Social Security Shortfall Threatens Retiree Income by 2033

The Committee for a Responsible Financial Budget warns that to align program costs with incoming revenue, a significant recalibration is inevitable. For the average American household, this adjustment translates to a monthly loss of roughly $500. Dual-income couples could face an even sharper decline, with annual retirement income potentially dropping by as much as $16,900.

The impact will not be felt uniformly across the country. Retirees in states with higher average Social Security payments—including Connecticut, New Jersey, and New Hampshire—are projected to bear the heaviest burden, with potential monthly losses exceeding $550. Other states, such as Michigan, Virginia, and Pennsylvania, also face significant reductions as the system struggles to bridge the funding gap projected for 2033.