Millions of Americans who rely on Social Security could see their monthly benefit checks reduced by an average of around $500 if lawmakers don’t address a looming crisis, according to an analysis.

Social Security’s retirement trust fund is projected to become insolvent in 2032, an August 2025 letter from the Social Secutiy Administration’s (SSA) Office of the Chief Actuary read. At that point, the rules of the Social Security Act would make the agency unable to pay full scheduled benefits and require an across-the-board 24% reduction, according to a Committee for a Responsible Federal Budget analysis released Wednesday. The average beneficiary nationwide would lose approximately $500 per month, with retirees in 29 states facing cuts exceeding that amount.

“No state would be spared from the potentially devastating effects of insolvency. With less than seven years until Social Security is projected to be insolvent, policymakers need to enact changes to the program as quickly as possible to protect against these scenarios,” the organization wrote.

The CRFB released its findings ahead of the Social Security Administration’s (SSA) yearly Trustees Report, the federal government’s yearly assessment of the program’s finances, according to CBS News. The SSA report is anticipated to be released in the weeks ahead. (RELATED: Social Security Administration Offers Receipts To Dispute WaPo Hit Job)

Social Security’s retirement program currently provides benefits to roughly 63 million Americans, with retirees, spouses and dependents among them, according to the CRFB. The organization noted that the program’s costs have surpassed its cash flow for the past 16 years, requiring it to draw from trust fund reserves.

Even once those reserves are exhausted, Social Security would still collect payroll taxes and continue paying benefits, but only at a reduced level, CBS News reported.

Generated by ChatGPT using data from the Committee for a Responsible Federal Budget report. Produced by Daily Caller

The largest projected monthly benefit reductions would hit retirees in Connecticut, who would lose an average of $556 per month, followed by New Jersey at $554, New Hampshire at $553, Delaware at $549 and Maryland at $541, according to the CRFB. Washington, Minnesota, Massachusetts, Michigan and Utah rounded out the top 10 states facing the largest average monthly cuts.

The analysis also found that between 10% and 23% of every state’s population would be impacted by benefit reductions, and over 15% of residents in 47 states would be affected. Maine would see the largest share of residents impacted, with nearly 23% of its population receiving reduced benefits, followed by West Virginia, Vermont, Delaware and Montana, according to the CRFB.

The impact would extend far beyond retirees’ monthly budgets. The CRFB estimated that a 24% benefit reduction would eliminate roughly $345 billion in benefits nationally each year, representing about 1.1% of U.S. gross domestic product.

Social Security Trustees say insolvency will come one year sooner!

In 2032, the average retiree’s social security check will have to decline about $500 or 24%. I have repeatedly tried to reform & save the Social Security Fund.

Will Congress address this looming disaster in…

— Senator Rand Paul (@SenRandPaul) June 3, 2026

The warning comes amid growing concerns about Social Security’s long-term finances, as an aging population and a declining worker-to-beneficiary ratio put increasing pressure on the program, the Washington Examiner reported. The SSA’s 2025 yearly report projected that they would be able to pay out full benefits through 2033, according to a statement. However, the Congressional Budget Office announced in March that they projected the trust fund would run dry in 2032. (RELATED: Social Security Now Headed For Insolvency Even Sooner Than Expected)

The projected insolvency date falls during the terms of the next president and Congress, setting up Social Security’s future as one of the most significant fiscal challenges facing federal policymakers in the coming years, according to the CRFB.