Social Security recipients in some US states could lose more than $500 per month in benefits if a key funding source becomes insolvent by 2032, according to a new study from the nonpartisan Committee for a Responsible Budget.
The study found that Connecticut residents would face the largest average monthly loss at $556, followed by New Jersey ($554), New Hampshire ($553), Delaware ($549) and Maryland ($541). At the other end, Louisiana would see the smallest average cut at $460, with Arkansas ($469), Kentucky and New Mexico ($472), and Montana and Maine ($478) also relatively less affected.
The Old-Age and Survivors Insurance trust fund is projected to run out in 2032, threatening benefits for all 63 million recipients. The system relies on a 7.2% payroll tax, but the worker-to-retiree ratio has fallen from 42:1 in 1945 to about 3:1 today, due to longer life expectancy and changing workforce participation.
Proposed solutions include increasing the payroll tax rate by one percentage point over ten years, removing the income cap on Social Security taxes (currently $184,500 in 2026), and raising the full retirement age to 69. The committee warned that no state would be spared from the potentially devastating effects of insolvency.
