Social Security Reserve Depletion Will Cut Benefits by 21 Percent Beginning 2033: Report
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Social Security recipients stand to lose more than a fifth of their annual benefits beginning in 2033 because of significant reserve depletion in the federal program, according to a recent report released by a nonpartisan policy analysis organization.
“The Social Security program is currently paying out more in benefits than it collects in payroll tax and other revenue, and it is drawing down its reserves to cover the remaining cost of benefits,” a Sept. 5 report by the Committee for a Responsible Federal Budget (CRFB) stated. “The program’s Trustees project that the OASI trust fund—which funds retirement benefits—will deplete its reserves in the fourth quarter of 2033.”
Once the reserves are depleted, a 21 percent cut, as required by law, will be implemented for the 70 million beneficiaries of Social Security, CRFB stated.
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