(The Center Square) – Over 60 million Americans could see their monthly Social Security checks slashed by $500 on average starting in 2032, according to a new report analyzing the impacts of the retirement trust fund’s insolvency. Absent immediate major reforms, the retirement trust fund will be exhausted in less than seven years, automatically triggering a 24% across-the-board benefit cut.
But retirees in some states will see higher cuts than others, with average monthly benefits shrinking by more than $500 in 29 states. Using the most recent state-level data available, the committee measured the impacts insolvency would have on today’s retirees in each state.
The committee found that retirees in Connecticut, New Jersey, New Hampshire, Delaware, Maryland, Washington, Minnesota, Massachusetts, Michigan, and Utah will be hit hardest, with average cuts ranging from $556 to $523 per month. The estimates are particularly troubling in light of a recent Congressional Budget Office report showing that Social Security benefits “play a critical role in families’ financial wellbeing in retirement,” particularly for lower-income households.
When measuring how Social Security benefits influenced household wealth disparities between 1989 and 2022, the office's report found that the program “plays a particularly equalizing role because of its progressive benefit formula and near-universal coverage.” As of 2026, retirees make up roughly 17% of the country’s population, meaning Social Security retirement trust fund insolvency would harm state economies along with seniors’ finances.
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