New Social Security bombshell: Benefits may be cut sooner than expected

If you’re counting on income from Social Security in retirement, you need to know the Social Security Trust Fund just announced it’s now projected to run out of money one year earlier than expected – in 2034.

This isn’t speculation. This news comes directly from the Social Security Board of Trustees, in their 2024 annual report that was released last month and reported by CBS News and the Associated Press.

According to CBS, cuts to Social Security could result in slashing your benefits by as much as 23%.

To give you some context, the average person receives approximately $2,000 in benefits every month. So, a 23% cut would reduce your income by $460 per month, or $5,520 per year. In 10 years, that adds up to $55,200 in lost income. Over 20 years, it’s $110,400.

So, it’s not chump change.

Unfortunately, that’s not the only problem with Social Security. For many retirees, the system has been quietly failing them for decades.

Here’s what’s going wrong (and why it matters more now)

Most retirees make a huge mistake when claiming their Social Security benefits.

According to research from economist Laurence Kotlikoff, 94% of Americans file for Social Security at the wrong time — and this mistake costs them an average of $182,000 in lifetime income.

Let that number sink in for a moment.

Even if Social Security was fully funded, most Americans still leave a small fortune on the table.

Now, with benefits at risk of being slashed, there’s even less margin for error.

Good news – a new report titled Your Guide to Filing for Social Security in 2025 and Beyond could help. It’s available at no cost from B.O.S.S. Retirement Solutions, at this link.

Why traditional filing advice could backfire

On the surface, Social Security looks pretty straightforward: If you file for your benefits early, you get a smaller monthly check. If you delay filing for your benefits, you get a bigger check.

But in reality, it’s much more complicated than that.

According to Forbes, there are 2,728 rules in the official Social Security handbook. And there are thousands of rules about those rules.

“Social Security was already confusing. Now it’s a financial minefield – and one simple misstep could cost you tens of thousands of dollars, or more.”

– Ryan Thacker, B.O.S.S. Retirement Solutions

The standard advice from financial media today is to wait as long as possible to claim your benefits. Why? Because the longer you wait, the bigger the paycheck.

That sounds good in theory, but in today’s world, it can backfire. Here’s why:

Taxes: You could get taxed on up to 85% of your Social Security benefits, depending on your total income. The bigger the benefits check, the more taxes you could owe.

Medicare premiums: A larger benefit could push your income above certain thresholds — which could double or triple your Medicare premiums.

Trust fund risk: If you delay your benefits to age 70 and the trust fund runs dry in 2034, your higher check could still be cut by as much as 23% – possibly more.

“It’s time to throw out the old playbook. Filing for Social Security isn’t just about your age. It’s also about your taxes, income, longevity, and now insolvency risk.”

– Tyson Thacker, B.O.S.S. Retirement Solutions

What’s the solution?

To help you make the best decision based on today’s Social Security system, B.O.S.S. Retirement Solutions is now offering Your Guide to Filing for Social Security in 2025 and Beyond – and it’s absolutely free.

This free report explains what every retiree should know about the state of Social Security today, and how it could impact your benefits.

Download Your Guide to Filing for Social Security in 2025 and Beyond here.

B.O.S.S. Retirement Solutions has helped 33,000+ families make informed decisions on Social Security. They are a 10 time Best of State Award winner, and are frequently featured on NBC, CBS, and ABC TV, and on News/Talk radio stations

________________________________________

Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are published authors of the book, The B.O.S.S. Retirement Blueprint, and they’ve helped thousands of area families plan for a better, more secure retirement. They are ten-time Best of State Award winners and have 10 offices located throughout the Mountain West and Pacific Northwest.

This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization’s criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, 2023, and 2025. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.

This article is educational in nature and should not be considered official financial advice.

This article is sponsored by BOSS Retirement Solutions.