Social Security Cuts: Retirees in these 15 States will Lose More Than $500 a Month in Benefits

Social Security recipients could see their monthly checks slashed by more than one-fifth beginning in 2033.

A recent update from the Social Security Administration (SSA) projected that the OASI fund will “become depleted” in the fourth quarter of 2032. When that happens, Social Security’s income from payroll taxes would only be able to fund 78% of the benefits.

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Analysis from the Committee for a Responsible Federal Budget (CRFB) projected that a 22% cut will cause a “typical, newly retiring dual-earning couple” to lose $16,900 in annual benefits at the start of 2033.

That’s a big loss of income no matter where you live. But the financial pain will be a lot worse in some states than others.

Here’s a look at 15 states where retirees could see their Social Security payments slashed by more than $500 a month – and how you can offset the loss.

15 States Where Cuts Will Hit the Hardest

Based on the CRFB report, here are 15 states where retirees will face the biggest average cuts to their monthly payments beginning in 2033 (these are also states with the highest average Social Security payments):

How to Offset a Lower Check

Retirees and future retirees anxious about the prospect of lower Social Security payments can take proactive steps to help make up the difference.

If you haven’t filed for benefits yet, the best way to ensure the biggest check possible is by waiting until age 70 to file. This can increase your monthly payment by hundreds of dollars vs. claiming at age 62, which is the earliest age you can file.

An analysis by Fidelity found that for a typical Social Security recipient, waiting until age 70 to file can increase monthly benefits by more than 77% and lifetime benefits by more than 24%.

If you’ve already filed for Social Security, here are other steps you can take:

“Reset” your benefits. This move lets you pause your benefits and increase your monthly payment later on. There are two basic options, according to Fidelity. First, you can cancel or withdraw your benefits application and reapply later. Or you can use a “claim, suspend, restart” strategy when you reach full retirement age, which lets you voluntarily suspend your benefit and restart it at a later date.