Millions of retirees received their latest Social Security checks on August 26, but the payment landed as concerns grow over how much of their benefits they can keep today and how much could be at risk in the future.
Under the Social Security Administration’s 2026 payment schedule, beneficiaries whose birthdays fall between the 21st and 31st generally receive their payments on the fourth Wednesday of each month.
The latest SSA data shows retired workers received an average $2,085.98 monthly benefit in July.
For retirees enrolled in Medicare Part B and collecting Social Security, the standard $202.90 monthly premium is automatically deducted from benefits this year; higher earners pay more under the income-related monthly adjustment amount (IRMAA).
Meanwhile, the latest Social Security Trustees projections show the retirement trust fund could exhaust its reserves in 2032, when continuing income would cover only 78% of scheduled benefits without congressional action.
Together, those pressures are putting both today’s checks and future retirement income under greater scrutiny.
Social Security’s 2.8% increase is being reduced by rising costs
The 2026 cost-of-living adjustment gave the average retiree about $56 more per month, but in reality, a sizable chunk of that increase never makes it past Medicare.
Part B premiums jumped from $185 to $202.90 this year, a $17.90 monthly increase of about 9.7%, according to the Centers for Medicare & Medicaid Services.
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The Part B deductible also climbed by $26 for the full year. The Part B premium increase alone consumes about 32% of the COLA before a retiree spends a dime.
That leaves the typical beneficiary with a net gain of roughly $38 per month. The consumer price index used to calculate the COLA tracks a general spending basket, not the health care costs that dominate retiree budgets.
The 2032 trust fund deadline just moved one quarter closer
The June 2026 Social Security Trustees Report projects that the Old-Age and Survivors Insurance (OASI) Trust Fund will deplete its reserves in the fourth quarter of 2032, one quarter earlier than the first quarter of 2033 projected in the 2025 report.
Without congressional action, continuing program income would cover only 78% of scheduled OASI benefits after depletion, leaving a 22% shortfall.
Dr. Myechia Minter-Jordan, AARP CEO, urges Congress to protect earned Social Security benefits from reductions.
“This should be a wake-up call: Congress needs to act,” Minter-Jordan said. “Americans have worked hard and paid into Social Security their entire lives, and they deserve to count on it when they retire … No family should see any cuts to what they’ve earned in Social Security.”
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The program’s long-term finances have also deteriorated, and the Bipartisan Policy Center estimates the 75-year OASI shortfall at $30.3 trillion, up from $26.1 trillion a year earlier.
Demographic pressures are adding to the strain, and the trustees lowered the long-run fertility assumption from 1.9 to 1.75 births per woman and reduced immigration projections.
Meanwhile, the worker-to-beneficiary ratio has fallen from more than 5-to-1 in 1960 to 2.9-to-1 in 2026, according to the Bipartisan Policy Center.
A $500 monthly cut would exceed the average retiree’s grocery bill
The Committee for a Responsible Federal Budget (CRFB) estimated in a June 3, 2026 report that Social Security insolvency would trigger an across-the-board benefit cut of 24% under earlier projections, reducing the average retiree’s monthly benefit by between $459 and $556 depending on the state.
The June 9, 2026 Trustees Report slightly narrowed that projected cut to 22% but did not change the state-by-state pattern.
That $500 figure exceeds what the typical retired household spends on groceries each month, about $438, according to Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data.
CRFB estimated the total national reduction at $345 billion annually, with 29 states facing average monthly cuts above $500.
“If we cut Social Security, nobody will be able to retire,” Nancy Altman, president of Social Security Works, told CBS News.
Financial experts outline 4 strategies to prepare for potential Social Security cuts
Retirees and near-retirees still have time to prepare before the OASI trust fund’s projected depletion in 2032. Fidelity Investments has outlined four approaches to protect retirement income against benefit uncertainty.
1. Delayed claiming
Each year a retiree waits past full retirement age adds 8% to the monthly benefit permanently. Claiming at 70 instead of 67 yields a 24% larger check.
Personal finance author Suze Orman has called claiming at 62 “a 30% reduction that is locked in permanently,” arguing on her podcast that the delayed-credit math still works even if benefits are eventually reduced.
2. Increasing savings rates
Fidelity has suggested that younger workers boost annual contributions by at least one percentage point, arguing that compounding makes early action especially valuable for those still decades from retirement.
3. Catch-up contributions
Workers aged 50 and older can contribute up to $32,500 in 401(k) plans in 2026, including an $8,000 catch-up allowance. Those aged 60 to 63 qualify for additional “super catch-up” options, raising the limit to $35,750, according to Fidelity.
4. Annuities
Variable, deferred, or immediate fixed annuities can create pension-like income streams that would not be affected by Social Security cuts, Fidelity recommended.
Preparing today could soften future Social Security challenges
Social Security’s long-term outlook remains uncertain. Rising healthcare costs, slower benefit growth, and trust fund pressures are prompting planners to encourage retirees to review their plans.
In a FinStream.TV interview, Jason Fichtner, executive director of the Retirement Income Institute at LIMRA, and Jae Oh, a fellow at the institute, said retirement planning should account for healthcare costs, taxes, Medicare premiums, and income strategies together rather than as separate decisions.
Fidelity and other retirement planners have similarly said that reviewing savings, retirement timelines, and income sources may reduce dependence on a single benefit program. Lawmakers will ultimately determine how the system changes.
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