New Hampshire Social Security recipients could face an average monthly reduction of $554 if the program’s main retirement trust fund is exhausted as projected in 2032, placing the state among those with the largest potential losses.
The estimate comes from data compiled by the Committee for a Responsible Federal Budget using projections from the Social Security Board of Trustees. The trustees’ six-member panel expects the Old-Age and Survivors Insurance Trust Fund to run out of resources in the fourth quarter of 2032.
The projected reduction is not an enacted cut or a change now scheduled for beneficiaries. It reflects what could happen under current law if the trust fund were depleted and lawmakers had not changed the program’s finances by then. After exhaustion, Social Security would be able to pay about 78% of scheduled benefits, according to the trustees’ projection.
New Hampshire among states with largest projected losses
The potential dollar loss varies by state because average monthly benefits differ. A uniform percentage reduction would produce larger dollar losses in states where recipients receive higher average payments.
- Connecticut: $556 per month
- New Jersey: $554 per month
- New Hampshire: $554 per month
- Delaware: $549 per month
- Maryland: $541 per month
The 15 states with the largest projected reductions would each see average losses of at least $515 per month. The list also includes Washington, Minnesota, Massachusetts, Michigan, Utah, Virginia, Kansas, Pennsylvania, Rhode Island and Vermont. Across the country, recipients in 29 states could face average monthly losses of at least $500 under the projection.
Social Security provides benefits to about 63 million people, including retirees, spouses and dependents. The program is financed primarily through dedicated payroll taxes and taxes on benefits. The trust funds cover the gap when incoming revenue is not enough to pay scheduled benefits.
Trust fund financing under pressure
Social Security’s cash outlays have exceeded its incoming revenue for the past 16 years, according to the information summarized in the projections. The program has used reserves to continue paying benefits during that period.
Under current law, Social Security cannot continue paying more in benefits than it receives in available revenue once the reserves are gone. Without legislative action to address the difference between revenue and scheduled benefits, payments would therefore be limited to the amount the program could finance through incoming funds.
The projected figures describe an average impact. Individual changes would depend on a recipient’s benefit amount and would not necessarily match the New Hampshire estimate. The trustees’ forecast concerns the program’s financial condition in 2032 rather than a current reduction in benefits.
