By Rachel Greszler | Heritage Foundation
In just nine years, the oldest Gen-Xers will reach Social Security’s normal retirement age of 67. But they have a rude awakening when they learn that the program’s trust fund is empty, leaving it able to pay out only as much in benefits as it takes from the paychecks of those then working.
That’s straight from the Social Security trustees 2024 report. It also notes that without congressional action, benefits will have to be cut by 21 percent across the board—including for those already retired—beginning in 2033.
For the average beneficiary, who receives about $22,000 a year from Social Security, that 21 percent cut will translate into a loss of $4,600 per year. As Social Security benefits will grow faster than payroll taxes for the foreseeable future, benefit cuts will reach 31 percent at the end of the trustees’ 75-year projections.