By the year 2034, it is estimated that the reserves of the Social Security Administration will be depleted by 25%.
That means that, by that year, Social Security recipients may end up getting about 76% of their monthly benefits.
A Social Security recipient receiving $1,500 monthly now, the current payout average, would end up getting roughly $1,140 by 2034. That is a cut of more than $360 in benefits a month, according to studies published by the Urban Institute.
A married, retired couple receiving $2,530 monthly now would only get $1,920 monthly by 2034. That is a cut in benefits of ore than $600 monthly.
If these financial cuts are examined throughout the course of an entire retirement, the effect looks even starker.
An adult with an average-income who retired between 2015 through 2020 will make $500,000 over the course of their retirement. That payout over retirement will decrease to $380,000 after the 2034 cuts.
A couple who retired between 2015 through 2020 will typically make $1 million in benefits throughout their retirement. The planned 2034 cuts will decrease that amount to $760,000.
To add insult to injury, the planned 2034 Social Security cut will increase by 2050.
By then, any individual eligible for Social Security benefits will receive over $1 million over the course of their retirement. Retired couples in 2050 will receive over $2 million throughout their retirement.
If Congress does nothing to mitigate the impending 2034 Social Security cuts, then it will happen. In the meantime, millions of elderly Americans could transition into poverty due to the planned 2034 benefits cuts.
Losing benefits
Over 40 million Americans receive their Social Security benefits annually via the facilitation of over 1,200 affiliated offices.
About 66% of Americans, or 45% of individuals and 21% of married retirees, derive over 90% of their income exclusively from their Social security benefits. More than 33% of all elderly American derive the majority of their income from their Social Security benefits.
The average human lifespan is roughly 72 years. So, millions of Americans retiring in 2034 are at risk of retiring in poverty. Or even sooner.
The Congressional Budget Office publicly stated in October 2020 that the 2034 Social Security budget cuts could initiate as early as 2031.
