US Social Security cuts could strip retirees of $6,000 annually

Projections show the U.S. Social Security trust fund could be exhausted by 2033, leaving the average monthly benefit reduced by about $500 and costing retirees more than $6,000 per year. The 2026 report estimates that after the reserve is gone, payroll taxes will cover only 78 % of scheduled benefits, creating a monthly shortfall of roughly $539. Analysts say the shortfall stems from longer life expectancies and fewer workers per retiree, leading to a projected $26.1 trillion deficit over the next 75 years.

University of California, Riverside scholars traced Social Security’s origins to 1930s New Deal reforms, noting its design as a payroll‑tax‑funded insurance program meant to protect aging workers. They highlighted historical exclusions that left many Black and low‑income workers out of early coverage, underscoring how the system’s structure has long affected equity and fiscal sustainability.