California could be impacted by Social Security insolvency

(The Center Square) – The trusts that fund Social Security benefits for retired seniors, survivors and people with disabilities face insolvency in the next six years, according to a report from the U.S. Social Security Administration.

Those affected could include seniors and others in California.

The 2026 Old Age and Survivors and Disability Insurance Trustees Report shows that before reserves are depleted, 100% of Social Security benefits can be paid out. After reserves run out of cash in 2032, however, only 78% of those benefits can be paid, the report said.

That’s a 22% reduction in Social Security benefits to retirees and the disabled alike, according to financial information company SmartAsset.

“What that would mean is that if Congress does not act by 2032, there would be an immediate across-the-board 22% reduction in benefit payments,” Toby Nelson, a representative for SmartAsset, told The Cent...