Social Security cuts: Retirees in these 15 states face losing more than $515 a month

The latest projections from the Social Security Board of Trustees – the six-member panel that oversees the financial operations and health of the agency’s trust funds – projects a key funding source will run out of resources in the fourth quarter of 2032.

After that fund, officially known as the Old-Age and Survivors Insurance Trust Fund, is gone, Social Security will only be able to pay 78% of promised benefits.

The issue comes from how Social Security is funded. The bulk of the program’s money comes through dedicated payroll taxes and taxes on benefits. When income falls short, the trust funds make up the difference.

For the past 16 years, Social Security payments have exceeded its cash income, forcing them to dip into fund reserves to pay benefits. By law, Social Security can’t pay out more in benefits than it receives in revenue, so once the trust fund is gone, cuts will follow.

On average, the monthly Social Security cuts would be about $500 a month.

While the cuts will be widespread, Social Security recipients in 29 states would see a benefit loss of $500 or more per month. Data from the Committee for a Responsible Federal Budget shows the 15 states that would be hit the hardest by Social Security cuts. In those states, Social Security recipients face cuts averaging $515 a month or more.

The projected size of Social Security cuts varies by state because average monthly payouts differ. States with higher living costs have higher average benefits, meaning any percentage reduction costs them more.

15 states that could lose the most in Social Security cuts (with average loss per month)

1. Connecticut – $556

2. New Jersey – $554

3. New Hampshire – $554

4. Delaware – $549

5. Maryland – $541

6. Washington – $531

7. Minnesota – $530

8. Massachusetts – $527

9. Michigan – $523

10. Utah – $523

11. Virginia – $522

12. Kansas – $520

13. Pennsylvania – $519

14. Rhode Island – $519

15. Vermont – $516

Social Security provides benefits for 63 million Americans, including retirees, spouses, and dependents. You can go here to see the cuts in each state.

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