Retirement Social Security

3 Groups Who Might Suffer the Most From Social Security Cuts

Social Security benefits may be reduced broadly, and cuts could hurt some seniors more than others.

By Maurie Backman , Edited by Laura Hohenstein

Updated Oct. 8, 2026

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Social Security is one of the most important senior benefits today. The average retiree on Social Security collected about $2,088 per month as of August 2026. And while that's only a little more than $25,000 on an annual basis, it's a sum of money many seniors rely on.

The problem is that Social Security faces the possibility of broad benefit cuts. The most recent report from the program's Trustees says a 22% reduction in benefits could arrive as soon as late 2032, which is when Social Security's Old-Age and Survivors Insurance Trust Fund is expected to run out of money.

But while sweeping Social Security cuts could hurt seniors on a whole, there are certain groups of people who stand to lose out the most financially.

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Why potential Social Security cuts loom

The reason Social Security faces potential benefit cuts boils down to a shrinking workforce. The program gets the majority of its funding from payroll taxes. Workers pay into Social Security at a rate of 6.2% on a certain amount of income that changes each year, and employers also pay in at that 6.2% rate. Self-employed workers cover the full 12.4% tax.

But due to declining birth rates and other factors, the labor force is shrinking. As a result, Social Security is not expected to have enough incoming revenue to pay benefits in full once its trust fund runs out of money.

Lawmakers have options for shoring up Social Security's finances and avoiding benefit cuts. But every solution that's floating around introduces a layer of complication.

For example, raising taxes gives Social Security a cash infusion. It also burdens workers and employers with higher costs. For this reason, seniors need to brace for Social Security cuts, even though they may not happen.

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Spousal benefits could drop to smaller levels

If Social Security ends up having to cut benefits, seniors who rely on spousal benefits could be thrown for a major loop. Spousal benefits from Social Security max out at 50% of a primary earner's full retirement age (FRA) benefit. So if someone is claiming a $2,000 benefit based on their own earnings record at FRA, their spouse is capped at $1,000 per month.

As of August 2026, the average Social Security spousal benefit payment was only about $987. That's less than half the average $2,088 benefit for retirees.

Survivors could face a big blow

Married people who are eligible for spousal benefits from Social Security are entitled to get survivor benefits if they outlive their spouses. Survivor benefits equal 100% of a higher earner's benefit.

But if Social Security cuts benefits on a broad basis, survivors could see their monthly checks reduced. And that could deal them a big blow.

Survivor benefit recipients, by nature, lose their partners, who may also serve as caregivers. In the absence of having their spouses around, seniors who have to live solo often need to turn to paid help when they need care. Getting smaller Social Security checks could make that care a lot harder to pay for.

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Seniors with no retirement savings could struggle

Workers are often warned to save well for retirement and not rely solely on Social Security. But building a solid nest egg is easier said than done. For people with low or stagnant wages, it can be next to impossible.

If Social Security is forced to cut benefits, seniors with no savings or outside income could end up being pushed into poverty. People in that boat may have the option to go back to work in some capacity. But for seniors with health or mobility issues, that may not be possible.

Bottom line

If Social Security is a big part of your retirement plan, you should know that benefit cuts may be inevitable. And while those cuts may not end up being as steep as 22%, you should prepare for a significant reduction to your Social Security and have a backup plan.

That plan could involve building savings, so you have a nest egg to tap as needed. It could also involve choosing investments that pay you on a regular basis, such as bonds or dividend stocks. You may also want to keep relocating to a cheaper part of the U.S. as an option in your back pocket, in case you need to stretch a reduced Social Security check further.

Since lawmakers have never allowed Social Security to cut benefits in the past, there's a good chance they'll manage to implement some type of fix to prevent a broad reduction this time around, too. But if you go into retirement with a backup plan or another way to get access to income, you won't automatically have to be as stressed about the idea of Social Security cuts.

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