Social Security Benefits Face 20% Cut by 2035

The Not-So-Golden Years Ahead

• Social Security’s trust funds are on a serious financial diet
• The program’s Trustees have circled 2035 on the calendar as the year Social Security benefits may face cuts
• While preparing for potential Social Security cuts is smart, they’re not set in stone (unlike your aging joints)
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Relax, folks! Social Security isn’t going bankrupt. It’s just going on a financial diet that none of us signed up for. The Social Security system will continue providing benefits, but possibly at reduced levels as the trust funds deplete.

Think of Social Security like that friend who always promises to pay for dinner but suddenly announces they “forgot their wallet” when the check arrives. The retirement income is still coming—just not as much as you were counting on.

The real problem? Baby boomers are retiring faster than teenagers ghost boring conversations. This mass exodus from the workforce means fewer people paying Social Security taxes and more people taking out benefits.

Soon, Social Security will owe more than your college-age kid asking for “just a little help” with rent. To cover this shortfall, the program will dip into its trust funds—which, unlike your emergency savings, can’t be replenished with a lucky night at bingo.

Once these funds run dry, benefits may need a haircut. And not just a trim—we’re talking about the kind of cut you gave yourself during lockdown that made your spouse question their life choices.

When Will the Social Security Diet Begin?

According to the annual Social Security Trustees report (a real page-turner, right up there with tax code amendments), the trust funds will be emptier than a buffet after a marathon by 2035. That’s when your Social Security benefits might go on an involuntary 20% reduction plan.

This percentage could change—either improving like fine wine or worsening like that milk you forgot about in the back of your fridge.

One thing that could speed up these cuts? President Trump has suggested eliminating taxes on seniors’ Social Security benefits. While this sounds as appealing as free dessert, it would actually reduce program revenue faster than your grandkids can drain your WiFi bandwidth.

How to Avoid Eating Cat Food in Retirement

Good news! These Social Security cuts aren’t guaranteed like death, taxes, and political arguments at Thanksgiving dinner. Lawmakers have several potential Social Security reform options.

• Increase Social Security taxes on workers—about as popular as suggesting everyone switch to dial-up internet
• Eliminate the wage cap that lets high-earners avoid paying Social Security taxes on their full income
• Push back the full retirement age—because apparently working until you’re older than dirt is the new retirement plan

Each solution has more drawbacks than a medieval torture device, which is why preparing for cuts might be smarter than expecting Congress to agree on lunch, let alone Social Security reform options.

If you’re still working, boost your retirement planning efforts faster than you’d run from a conversation about someone’s medical procedures. Already collecting Social Security benefits? You might need to reconsider your retirement spending—perhaps fewer cruises and more “staycations” admiring the weeds in your garden.

While Social Security cuts would be better than the program vanishing entirely (like your hair or your children’s phone calls), they could still impact your retirement income more than those stairs you can no longer climb. Better to plan for the worst and be pleasantly surprised than to bet your golden years on politicians solving problems efficiently.