Map Shows Worst Impacted States if Social Security Funding Runs Out

A recent analysis from the Committee for a Responsible Federal Budget projects that millions of retirees could see significant cuts to their Social Security benefits within the next decade if Congress fails to address the program's impending financial crisis. If the OASI trust fund, which funds retirement and survivor benefits, runs dry as projected in late 2032, a typical dual-income couple retiring in 2033 could face an annual benefit reduction of around $16,900.

This would represent a 22 percent decrease from promised benefits. Senate Finance Committee member Chuck Grassley emphasized the imminent depletion of the trust fund, warning that by late 2032, Social Security would only have enough revenue from payroll taxes to pay 78 percent of promised benefits. The financial impact would vary by income level, with low-income couples potentially losing $10,200 annually and high-income couples up to $22,300.

While the absolute cut amounts would be smaller for low-income couples, the share of total income lost would be comparatively larger, potentially causing more financial disruption. The projected cuts could become more severe over time, reaching 35 percent by the end of the century. The crisis would affect a substantial portion of the population, with California alone seeing 6 million people impacted, followed by Florida with 4.6 million, Texas with 4.3 million, and New York with 3.4 million.

However, some states have a higher percentage of their population affected, with Maine at 22.9 percent, West Virginia at 22.4 percent, and Vermont at 22 percent. Despite having the largest number of affected people, California's share of the affected population is relatively lower at 15.2 percent.