Social Security Beneficiaries LOSING $500 Per Month | SSA, SSI, SSDI Payments

Added: 2026-06-08

[00:00:00]According to a new report, Social Security beneficiaries, on average, are set to lose right around $500 per month from their checks come 2032.

[00:00:11]This is because right now, the trust fund is set to go insolvent right around 2031 or 2032. And whenever this happens, there's going to be automatic benefit cuts taking place for all Social Security beneficiaries right around 25%.

[00:00:26]And yes, we've talked about this channel we talked about this on this channel before, and we're going to continue to talk about it just because of how devastating this would be. $500 per month on average, for some folks it could be even more than that. This would This would absolutely be one of the most devastating things to happen, and this should absolutely be taken seriously because right now, let's face it, it does not seem that Congress is taking that taking this all that seriously, and they believe firmly that they can just continue to kick the can down the road to the very last second until they can get something done. But right now, this is the best opportunity for them to get something done without having to take such drastic options as they would have to, you know, months or even weeks before this insolvency and these drastic benefit cuts take place. So, in today's video, we are going to be covering everything that you need to know. So, let's go ahead and dive into it today.

[00:01:25]So, according to USA Today, Social Security recipients may lose $500 monthly in 2032, report says. So, Social Security beneficiaries will lose an average of $500 per month in benefits if the program's trust fund is depleted in less than 7 years as predicted, according to a new analysis. For the last 16 years, the cost of Social Security's retirement program has exceeded the amount that it receives from taxes collected from paychecks, forcing it to dip in dip it dip into its trust fund reserves to cover the shortfall. Without any changes, that retirement trust fund will be exhausted in 2032, according to the Social Security Trustees. So, basically, the way the trust fund gets its money is by younger people working and paying taxes into the system. So, if you're a W-2 employee, you pay 6.2 payroll FICA tax, and your employer, your boss, matches the other 6.2%. So, in total, it's 12.4%, whereas if you're self-employed, if you're an independent contractor, you actually pay the entire 12.4%. They also get some revenue from you by that the Social Security retiree, of course, from your benefits right around 50% of beneficiaries, at least before this year, before they had that increased standard deduction of 6 to 12,000 per year, a lot of folks were paying, you know, some taxes on their Social Security benefits as well. So, those are the main ways that Social Security Trust Fund gets its money. And unfortunately, yes, they have been dipping into the trust fund because there has not been enough money. There's been less money in revenue flowing in than there has been money flowing out, and that's why we're seeing this shrinkage in the trust fund.

[00:03:09]And eventually, yes, in 2031, 2032, there's not going to be enough money flowing into the trust fund plus the money already in there to be able to pay out everyone 100% of their scheduled benefits. You're still going to receive something, though. They're just going to have to cut everyone's benefit across the board, whether you receive SSI, disability, or retirement benefits by up to 26%.

[00:03:28]It's going to be right around 25% more than likely. And again, one of the main reasons for this taking place is because, you know, since the beginning of Social Security, pretty much always relied on there being more younger people working and paying taxes into the system and fewer people actually collecting Social Security benefits. So, you can see up on the screen here, all the way back in 1945, there were 42 workers per beneficiary. So, there were 42 people working and paying taxes into the trust fund for every one person receiving Social Security benefits. 5 years from then it changed drastically, went all the way down to 16.5 workers per beneficiary, but it's still a lot better than what it is today where there's just 2.7 workers paying taxes in the system per beneficiary. That's that That's a huge difference. You know, in just 70 years from 1950 to pretty much 2020, going from 16 and 1/2 workers per beneficiary all the way down to 2.7 workers per beneficiary.

[00:04:31]Um and you know, that's that's the main problem. So, we're either we're either going to have to raise taxes on the younger generation to ensure there's more money flowing into the trust fund or we're going to have to cut benefits for people currently receiving Social Security. And they also see here that at that point, everyone's benefit could see a 24% decline. The Committee for a Responsible Federal Budget Estimates nationally, that equals to a $500 average monthly loss, which is more than what the average retired household spends on groceries each month, it said.

[00:04:59]Households with a person over 65 spend an average of $5,251 on food at home in 2024 or $438 a month according to the 2024 Consumer Expenditure Survey. Adjusted for inflation, this figure would equal $461 in 2026 according to the CRFB. It said, quote, "No state would be spared from the potentially devastating effects of insolvency, CRFB warned in its report."

[00:05:27]And yes, $500 a month would be absolutely devastating as they mentioned. That's your grocery bill.

[00:05:32]That is, you know, utilities. That money could go towards rent.

[00:05:36]And again, it's it would This is something that definitely needs to be taken seriously. That's why I'm talking about it so much on this channel. Um it's not meant as clickbait. It's not meant as a scare tactic. This is absolutely something that can happen and Congress just does not seem to take it seriously.

[00:05:52]Sure, they come out with these different bills, um but these bills are only going to go so far without, you know, actually voting on them. And we can't seem to actually have Democrats and Republicans coming together with a serious plan. We just have these partisan plans where only Democrats are getting on board with them or only Republicans are getting on board with them. They need to create some sort of bipartisan commission, come up with some joint ideas, um maybe have to raise the full retirement age for younger generations, have to cut benefits a little bit, but you have to get something done because we cannot have a $500 per month benefit cut taking place. That would be way too drastic and something that just cannot happen. That would have absolutely devastating effects not just, you know, for, you know, Social Security beneficiaries, but pretty much the economy across the board um would face, you know, a lot of really, really bad effects from this taking place. So, they go on here to say that nearly 70 million Americans or about one in five people receive Social Security benefits. That includes retirees, surviving spouses, and dependents. And between 10 and 23% of each state's population would be affected according to the CFRB and between 10 and 23% of each state's population would be affected, as I just mentioned. Now, the states with the highest percentage of residents facing benefit reductions, it would be Maine at the top at 22.9% then we have West Virginia, Vermont, Delaware, Montana, New Hampshire, South Carolina, Wisconsin, Michigan, and Pennsylvania rounding out the top 10 of the states with the highest percentage of residents facing benefit reductions.

[00:07:23]Have to say I'm a little bit surprised that Florida is not on the list, but they go on here to say that if Social Security benefits were cut by 24% today, it would amount to $345 billion this year or 1.1% of gross domestic product, CFRB estimates. Individual state impacts range from 0.2% to 1.9% of GDP with cuts exceeding 1% of GDP in 40 states. CFRB said, "States that have older populations and lower per person incomes would be impacted the most." It said.

[00:07:54]Now, again, this is not something that's guaranteed to happen. I think in uh congressional fashion, they probably will wait to the very last second in 2031 and 2032 to get something done. At that point in time, again, they will have to do something a lot more drastic than what they would have to if they were to want to do it today. So, for example, they're going to have to raise taxes a lot more. They might even have to raise the full retirement age even more. They might have to cut benefits even more. They're going to have to make a lot more drastic changes if they wait to the very last second to make sure the trust fund stays solvent as opposed to getting something done today. Um so, you know, right now, I mean, just in case, again, this is not financial advice, but if it were me, these are some things um that I would do just sort of prepare for the situation of potentially losing out on $500 per month in benefits. So, the first thing that I would try to do is sort of build like an emergency fund, uh sort of like a benefit cut reserve. So, uh try to save up that $6,000 extra uh for year for the year when it cuts. Uh put this in like a high-yield savings account or something very, very safe where it's going to gain uh money from interest over time. Keep that money safe. Maybe you can do 1 to 3 years.

[00:09:06]So, 1 year would be $6,000 total. Year 2 would be $12,000 total. And year 3 would be $18,000. Another thing, of course, you could do is review your spending now and see, you know, what could be cut or trimmed. Uh one of the things that I always try to do is I try to call like different insurance companies or, you know, places I currently have um monthly bills with. And I say, "Look, you know, I'm considering looking at another company. Right now, I'm paying, you know, too much and I'm considering to cancel." And I see if they can give me a better deal. And a lot of those cases they actually give me a discount. Uh so that's certainly worth doing to certain insurances or different services. Uh you can also try to consolidate your TV services down TV services down. So a lot of folks might have Netflix, you know, Hulu, Disney Plus, HBO, and just numerous others, maybe 10 plus streaming services and you may actually only use one or two consistently consistently. So maybe you only use like Netflix consistently. So maybe you cancel the other nine or 10 that you have and just go down to Netflix. That's always an option as well. You could also try to eat out less and look for, you know, more affordable places uh to buy groceries, maybe try to cook at home a little bit more. So for myself personally, I only get, you know, the majority of my groceries, probably 95% of my groceries, I will get at Aldi as opposed to going like in my in my example, instead of going to Publix, where Publix there might be something for, you know, $5, at Aldi I can get it for $2. And if I were to do exclusively shop at Publix, at at least in my case, my grocery bill would be probably at least three or four times higher than what it is now. Um and Aldi actually has really high-quality products. If you have an Aldi in your area, I would definitely recommend checking them out if you are not uh shopping them shopping uh there already.

[00:10:52]Um definitely you're going to get a bigger discount on your groceries. they actually have really high-quality things as well. Uh so shopping at more affordable grocery stores is definitely another option. You could also consider going back to work on a part-time basis.

[00:11:05]I would not think this is a punishment though. Uh work somewhere I would try to work somewhere where it might be enjoyable for you. Um if it's possible, try to start up your own business where you're actually working for yourself on your own time and you're not clocking in for the man, I guess per se. Uh think of this as an opportunity to, you know, stay active and be out around people and try to I you know, think of it as a positive thing rather than a negative thing. Uh you You also try to delay some of your larger discretionary purchases.

[00:11:33]So maybe before you're considering a going out and buying a new car, a nice new car, maybe you could put that off until you're a little bit more on a more financial sound foot where you're not worried about this $500 per month cut.

[00:11:47]Maybe you're going to do a larger home renovation, maybe you're going to renovate your bathrooms and your kitchen. Maybe you could delay that as well. That's just another option. Also, you could also try to reduce some of your medical expenses. I would not cut back too far on this. And again, this is not supposed to be, you know, financial advice. This is definitely not financial advice. And I would definitely not cut back in areas where it's actually going to make you more sick. For example, if you need a medication, definitely keep buying that medication. But if there are areas where you can cut back, you could always look into that as well. And I would definitely actually, you know, in some cases you might even spend a little bit more. Maybe start going to the gym, for example, because if you start going to the gym and investing in your health, in the long term you can actually save money. Because if you, you know, lose weight, if you gain muscle, if you get healthier, in the long term you can actually spend less going to the doctor on certain things. So that's something to consider as well. And of course, you can also consider other housing options. So right now if you're if you own a house, maybe you could consider downsizing to something smaller. Maybe you could even move to a lower cost of living area. You could always even consider, you know, making some additional income by renting out one of your rooms. That's always an option as well. Now, at least in my opinion again, I do think that Congress will get something done here.

[00:13:01]Um but again, I think it's better to prepare now while you have like 5 to 6 years to prepare and save up some extra money and sort of get a plan in place. Because it's better to get a plan in place right now and not have to use it than to wait 5 or 6 years, have your benefits cut by $500 a month, and then not have any additional money there and wish you'd planned. So better to plan now and not need it than to not, you know, plan at all, at least in my opinion. I Again, I think they will get something done.

[00:13:31]They'll probably wait till the very last second, but again, it's Congress here.

[00:13:34]Congress may not get something done. We cannot put our full trust and faith in Congress, but I really hope they get something done sooner rather than later.

[00:13:44]But with that said, leave your thoughts and comments below. Would definitely love to hear your thoughts on this, but that's all I have for today's video, and I will see you in the next one.