Social Security Benefit Cuts Expected in 11 Years: Tips to Supplement Your Retirement Income

Why Social Security cuts may be coming

The typical senior could be looking at a significant pay cut. Millions of retired seniors get monthly benefits from Social Security, but in about 11 years' time, those benefits have the potential to get cut in a serious way. Once the trust funds run dry, benefit cuts might have to happen.

The average monthly benefit could shrink by $400 in 2035

The average monthly Social Security benefit as of April 2024 is about $1,915. Social Security may need to cut benefits by 17% once its trust funds run out of money, resulting in an average monthly benefit of $1,976 in 11 years, leaving retirees with less to cover regular expenses.

Save now to make up for Social Security cuts

Building a solid retirement nest egg through shrewd investing and consistent savings can help individuals supplement their future reduced benefits. By contributing $600 a month toward retirement in an investment portfolio delivering an average annual 8% return, individuals can potentially make up for missing funds in their monthly Social Security check.

Try to find the silver lining

While Social Security benefit cuts pose challenges, it's essential to invest in retirement savings and supplement senior income wisely to mitigate the impact of potential cuts on future financial stability.