Social Security faces a projected 2032 shortfall as Michigan Senate race unfolds

Social Security’s Old-Age and Survivors Insurance trust fund could be depleted by 2032, leading to a projected 22% cut in benefits if Congress does not act, according to a June report. The program serves just over 2 million Michigan residents, about one in five people in the state.

The next U.S. Senator from Michigan, either Abdul El-Sayed or Mike Rogers, will be in office as lawmakers confront the shortfall. An economics professor at Michigan State University said the declining ratio of workers to retirees is a leading cause; tax cuts enacted in 2025 are also projected to reduce income tax revenue from Social Security benefits.

Possible responses include raising taxes or reducing benefits. El-Sayed has called for eliminating the Social Security payroll tax cap, while Rogers’ campaign said he would protect Social Security and Medicare and seek to lower health care costs. A bipartisan bill introduced in July would establish a process for Congress to consider changes before the trust fund is depleted.

Read the full story at Lansing City Pulse.