Key facts
- Retirees should plan for a potential 20% cut in Social Security benefits.
- The Social Security trust fund is projected to deplete in 2032.
- After 2032, revenue will cover 78% of scheduled benefits.
- Delaying Social Security claims from age 62 to 67 increases monthly benefits by over 40%.
Americans approaching retirement are advised to prepare for potential reductions in Social Security benefits by reassessing their financial plans, according to analysis from the Center for Retirement Research at Boston College. Financial planner Luke Delorme suggests stress-testing retirement plans with a projected 20% benefit cut to ensure viability. Strategies to mitigate potential shortfalls include saving more, working longer, or delaying benefit claims. Waiting until age 67 instead of 62 can increase monthly benefits by over 40%. The Social Security trust fund is now projected to be depleted in 2032, at which point incoming revenue is expected to cover only 78% of scheduled benefits. A 3.6% cost-of-living adjustment is set for January 2027, affecting 76 million Americans.