CBO Projects Social Security Trust Funds Depleted by 2032-2033; Benefits Could Face Across-the-Board Cuts

The Congressional Budget Office projects the Old-Age and Survivors Insurance trust fund will be depleted by 2032 and the Disability Insurance trust fund by 2033, a year earlier than its previous and trustees' estimates. The combined trust funds would be exhausted in 2033. If the funds are depleted without congressional action, benefits would continue but be cut, with a potential across-the-board reduction of about 20%. The average monthly Social Security retirement benefit in January 2026 was $2,071. About 40% of Americans aged 65+ rely on Social Security for half or more of their income, and 14% for 90% or more. Congress is urged to act within the next half-decade to address the shortfall and protect or expand the program.