Social Security benefits could be reduced in 2032. Here's what to know

Millions of Americans could see changes to their Social Security benefits in the coming years if a projected funding shortfall isn t addressed by lawmakers. The Old-Age and Survivors Insurance Trust Fund, which covers retirement benefits to eligible retired workers and survivor benefits to eligible family members of workers who have died, is projected to deplete its reserves in 2032, according to the 2026 annual Social Security and Medicare Trustees Reports. So, what does that mean? The fund is projected to pay 100% of scheduled benefits through the fourth quarter of 2032, one quarter earlier than projected last year, according to the report. Separately, the Congressional Budget Office projects the fund will be exhausted in fiscal year 2032. If Congress takes no action before the trust fund’s reserves are depleted, continued revenue would cover about 78% of scheduled retirement and survivor benefits. The Disability Insurance Trust Fund, which covers disability benefits,