A typical dual-income couple would lose $16,500 a year in benefits if the Social Security trust fund runs dry, a new report finds.
The report by the Committee for a Responsible Federal Budget, which calls itself a nonpartisan organization that educates the public on major fiscal issues, quantified the impact of inaction. The retirement trust fund is projected to run out of money in 2033, barring a congressional fix. Depletion would trigger an automatic 21% benefit cut.
That is because Social Security currently relies on the trust fund to make recipients whole. The program pays more out in benefits than it collects via payroll taxes and other revenue, and the trust fund’s reserves make up the difference. If they become depleted, incoming payroll taxes would continue to fund an estimated 79% of scheduled benefits.