The Congressional Budget Office (CBO) released a report this year containing one number that should change how every American near retirement thinks about income. The Old-Age and Survivors Insurance Trust Fund (the part of Social Security that pays retiree benefits) is projected to run out of money in 2032.
When that happens, benefits don't disappear. But they do get cut. The CBO projects an initial reduction of roughly 7% in 2032, followed by average annual cuts of about 28% between 2033 and 2036.
