Map Shows States to Be Hit Hardest by Social Security Funding Shortfall
Summary
A key Social Security fund that pays retirement benefits is expected to run out of money by 2032, a year earlier than thought before. This could cause benefit cuts, especially affecting states with many older people who rely heavily on Social Security income.Key Facts
- The Old-Age and Survivors Insurance (OASI) trust fund provides most Social Security retirement and survivor benefits.
- The fund is mainly paid for by payroll taxes from workers and employers.
- Social Security is currently paying out more than it collects, using up its reserve savings.
- The 2026 Social Security Trustees Report projects the OASI fund will be depleted by 2032.
- After depletion, tax income would only cover about 75% of scheduled benefits, leading to cuts without new laws.
- The broader Social Security system, including disability benefits, may run out by 2034.
- Aging population, lower birth rates, and slower workforce growth reduce the number of workers paying into the system.
- Older, lower-income, and rural states with many benefit recipients will be hit hardest by benefit reductions.
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