Millions could face drastic Social Security cuts, Arizona US Rep. David Schweikert warns

The money you are counting on in retirement could soon not count for nearly as much.

Millions of Americans are at risk of having their Social Security benefits drastically cut within the next decade, and the clock is ticking on finding a solution, according to Arizona U.S. Rep. David Schweikert.

For the last 16 years, the Social Security Administration has had to supplement the money it has received from taxpayers with money from the retirement trust fund. However, those reserves are expected to run dry in 2032.

Schweikert, a Republican who is running for governor this year after eight terms in Congress, has been among those beating the drum on the issue. During an interview with KTAR News 92.3 FM’s Arizona’s Morning News on Wednesday, Schweikert discussed how the problem has been able to fester.

“It was designed as a system of today’s taxpayers pay for today’s retirees,” he said. The problem, he explained, is that the number of people receiving their benefits is outpacing the number of active workers.

What happens if Social Security reserve fund runs out?

If the reserve funds do run out, it would immediately trigger a 24% cut to benefits. That includes an estimated 1.4 million Arizonans who would have their monthly Social Security checks slashed by $511 on average, according to the nonpartisan think tank Committee for a Responsible Federal Budget. For comparison, the typical American household spent $519 on groceries each month in 2024, according to the most recent data from the Bureau of Labor Statistics.

But that’s a situation Schweikert would like to avoid, and the sooner, the better.

“It’s fixable, but you got to do about a dozen different things … and every day Congress waits, we’re another $7.7 billion in the hole, and the math gets harder,” Schweikert said.

If the Social Security trust fund is allowed to run out, Schweikert said it would take $638 billion to cover the shortfall for just the first year, which is equal to about 60% of annual defense spending.

Schweikert said one of his stopgap proposals, which he noted has received pushback in the past, would be to incentivize older adults to continue working by reducing their FICA payroll tax, which would lessen the strain on Social Security reserves. However, Schweikert acknowledged this would be only temporary relief that would be primarily used to buy more time for a more complete solution.

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