds-could-run-short-by-2032/