Retirees Could See A $17,400 Cut In Social Security If Fund Isn't Shored Up

A new study is warning that retirees could see drastic cuts to their Social Security benefits in the next decade if Congress doesn't act to save the program.

According to the nonpartisan Committee for a Responsible Federal Budget, the Old Age and Survivors Insurance (OASI) trust fund is forecast to be insolvent by 2033. Once that trust fund has run out of money, Social Security will only be able to pay out benefits with the money it collects from taxes.

"Upon insolvency, the law mandates that the OASI trust fund can only spend in amounts equal to incoming trust fund revenue, which means that all 70 million retirees, dependents, and survivors – regardless of age, income, or need – will see their benefits cut by 23 percent," the group wrote.

As a result, a dual-income couple would see their benefits slashed by $1,450 per month or $17,400 annually. Single retirees would see their yearly benefits decrease by $13,100.

Low-income retirees will see a smaller cut in their benefits, while those with a high income will see a larger decrease in their monthly checks.

"Although the cut for a low-income couple would be smaller, it would represent a larger share of their income – and so senior poverty would rise significantly upon insolvency," the CRFB warned.