Social Security may have to cut retirement benefits in six years. Here's how much money is at stake for beneficiaries

Social Security's trustees project the retirement trust fund will be depleted in six years, at which point incoming payroll taxes would cover only a portion of scheduled benefits, forcing an across-the-board cut absent congressional action. The shortfall puts roughly $1,000 or more per month at stake for the typical retired worker, whose average benefit is about $2,000 per month, meaning beneficiaries could see reductions of around 20-25% if the gap is not closed. The projections reflect ongoing demographic pressures, including the retirement of the baby boomer generation and a shrinking ratio of workers paying into the system relative to beneficiaries drawing from it. Congress faces mounting pressure to act, with potential fixes ranging from raising the payroll tax cap to adjusting the full retirement age or benefit formulas. Lawmakers have historically avoided Social Security overhauls, but the six-year window narrows the timeline for bipartisan negotiation. Watch for whether Congress takes up reform legislation and how the trustees' next annual report revises the depletion date.