American retirees are growing increasingly alarmed over the future of their Social Security benefits, as new reports warn of a 24% cut by 2032 and widespread dissatisfaction mounts over current payments struggling to keep pace with real-world costs.
Retirees bracing for $18,000 cuts if no action is taken
According to a new analysis from the Committee for a Responsible Federal Budget, recent legislation has accelerated the depletion of Social Security’s trust fund. Without congressional action, retirees could face:
- 24% benefit cut by late 2032
- $18,100 loss per year for a typical dual-earner couple retiring in 2033
- Reduced Medicare access due to an 11% hospital payment cut
The “One Big Beautiful Bill Act” (OBBBA) — passed earlier this year — included tax breaks for older people, but critics say it also shrinks the revenue pool feeding Social Security and Medicare.
Survey: Two-thirds of retirees are dissatisfied with their checks
A new report from The Senior Citizen’s League (TSCL) finds that:
- Only 10% of older people are satisfied with their current benefits
- 63% are dissatisfied
- 73% rely on Social Security for more than half their income
- 39% say it’s their sole income source
While the average Social Security check has crossed $2,000 a month, its purchasing power has dropped significantly over the years — about 20% since 2010 due to lagging cost-of-living adjustments (COLAs).
Why COLAs aren’t keeping up
Social Security COLAs are meant to match inflation using the CPI-W (Consumer Price Index for Urban Wage Earners). But experts and retirees argue it underrepresents key cost drivers:
- Housing and rent have outpaced overall inflation
- Transportation and energy costs are up sharply
- Healthcare inflation continues to climb faster than CPI-W tracks
For 2025, the COLA was set at 2.5%, but 80% of surveyed retirees believe their expenses rose faster.
Long-term forecast: Deeper cuts likely
If no changes are made, the trust fund will run dry by 2032. At that point, Social Security will switch to pay-as-you-go, meaning only current tax revenues can fund payouts. That translates into automatic cuts that:
- Hit low-income retirees the hardest
- Could double the poverty rate for older Americans
- Would increase over time, reaching 30%+ by 2099
What’s next: Calls for reform, but no clear plan
Despite bipartisan agreement on the importance of Social Security, few lawmakers are stepping forward with concrete solutions.
- In the 1980s, Congress raised the retirement age and began taxing benefits
- Today, policy experts say similar or more aggressive action is needed
- Advocates warn that inaction is a de facto endorsement of deep cuts